Incitec Pivot Provided Update on its H1 FY19 Results 

IPL

Incitec Pivot Limited (ASX: IPL) is mainly involved in manufacturing and distribution of industrial explosives, industrial chemicals and fertilisers. Today (i.e., 2 April 2019), the company has provided an update on its H1 FY19 results in which it has informed about various factors which are impacting the first half earnings before interest and tax (EBIT) and the full year outlook.

In its update, the company has informed that due to dry weather across pasture, summer and winter cropping regions in Eastern Australia, the distribution sales in H1 FY19 are currently down by around 200,000 tonnes as compared to the prior corresponding period (pcp). And the company does not expect any substantial recovery in the second half of FY19. As a result of this, the company is expected its H1 FY19 EBIT to be around A$20 million lesser than the EBIT in the pcp.

While providing the update on the Queensland rail outage, the company informed that it has been working to reduce the impact of the outage by creating an alternative logistics.

Sponsored ad by Kalkine

It is expected that the financial impact of the outage on H1 FY19 EBIT will be around A$60 million with the total impact for the 2019 financial year now anticipated to be around the lower end (A$100M) of the range previously announced.

Following the review of its Single Super Phosphates (SSP) manufacturing operations in Victoria, the company has advised that it will close down its Portland SSP manufacturing facility in May 2019. Further, the operations of the Portland facility will be consolidated to the Geelong SSP manufacturing facility. As a result of the closure and subsequent consolidation of operations to Geelong, the company expects to incur a total cost of around A$13 million which will be included in the FY19 results.

It is expected that the combined operations will deliver Synergies which will bring in additional A$3 million EBIT per annum and a sustenance capital saving of around A$1 million per annum, both from FY 2020.

While providing the update on its Louisiana Ammonia Plant, the company informed that it has successfully mitigated the issues which were previously experienced in the plant’s CO2 removal system.

Recently in late March, the plant was taken down due to issues relating to compressor electronic controls. The company expects the full rate production will resume in the second week of April 2019. The company expects to generate EBIT of A$14 million from its Louisiana Ammonia plant in the first half of FY19 as compared to A$62 million in the pcp.

The company’s H1 FY19 results are scheduled to release on 20 May 2019.

In the past six months, the share price of the company decreased by 20.60% as on 1 April 2019. At the time of writing, i.e., on 2nd April 2019 AEST 1:08 PM, the stock of the company was trading at a price of A$3.080, down 2.057% during the day’s trade with the market capitalisation of ~A$5.07 Bn.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments
Join Our Forum

We help you to connect with investors and people connected with the stock market.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here