In This Article:
-
EBIT: Highest in a decade, increased by 15% to $806 million.
-
Net Profit: Rose by 11% to $409 million.
-
Statutory Net Profit After Tax: Increased by 77% to $525 million.
-
Operating Cash Flow: Robust at $808 million.
-
Return on Net Assets: Improved by 20 basis points from 12.6% to 12.8%.
-
Earnings Per Share (pre-significant items): Increased by $0.052 to $0.864.
-
Dividends: Increased to $0.47 per share, a 9% increase from the prior year.
-
Capital Expenditure: Total of $456 million, including $161 million in growth capital.
-
Net Debt: Increased by $705 million to $1.6 billion.
-
Gearing: Increased to 26.2%, below the target range of 30% to 40%.
-
Blasting Solutions EBIT: Increased by 13% to $755 million.
-
Specialty Mining Chemicals EBIT: Increased by 36%, driven by Cyanco acquisition.
-
Digital Solutions EBIT: Increased by 29%.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Orica Ltd (OCLDF) achieved its highest EBIT in a decade, reflecting strong strategic execution and operational excellence.
-
The company reported a 15% increase in underlying earnings to $806 million and an 11% rise in net profit to $409 million.
-
Orica Ltd (OCLDF) has made significant progress in sustainability, achieving a 43% reduction in Scope 1 and Scope 2 emissions from its 2019 baseline.
-
The company successfully completed two strategic acquisitions, Terra Insights and Cyanco, which are expected to contribute to future growth.
-
Orica Ltd (OCLDF) reported strong earnings growth across all segments and regions, driven by increased adoption of premium products and innovative technologies.
Negative Points
-
The company faced a tragic incident involving the loss of a colleague in India, highlighting ongoing safety challenges.
-
Despite improvements, Orica Ltd (OCLDF) continues to focus on fatality prevention and harm reduction, indicating room for further safety enhancements.
-
The North American segment experienced reduced demand for thermal coal and lower activity in the quarry and construction market.
-
The company anticipates supply constraints in its cyanide assets due to necessary safety upgrades and maintenance work.
-
Orica Ltd (OCLDF) faces ongoing challenges from macroeconomic factors such as inflation and geopolitical risks, which could impact future performance.
Q & A Highlights
Q: Can you provide a timeline for achieving the target of 50% earnings from beyond blasting, and how much of this growth will be organic versus acquired? A: Sanjeev Gandhi, CEO, stated that while a specific timeline cannot be provided, the goal is to achieve this target quickly. The current portfolio is sufficient to make significant progress, with a notable step-up expected in FY 2025 due to full-year contributions from specialty mining chemicals and digital acquisitions. The growth will be driven by both organic scaling and new product introductions.