Orica (ASX:ORI) shares gain on robust H1 FY22 earnings

Be the First to Comment Read

Orica (ASX:ORI) shares gain on robust H1 FY22 earnings

More on:
Orica (ORI) share price
Image source: © Allisgood76 | Megapixl.com

Highlights:

  • Orica’s underlying EBIT jumped by 58% in H1FY22 compared to H1 FY21. 
  • The company declared to pay 13 cents of dividend to its shareholders in July 2022.
  • Orica opened in green today, backed by this announcement.   

The shares of Orica Limited (ASX:ORI) were spotted trading 4.467% higher at AU$16.37 per share at 10:42 AM AEST on the ASX today (12 May). 

Orica’s share price jumped on the ASX today after the ASX-listed materials sector company revealed its first-half financial performance results (H1 FY22) today. 

The share price of Orica has gained approximately by 22% on the ASX over the past 12 months. On the other hand, Orica’s year-to-date share price also gained over 17% at 10:42 AM AEST on the ASX today (12 May). 

Details of Orica’s H1 FY22 financial result 

Orica reported an underlying EBIT gain of 58% from the previous corresponding period to AU$245 million during H1 FY22 (the period ended on 31 March 2022).  

On the other hand, the company also reported a statutory net loss after tax (NLAT) worth AU$85 million. 

The company noted that its performance in this half was improved due to better market conditions.

Read more: Orica Limited (ASX:ORI) shares gain as global commodity markets improve

Key financials of Orica in its H1 FY22 results 

Image Source © 2022 Kalkine Media ®

Management commentary: 

Sanjeev Gandhi, the Managing Director of Orica, said that the company’s first-half results were primarily driven by relentless efforts by the entire team, improved performance, a better market condition and a redefined strategy that was developed in November 2021. 

Orica’s newly defined strategy aims to deliver solutions and technologies that enhance productivity and innovation for its clients. Orica’s strategy was also focused on offering attractive value and returns to its shareholders and other stakeholders.

Orica’s dividend distribution plan: 

Orica (ORI) share price

Image source: © Qing02051981 | Megapixl.com

The board of Orica has determined to distribute an unfranked interim ordinary dividend worth 13 cents per share to its eligible shareholders based on its earnings in H1 FY22. The dividend rate reflects a payout ratio of 41%.

Orica is expected to pay the dividend to its shareholders on 8 July 2022. The record date of the dividend is 1 June 2022, which means any shareholders registered till or on 1 June will be eligible for the dividend.

Read more: How did Sayona Mining (ASX:SYA) shares perform in last one month?

Orica’s outlook for FY22 

Orica anticipates continuing strong financial performance in the second half of FY22 as well. However, the company’s performance is highly subjected to market conditions.

Sanjeev Gandhi, the Managing Director of Orica, strongly believes that the company will experience steady growth in the commodity sector, especially in gold, copper and quarry and construction during H2 FY22.

Furthermore, he also said that the company is likely to maintain its earnings momentum from its underlying businesses in H2 FY22 despite the sudden termination of operations in Russia, supply chain disruption due to the Russia-Ukraine conflict and the divestment of Minova.  

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK