Incitec Pivot shares fell 4 per cent on Monday after investors gave the company’s plan to spin off its explosives unit from its fertiliser business a lukewarm reception, despite the company reporting record half-year profits.

The demerger is part of the listed fertiliser and explosive giant’s plan to revive its standing with investors, as the outlook for Incitec Pivot is shrouded by the impact of Labor’s planned climate action and a global energy crunch that has fuelled gas prices.