Orica (ASX: $ORI) completes Deer Park land sale and updates business performance

Orica Limited (ASX: $ORI) has successfully finalized the sale of approximately 66 hectares of surplus land at Deer Park, Victoria to UniSuper for $260 million. The net profit after tax from the sale is approximately $173 million and will be recognized as an individually significant item in H1 FY2024. The company's outlook for H1 FY2024 EBIT from continuing operations has improved slightly from the previous outlook at the FY2023 results on 9 November 2023.

Orica Managing Director and CEO, Sanjeev Gandhi, on business performance and outlook

The positive momentum from the second half of the 2023 financial year has continued as a direct result of our continued focus on executing our strategy, strong customer demand, and increased earnings from new technology offerings. These efforts will be reflected in our financial performance for the first half of 2024, and we expect this momentum to continue through this financial year. While external challenges remain, we will continue to work hard to mitigate the impact of these on our business. Our prudent balance sheet positions us well to manage the volatile external environment and support further business growth, advancing climate change initiatives, and delivering improved shareholder returns. Planned maintenance turnarounds ensure our manufacturing plants continue safe and reliable operations and utilisation remains high. The teams have done a fantastic job on our turnarounds so far this year, with each planned event completed safely, on time and within budget. Importantly, we have continued to ensure security of supply to our customers during the scheduled turnarounds.

Summary of Orica's recent developments and future expectations

Orica has successfully completed the sale of surplus land at Deer Park, Victoria, generating a net profit after tax of approximately $173 million. The company expects an improved H1 FY2024 EBIT from continuing operations. Additionally, the progress of planned maintenance turnarounds and the expected completion of the Terra Insights acquisition by the end of March 2024 indicate Orica's commitment to maintaining safe and reliable operations, supporting further business growth, and enhancing its digital solutions and capabilities. Orica's focus on executing its strategy, addressing external challenges, and delivering improved shareholder returns reflects its determination to navigate the volatile external environment and capitalize on opportunities for sustainable growth.