Incitec Pivot share price lower after saying Queensland floods cost $10m a week

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ASX share market

The Incitec Pivot (ASX:IPL) share price has fallen 11.5 cents or 3.4% to $3.265 in Monday trade after saying it will lose $10 million in earnings a week due to the closure of the rail line between Townsville and Phosphate Hill after flooding in northern Queensland.

The ASX-listed chemicals and fertiliser manufacturer says its Phosphate Hill facility is undamaged but it began a progressive shutdown over the weekend.

It will try to run each plant at the facility for as long as possible until it runs out of storage and materials.

“IPL currently estimates that the impact of the rail closure will give rise to lost earnings before interest and tax of approximately $10 million per week from 9 February 2019 until resumption of full production,” Incitec Pivot said in a statement.

“IPL will provide an update when it receives a reliable estimate of the duration of the rail outage.”

Incitec Pivot said the rail infrastructure provider is waiting for conditions to improve so it can get to the rail line and estimate when services can resume.

The Townsville fertiliser distribution and port facilities are operational despite very minor damage, the company said.

With AAP

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au