Incitec Pivot (ASX:IPL) sticks to guidance amid Covid-19 crisis

January 20, 2022 12:05 PM AEDT

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ASX:IPL, Incitec Pivot Limited, ASX, Materials Stocks — Image source: © Prometeus | Megapixl.com

Highlights

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.

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