Orica confirmed it is likely to push ahead with a trade sale or demerger of its $1billion chemicals division, as the explosives maker reported an 8 per cent drop in half-year net profit to $242 million. Orica kicked off the strategic review of the chemicals division in January and has retained Goldman Sachs to lead the process. A sale or spinoff was first reported as a possibility by Street Talk in February, but Ian Smith on Tuesday confirmed “this is the most likely thing for the business."

Speculation has emerged that conglomerate Wesfarmers is running the ruler over the chemicals business, which analysts value as low as $650 million and as high as $1 billion. However Mr Smith declined to comment on any talks he is having.