Incitec Pivot Limited (ASX:IPL) Releases FY25 Business Update
Incitec Pivot Limited (ASX:IPL) has announced that its FY25 Group outlook remains broadly in line with previous guidance provided in November 2024.
Operational Performance
The Phosphate Hill plant in Queensland has been performing well during FY25. However, disruptions in sulphuric acid supply and recent weather events are expected to impact full-year production, which is now forecasted between 740kmt to 800kmt, down from the previous estimate of 790kmt to 860kmt.
Fertilisers Separation Progress
The sale process for the Distribution business commenced in early January, attracting strong interest with a binding sale agreement targeted for mid-2025. The Gibson Island real estate sale is also on schedule, with initial expressions of interest closing on 14 March. Additionally, the Geelong manufacturing closure is progressing as planned, with a transition to a Single Super Phosphate import model expected by Q4 CY2025. The strategic review of Phosphate Hill continues, focusing on mitigating critical variables to support ownership transfer.
Dyno Nobel Global Performance
Dyno Nobel Americas and Dyno Nobel Asia Pacific are performing in line with the previously announced outlook. The transformation program remains on track to achieve an FY25 exit run rate of approximately 40% to 50% of the estimated total ~$300 million EBIT uplift. FY25 results will be affected by $45 million to $55 million in turnaround impacts, primarily from the major turnaround at Moranbah expected to be completed in 1H FY25. The earnings split for the global Dyno Nobel business remains unchanged at ~40% in the first half and ~60% in the second half of FY25.
Chief Financial Officer Transition
Incitec Pivot Limited is progressing well in its search for a new Chief Financial Officer. Damian Buttler will take on the role of interim CFO following Paul Victor’s departure on 15 February 2025. Damian, who has held several senior finance roles over his 15 years with IPL, currently serves as the Group Financial Controller.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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