- Incitec Pivot maintains its operational guidance in January.
- Incitec remains focused on maintaining supply chain buffers amid Covid disruptions.
- Despite this, the stock was spotted posting meagre losses on ASX.
Industrial chemicals and fertilisers firm Incitec Pivot Limited (ASX:IPL) shared a market update for January 2022 today, where it has maintained its operating guidance despite Covid blues. However, share prices have responded negatively today.
The materials firm’s shares were 0.721% down taking IPL’s share price to AU$3.445 each as at 11:42 AM AEDT.
What has IPL revealed in its’ January update?
- Incitec has revealed that it is witnessing favourable market conditions due to strong commodity tailwinds in the ongoing Covid disturbance.
- Due to this, Incitec has decided to keep its operating guidance for Q1.
- Meanwhile, Incitec is using its DNA & DNAP technologies to boost growth.
- Incitec has also stated that, its fertiliser business profit is underpinned by supportive farming conditions and value add
- Talking on Covid controls, Incitec has placed base level Covid controls on all operations and is focused on business continuity.
- Further, Incitec stated that for this supply chain and labour availability are critical factors. Thus, it has established supply chain buffers and is also managing inflationary pressures.
IPL’s road ahead-
IPL has made significant progress in acquiring Titanobel and Australian Bio-Fert (ABF). It is eyeing expansion via these businesses. IPL is also focusing on manufacturing excellence to capture the commodity market upcycle.