Melbourne-based explosives manufacturer Orica Ltd. reported EBIT for the full-year ending Sept. 30, 2022, of A$579 million, up 36% from the year-ago $427 million. Statutory Net Profit After Tax (NPAT) was $60 million, including $257 million of significant item expense after tax. Orica had a FY21 loss of $173.8 million (GM Nov. 12, 2021). Total full-year revenues were up 36%, to $7.3 billion from $5.7 billion.
Following the sanctions placed on Russia, Orica said it completed the exit of its operating business in Russia in September, and related assets have been fully impaired.
Orica said total ammonium nitrate volumes increased 4% from the prior year due to increased mining activity driven by strong commodity prices and the company’s ability to provide security of supply to customers in a tight supply market.
“Our full-year result reflects the strength and resilience of our team, and a commitment to our refreshed strategy, resulting in improved financial performance and growth across all regions,” said Orica Managing Director and CEO Sanjeev Gandhi. “In November 2021, we refreshed our strategy centered on optimizing our operations, delivering smarter solutions, and partnering for progress across our four business verticals of mining, quarry and construction, digital solutions, and mining chemicals.
“This year has presented both challenges and opportunities for our business, including geopolitical tensions, trade sanctions, strong global commodity prices, and security of supply risks,” he added. “Our commercial discipline and collaborative culture, combined with the strength of our global manufacturing and supply network, have positioned us well to capitalize on the current market conditions and opportunities presented by a growing commodities market.”
The company expects FY23 EBIT from continuing operations to increase from FY22’s $563.8 million, which were up 39% from FY21’s $404.6 million.
“We expect the demand for critical minerals to remain strong in the year ahead, and we are well-positioned to navigate ongoing external challenges with the strengths of our global network and culture, while lowering our greenhouse gas emissions,” said Gandhi.