Incitec Pivot CEO, James Fazzino is going out in style – the company, a leading fertiliser and explosives maker lifted full-year profit to $318.7 million and small lift in final dividend for the year to September 30, and a $300 million share buyback over the next year.
In fact the net profit for the year to September 30 more than doubled from the $128 million profit recorded a year ago, which was dampened by lower global commodity and fertiliser prices.
Revenue rose 3.6% to $3.5 billion, from $3.4 billion a year ago, driven by record earnings from explosives, earnings following the completion of Incitec’s Waggaman nitrogen plant and a resilient fertiliser division.
Incitec declared a final unfranked dividend of 4.9 cents per share, up from 4.6 cents a year ago.
The company said Mr Fazzino will step down from his role on Tuesday after eight years in the job.
He will be replaced by Jeanne Johns who has run major industrial and commodity based business in the United States, Asia and the United Kingdom.
Chairman Paul Brasher said Ms John, who will start in the role as early as Wednesday, will bring “valuable fresh perspectives" to all aspects of the business.
Incitec Pivot warned that its Gibson Island fertiliser plant in Queensland could close in less than 11 months time unless an affordable, secure supply of gas is found.
The looming expiry of a gas supply contract at Gibson Island and the expectation of high prices under the next contract has threatened the future of the operation, with
Incitec even trying unsuccessfully to secure upstream gas assets to solve the issue.
“The current gas supply arrangement for Gibson Island will cease on 30 September 2018 and if economically viable gas cannot be secured for the period commencing 1 October 2018, it is likely the facility will cease manufacturing operations,” Incitec warned in yesterday’s profit announcement and commentary.
The shares ended a rough day on the market with a nice gain of 4.8% to $3.92, after hitting a peak at $4.02.
