Incitec Pivot Ltd.posted a net profit after tax of A$31.5 million for the half year ended March 31,after recording a A$105.6 million noncash impairment to the asset value of the GibsonIsland fertilizer manufacturing plant in Queensland, Australia.

The figure represents a 78.5% drop compared to the year-ago netprofit after tax, which totaled A$146.4 million.

Excluding the impairment, the company's net profit after taxfor the first half of fiscal 2016 dropped only 6.4% year over year to A$137.1 million,the company said May 10.

Incitec declared an interim fully franked dividend of 4.1 centsper share, compared to 4.4 cents per share in the year-ago half, maintaining a payoutratio of 50% of net profit after tax before the impairment.

The company produced 501,000 tonnes of ammonium phosphates atPhosphate Hill,compared to 507,000 tonnes a year ago. Production was impacted by a incident in Queensland inDecember 2015.

Production at the Moranbah plant increased to 174,288 tonnesof ammonium nitrate equivalent, compared to 153,000 tonnes of ammonium nitrate inthe prior-year half.

Managing Director and CEO James Fazzino said the company hasaccelerated its business excellence program to deliver A$100 million in sustainableoperating cost and cash savings by 2017.

The program will reduce Phosphate Hill gas costs by about A$20million a year from 2017, and a further A$35 million per year from 2019. In addition,procurement contracts are expected to further reduce Phosphate Hill costs by aboutA$10 million per annum from 2017.