Chemicals and explosives manufacturer Orica has announced a Statutory Net Profit After Tax (NPAT) for the year ended 30 September of $60 million, and underlying earnings before interest and tax (EBIT) of $579 million, up 36 per cent on the previous corresponding period.
Return on net operating assets increased from 8.1 per cent in FY2021 to 11.4 per cent in the current financial year.
Improved market conditions and a corporate strategy refocused during the Covid-19 pandemic led the improvement, according to Orica Managing Director and CEO Sanjeev Gandhi.
He said the refreshed strategy focused on optimising operations, delivering smarter solutions, and partnering for progress across its four business verticals of mining, quarry and construction, digital solutions, and mining chemicals.
Ghandi said: “At the core, we continue to pursue organic growth from blasting and by expanding Orica’s presence across future-facing commodities.
“Beyond blasting, we are accelerating customer adoption of our new technologies and demonstrating our strengths and capabilities in providing integrated digital workflows, from mine-to-mill. Mining Chemicals also continues to present growth opportunities for our business.”
During the year the company increased its digital solutions adoption rate by 63 per cent on the previous year.
In August the company bought Axis Mining Technology to strengthen orebody intelligence capabilities, while Orica also introduced new products including a second generation WebGen 200 wireless explosives initiating system.
Ghandi said the year presented both challenges and opportunities including geopolitical tensions, trade sanctions, strong global commodity prices, and security of supply risks.
“Our commercial discipline and collaborative culture, combined with the strength of our global manufacturing and supply network have positioned us well to capitalise on the current market conditions and opportunities presented by a growing commodities market.”