Orica Limited (ASX: $ORI) has reported a Statutory Net Profit After Tax (NPAT) of $337.5 million for the half year ended 31 March 2024, marking a significant increase from $122.6 million in the previous corresponding period. The company's EBIT reached $353.7 million, reflecting a 10% growth from the prior corresponding period. Orica also announced an interim dividend of 19.0 cents per ordinary share, unfranked, representing a payout ratio of 52%.
Orica's Managing Director and CEO, Sanjeev Gandhi, highlighted the company's strong performance in the first half of 2024, with a 10% growth in underlying earnings compared to the previous corresponding period. He emphasized the continued commitment to executing the company's strategy, resulting in improved performance and growth across all segments. Gandhi also noted the strengthening of the core blasting business, supported by increased earnings from high-margin premium products and technology. Additionally, he expressed excitement about the strategic acquisitions of Terra Insights and Cyanco, emphasizing the commitment to successfully integrating these acquisitions and delivering value to shareholders.
Looking ahead, Orica anticipates higher EBIT for FY2024 from the underlying business, driven by strong demand for its products and services across the mining and civil value chains. The company expects minimal EBIT contribution from Terra Insights after integration costs and a significant EBITDA contribution in the range of $40 million to $45 million from Cyanco. Orica also provided insights into its expected depreciation and amortization, net finance costs, effective tax rate, and capital expenditure for the underlying business. The company acknowledged ongoing challenges such as inflationary pressures, higher energy costs, supply chain disruptions, and geopolitical risks. Orica remains committed to its long-term ambition of achieving net zero emissions by 2050 and is making progress towards its climate targets, including the installation of tertiary abatement technology at its Yarwun plant.