Chemicals and explosives business Orica has revealed a sharp drop in net profit after tax for the six months to 31 March as it faced headwinds from Covid-19, geopolitical issues and foreign exchange movements.
The company’s NPAT was 54 per cent down to $77 million for the period according to a statement.
CEO Sanjeev Gandhi said the results were in line with previous expectations.
“As we address these challenges, we have maintained our disciplined approach to our balance sheet and capital management, while delivering a step up in cash generation and controlling our levels of debt and gearing.
“Operationally we continue to focus on what we can control, making good progress on many core strategic fronts, including growing uptake of our high margin digital solutions, the successful integration of (Peruvian explosives manufacturer) Exsa, Burrup operating in line with our plans and further stabilisation of our SAP platform.”
Gandhi said the company’s decarbonisation projects were progressing to plan with Orica on track to meet its ambitions emissions targets.
Orica announced it will sell its Minova business which provides ground control solutions for mining, civil engineering/tunnelling, geotechnical and construction sectors.
Gandhi said the company’s fundamentals remained sound, although he remained cautious about the short-term outlook.
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