trending Market Intelligence /marketintelligence/en/news-insights/trending/EwSY_i7bjrElb4W53UF6Tg2 content esgSubNav
In This List

Incitec Pivot H1'16 net profit drops 78.5% YOY on noncash impairment

Blog

Q&A: Data That Delivers - Automating the Credit Risk Workflow

Blog

Lithium prices hold firm, cobalt prices rally

Blog

Profit margins key to Tsingshan's battery nickel supply plans

Blog

The Future of Risk Management Digitization in Credit Risk Management


Incitec Pivot H1'16 net profit drops 78.5% YOY on noncash impairment

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.