Incitec Pivot Limited (ASX: $IPL) Announcement

Incitec Pivot Limited (ASX: $IPL) has announced the cessation of negotiations with PT Pupuk Kalimantan Timur (PKT) for the sale of its fertilisers business, Incitec Pivot Fertilisers (IPF). This decision allows IPL to commence its on-market share buyback program of up to $900m, prioritizing the buyback for the benefit of its shareholders. IPL will continue to manage the Dyno Nobel and IPF businesses separately, with Dyno Nobel focusing on expanding its position as a leading global explosives business, and IPF continuing to deliver value-add fertilisers and soil health services for agricultural customers.

IPL CEO and Managing Director, Mauro Neves, on the Cessation of Negotiations

Throughout the sale negotiations with PKT, we were focused on completing a sale transaction in a timely manner to allow us to commence our on-market buyback of up to $900m. We have determined we are unlikely to achieve this outcome with PKT in an acceptable timeframe, and as a result we made the decision to cease negotiations with them. We will continue to assess options for the structural separation of the two businesses, however in the near-term our focus will be on progressing the on-market buyback program for the benefit of our shareholders. Led by a talented global executive leadership team, our Dyno Nobel business is being transformed into a global operation which is expected to substantially improve its financial performance. Our IPF business remains focused on value accretive market share growth and is in a strong position for the agricultural season ahead.

FY24 Outlook and Investor Briefing

Incitec Pivot Limited (ASX: $IPL) confirms that the FY24 earnings outlook for the Dyno Nobel and IPF businesses remains consistent with the commentary provided at the 1H24 results on 16 May 2024. IPF Distribution continues to perform well, while FY24 production volumes at Phosphate Hill are likely to be around the lower end of the previously indicated range. IPL will hold an investor conference call at 10.00am on Wednesday 10 July 2024 (AEST) to provide further details. The company's decision to cease negotiations for the sale of its fertilisers business reflects its commitment to maximizing value for shareholders and its confidence in the future performance of both the Dyno Nobel and IPF businesses.