A revamped strategy and improved market conditions have enabled underground mining solutions provider Orica to record a significant lift in profits.
The company registered a Net Profit After Tax for the year ended September 30 of $60 million, and underlying earnings before interest and tax (EBIT) of $579m, up 36 per cent on the prior corresponding period.
There were strong earnings growth in all regions, with commercial discipline embedded across the organisation, and a focus on quality of earnings.
Orica managing director Sanjeev Gandhi said the full year result reflected the strength and resilience of the company’s team.
“In November 2021, we refreshed our strategy centred on optimising our operations, delivering smarter solutions, and partnering for progress across our four business verticals of mining, quarry and construction, digital solutions, and mining chemicals,” he said.
“At the core, we continue to pursue organic growth from blasting and by expanding Orica’s presence across future-facing commodities. Beyond blasting, we are accelerating customer adoption of our new technologies and demonstrating our strengths and capabilities in providing integrated digital workflows, from mine-to-mill.
“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. Our commercial discipline and collaborative culture, combined with the strength of our global manufacturing and supply network have positioned us well to capitalise on the current market conditions and opportunities presented by a growing commodities market.”
The Board has declared an unfranked final ordinary dividend of 22 cents per share, representing a payout ratio of 53 per cent. This brings the full year dividend to 35 cents per share and full year payout ratio of 48 per cent.