Investing.com – Incitec Pivot Ltd (ASX:) announced its results for the first half of 2024. Total EBIT reached $249 million, beating RBC’s forecast of $207 million and consensus estimate of $206 million. However, comparing these figures directly with market estimates is difficult due to the impact of restructuring, one-time events and discontinued operations. The company declared an ordinary dividend of 4.3 cents per share, supplemented by a special dividend of 10.2 cents per share.
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Key findings:
• Future Outlook: The company maintains a positive outlook for FY24, with Dyno Nobel’s earnings outlook remaining unchanged. Dyno Nobel Asia Pacific (DNA) expects EBIT growth to be in the mid-to-high single digits, while Dyno Nobel Americas (DNAP) expects to surpass its previous profit record as the contract re-award process nears completion.
• Fertilizer sales news: Preliminary negotiations with PT Pupuk Kalimantan Timur regarding cash consideration are ongoing. However, there is no guarantee that an agreement will be reached or a deal will be concluded. As a result, expected share repurchases of up to $900 million remain deferred.
• Fertilizers: The Fertilizers sector reported EBIT of $10 million, down 91% year-over-year, with margins down 9%. Despite improved margins and market growth in the distribution business, and lower gas costs compared to FY23, risks remain. The after-tax impairment cost of $408 million was also included as an individual significant item (IMI (LON:)).
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• Dyno Nobel Asia Pacific: Sector EBIT was $108 million, up 36% year-on-year, with margins up 4%. The increase in EBIT was driven by successful contract renegotiations, the expansion of BMA, technology developments and opportunities in EMEA through the Titonobel business.
• Dyno Nobel Americas: The Americas sector reported EBIT of $154 million, down 61% year-over-year, with margins down 14%. However, growth in the metals sector and in Chile, improving prices and cost support contributed to improved profitability. The result was also supported by improved production reliability and the WALA purchasing agreement.