What’s up with Incitec’s (ASX: IPL) shares post FY22 results?

3 min read | November 16, 2022 12:29 PM AEDT | By Tamnna

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What’s up with Incitec’s (ASX: IPL) shares post FY22 results? — Image source: © Bogdanhoda | Megapixl.com

How did F22 results play out for Incitec?

Incitec Pivot achieved zero harm from the operations during FY22. The company’s total recordable injury frequency rate (TRIFR) was 0.89. This was slightly higher than 0.87 in FY21; however, Incitec has confirmed a continuous decrease in severity levels.
The NPAT for FY22 after individual material items (IMIs) was AU$1,027 million, a staggering 186% increase from AU$359 million in FY21.
The company reported earnings before interest and tax (EBIT) after IMIs of AU$1,485 million; this was 162% higher than AU$566 million over the previous corresponding period (pcp).
EBIT for Dyno Nobel Americas (DNA) was US$533 million, up from US$141 million in FY21.
EBIT for Dyno Nobel Asia Pacific (DNAP) was AU$162 million, up from AU$140 million over pcp.
EBIT for fertilisers improved from AU$268 million in FY21 to AU$614 million in FY22.
Incitec’s earnings per share improved from 34.4 cents per share in FY21 to 52.9 cents per share in FY22.
Return on invested capital (ROIC) was significantly higher than 5.8% in FY21 to 13.8% in the financial year 2022.
As per the official ASX release, Incitec maintained a strong balance sheet during FY22 with net debt of AU$1 billion, alongside net debt and EBITDA ratio of 0.5x after IMIs; this was lower than 1.1x in FY21.
Incitec also stated that it has discovered a means to cut operating GHG emissions by more than 42% by 2030.
The company’s operating cash flow increased from AU$443 million in FY21 to AU$1,093 million in FY22.
Net investing cash outflow and net financing cash outflow increased from AU$232 million and AU$267 million in FY21 to AU$575 million and AU$551 million in FY22, respectively.

Talking about the FY22 results, Jeanne Johns, managing director and CEO of Incitec, said:

Data Source: Company announcement dated 15 November 2022

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