Explosives and mining services company Orica Limited (ASX:ORI) has reported a 3.3 per cent fall in first-half profits on Tuesday. In its Half Year Accounts report to the ASX, the company revealed that profit after tax attributable to shareholders was down 3.3 per cent to $211m for the half year to 31 March 2015. Consolidated revenue from operations of $3,279.3m was 2.3 per cent lower compared to the previous corresponding period. Revenue from continuing operations of $2,809.4m was up 0.3 per cent.
Orica also reported a net tangible asset backing per ordinary security of 550.3c, a 24.8 per cent increase. The company is reporting a 40c ordinary interim dividend, with 14c franked. This is similar to the previous interim dividend of 40c, with 16c franked. Earnings per share (EPS) for the period were down 6.1c to 59.9c per share. Current liabilities for the company were reported to be $1,803.9m, while the company’s current assets totalled $2,251.2m. Total equity for the company increased by 10.33 per cent to $4,544.7m.
Interim Chief Executive Officer Alberto Calderon praised the performance of Orica during a period of uncertainty. “Market conditions are unquestionably difficult but Orica is continuing to take actions to mitigate the impact of market headwinds to build a foundation for earnings resilience through the cycle,” he said. Shares of the company are up 74c, or 3.67 per cent, at $20.93 per share in the last hour of trading on Tuesday. ORI has fallen 4.24 per cent in the last 12 months but has advanced 10.87 per cent so far this year.
Author: Imran Valibhoy
May 12, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.