Incitec (ASX:IPL) And OFX (ASX:OFX) Report, Share Prices Rise


Companies and indices mentioned:
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In ASX sharemarket news, Incitec Pivot (ASX: IPL) has announced its 2019 full year result to investors and OFX (ASX: OFX) reported its half year result to 30 September 2019.

Incitec Result

Incitec Pivot is the world’s second-largest explosives maker and a key supplier to many of Australia’s largest mining companies.

Incitec Pivot reported that its revenue increased by 1.6% to $3.92 billion, its EBITDA (click here to learn what EBITDA and EBIT means) fell 1.6% to $605.3 million, EBIT dropped 5.3% to $303.7 million and net profit declined 26.7% to $152.4 million.

The company said that there was a $197 million negative impact of non-recurring items including a $115 million hit from the Queensland rail outage.

Due to the fall in the profit, the Board of Incitec Pivot decided to cut the dividend by 56% to 4.7 cents per share with a final dividend of 3.4 cents per share.

The Incitec share price rose slightly in early trading in response to this report.

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OFX Result

OFX (ASX: OFX) reported its half year result to 30 September 2019 this morning.

OFX is a global provider of online international payment services for consumers and businesses. It has been operating since 1998 when it was launched in a garage in Sydney as an information-only website.

The international payment business reported that its turnover of $11.5 billion was down 5%. However, transactions were up 5.2% to $47,900 and transactions per active client were up 9.3% to 7.0 with 154,000 active clients.

Fee and trading income was up 0.5% to $65.3 million with ‘Corporate’ growing 9.7% and North America growing 19.3%.

‘Underlying’ EBITDA excluding corporate action costs rose 2.3% to $16.5 million, however statutory net profit decreased 7.7% to $8.3 million.

The OFX Board decided to declare an interim dividend of 2.35 cents per share, franked to 70%.

OFX CEO and Managing Director Skander Malcolm said: “This was a solid result in what has been a difficult global economic environment. 

We won our first major new Enterprise partner during the half with an exclusive agreement with Link Market Services Ltd (ASX: LNK). OFX will become Link’s preferred partner in Australia for international payments such as dividends for its substantial base of offshore investors.”

The OFX share price is up around 3% in early reaction.

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At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

Jaz Harrison

Jaz Harrison

Jaz is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.