Incitec Pivot books sharp lift in first-half net profit

Incitec Pivot forecast a better outlook for the second half citing a strong underlying market.

Incitec Pivot’s Phosphate Hill plant. Picture: Supplied

Incitec Pivot said first-half net profit rose sharply on the year-earlier period because of fewer asset writedowns, but that earnings fell because of operational challenges that included a rail outage and plant disruptions.

The chemical and fertilisers company (IPL) on Monday reported a net profit of $41.9 million for the six months through March. That compared to a net profit of $7.6m in the same period a year earlier.

Earnings before interest and tax, excluding material items, fell to $119m from $240m, it said. Incitec Pivot reported $141m in non-recurring charges that included a key rail closure in Queensland state.

The company declared an interim dividend of 1.3 cents a share, down from 4.5 cents a year ago.

Still, Incitec Pivot forecast a better outlook for the second half and beyond because of a strong underlying market.

“While the first half result was impacted by some significant non-recurring events, we are making good progress with our strategic agenda,” chief executive Jeanne Johns said in a statement.

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