Chemicals and explosives company Orica was hit hard by a slowdown in the mining sector through the Covid-19 pandemic, today announcing net profit after tax for the year to 30 September, down 31 per cent on the previous corresponding period.
The Melbourne company revealed an underlying EBIT of $605 million, down nine per cent, as ‘prolonged Covid-19 impacts’ especially in developing markets hit operations.
Revenue was relatively steady at $5.6 billion, down five per cent from the prior year.
Orica managing director Alberto Calderon said: “Our FY20 financial result demonstrates the resilience of our operating and financial performance in the face of the global pandemic.
“After a strong first half that delivered growth in volumes, revenue and earnings, Covid-19 temporarily disrupted our strategic momentum.
“(But) we achieved all the major initiatives, and passed all the key strategic milestones, that we set ourselves for the year.”
During the year ammonium nitrate production was down one per cent to 3.9 million tonnes.
Orica also took the lead in Latin American markets by acquiring Peruvian manufacturer EXSA, while its Burrup facility in Western Australia began producing ammonium nitrate.
The company also completed the rollout of a new ERP system and extended the reach of its digital blasting platform BlastIQ to 87 mine sites.
Calderon said that during the year Orica reduced its Scope 1 and Scope 2 greenhouse gas emissions by nine per cent.
He announced a new target for the company of a 40 per cent cut in emissions by 2030.
“This is not just an aspirational goal it is a very real, credible and achievable target, supported by the science and proven technology.
“We will achieve this goal by reducing emissions from our industrial processes, increasing efficiency, partnering with government and civil society to drive adoption of low-emissions technology, and leveraging our expertise in innovation.”
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