Orica has released its 2019 results which have shown a profitable result, after posting a loss in 2018.
The explosives and chemical manufacturing company posted a net profit after tax of $245 million. Share earnings increased by 14 per cent to 97.9 cents per share.
“Orica’s manufacturing and cost performance is improving across the board. Volumes are growing and our market-leading technology solutions are gaining traction with customers. Our growth drivers are starting to deliver,” said Orica managing director, Alberto Calderon.
According to Calderon, the company performed particularly strongly in Europe, the Middle East, and Africa. Orica’s Australian operations were also positive.
“The increase in Australia Pacific & Asia volumes was led by 6% growth in Australia, with market share in the region continuing to increase,” said Calderon.
Orice was positive about the future outlook. In a statement, the company noted it expected increased demand and product mix to drive positive growth, as well as its technological products. Capital expenditure in the 2020 financial year is planned to be between $370 and $390 million, excluding rectification at the Burrup site, where defective componentry caused premature cracking and unplanned maintenance at the ammonium nitrate site..
“While there are many external factors that can impact our performance, Orica’s efforts to improve every aspect of operations within our control is starting to deliver results. We are optimistic this early momentum will be maintained and grow in the years ahead,” said Calderon.