Orica Limited (ASX:ORI) Announces First Half Business Update
Business Performance
Orica reported a strong performance for the first five months of the financial year, with EBIT expected to exceed prior plans. All three segments—Blasting Solutions, Digital Solutions, and Specialty Mining Chemicals—are anticipated to deliver higher contributions compared to the same period last year. Notably, sales of carbon credits are expected to finalise in March 2025, providing an estimated benefit of up to $15 million.
Financial Outlook
Depreciation and amortisation are projected to be at the lower end of $490 million to $510 million for the full year. Net finance costs are expected to remain between $190 million to $200 million. Capital expenditure is in line with 2024, with a focus on the second half of the year.
Significant Items
Orica anticipates an impairment charge in Latin America and restructuring costs in Europe, the Middle East, and Africa, totaling a reduction in statutory net profit after tax of $300 million to $350 million, with $220 – $245 million being non-cash adjustments for the first half of 2025
Executive Comments
Managing Director and CEO Sanjeev Gandhi said, “I am pleased with the strong trajectory from 2024 that continued into the first half of this year. The integration of Cyanco and Terra Insights is progressing well in line with our plans and demand for Orica’s products and services remains strong across all three segments. This stronger business performance, along with the benefit from the sale of carbon credits, will result in the first half result being ahead of our expectations. Subject to no further volatility in external factors, I expect that this momentum will continue into the second half and beyond. I am looking forward to sharing more details with you at our Investor Day next week.” – Wednesday, 12 March 2025 at 9:30 am (AEDT).
Motley Fool contributor Abbie Stokes 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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