Orica (ASX: ORI) has just reported its full year result to 30 September 2019, showing a swing to profit.
Orica is one of the world’s largest providers of commercial explosives and blasting systems. It supplies its products to various industries including mining, quarrying and oil & gas. It is also large supplier of sodium cyanide for gold extraction and it provides ground support for mining and tunnelling. It has been operating since 1874, operates in over 100 countries and has around 11,500 employees.
Orica’s FY19 Result
In the year to 30 September 2019, Orica grew its sales revenue by 9% to $5.9 billion thanks to higher volumes and services, increased penetration of advanced products and favourable foreign exchange movements.
In terms of its day to day profit, EBIT (click here to learn what EBIT means) rose by 8% to $665 million. Management said there was a strong business performance across all regions and improvement in its manufacturing operations.
Orica reported that its statutory profit was $245 million, up from a loss of $48 million last year. The Underlying profit increased by 15% to $372 million.
Orica Dividend
Orica’s Board declared a final dividend of 33 cents per share, bringing the full year dividend to 55 cents per share, which is an increase of 6.8% compared to last year.
Orica Management Comments
Orica Managing Director Alberto Calderon said: “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.
“All our regions are performing strongly with Europe, Middle East & Africa reporting a particularly pleasing result in FY19 following focused efforts to improve this business. Increased penetration of our technology-based blasting solutions and contract wins have driven sales revenue 9% higher for the period.
Orica Outlook
The company said that the outlook for FY20 and beyond is positive. It’s expecting higher earnings this financial year underpinned by increased demand and product mix across all regions and further take up of Orica’s technology.
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