SYDNEY — Incitec Pivot Ltd. reported a sharply higher half-year profit, benefiting from a steep rise in fertilizer prices and buoyant demand for mining explosives amid a rebound in the global economy.
Incitec said its net profit totaled 384.1 million Australian dollars (US$271.1 million) in the six months through March, compared to A$36.4 million a year earlier. Revenue rose by 48% to A$2.55 billion.
Directors of the company declared an interim dividend of 10.0 Australian cents per security, sharply higher than the 1-cent payout a year earlier.
Chief Executive Jeanne Johns said Incitec had captured “the very strong commodity price environment and foreign exchange tailwinds, as well as successfully manage inflationary pressures and supply chain disruptions.”
Incitec didn’t provide profit guidance, in line with previous reporting periods, but said inflation was increasingly impacting its cost base, with rising people and other input costs. “Where possible, these costs are being managed by repricing through to our customers and efficiency measures,” Incitec said.
The company also said that disruptions to global supply chains are likely to continue in its fiscal second half.
“Allowance for longer lead times, the identification of alternative sourcing and increased strategic buffer stocks have helped mitigate any adverse impacts,” Incitec said.
Turning to its specific operations, Incitec said its Waggaman plant in Louisiana is expected to produce at nameplate capacity in its second half, as is its Moranbah facility in Australia. However, a planned turnaround at its Phosphate Hill facility is scheduled to result in eight weeks of lost production.