The Incitec Pivot Limited (ASX: IPL) share price is up after the company provided an update on the impact of Hurricane Ida.
Incitec Pivot manufactures, markets and distributes industrial chemicals, explosives and fertilisers. It owns and operates manufacturing plants around the world and is Australia’s largest supplier of fertilisers.
Hurricane Ida and Incitec Pivot
The explosives and fertilizer business took steps to halt its Waggaman plant on 28 August in anticipation of the hurricane. This was to ensure the safety of plant workers and to protect the plant against damage.
The hurricane impacts
Incitec Pivot said that its Waggaman ammonia plant in Louisiana has had inspections undertaken since Hurricane Ida to assess damage. The inspections have not identified any “material” damage to the plant.
The company said that the plant is awaiting the restoration of high voltage power and utilities from third party providers before it can restart operations. The total outage is expected to be around four weeks from the date the plant was brought down.
Based on the current market prices for ammonia, and the planned restart schedule, Incitec Pivot expects the loss of earnings before interest and tax (EBIT explained) to be approximately US$28 million (US$21 million net profit after tax).
Final thoughts on Incitec Pivot share price
Investors may be relieved to hear that the damage to the Waggaman plant is minimal and it will be able to come back to production quickly.
At the time of writing the Incitec Pivot share price is up 2.5%.
