Incitec Pivot (ASX:IPL)
increased its first half earnings after seeing a "strong commodity environment" during the financial year despite inflationary pressures.
The chemical fertiliser business reported a net profit after tax of $384 million, an increase of $348 million from the prior year period, while its earnings before interest and tax (EBIT) reached $568 million, an increase of $458 million. Earnings per share rose to 19.8 cents per share, an increase of 17.9 cents.
EBIT in its Asia-Pacific fertiliser business increased to $257 million, from $20 million in the prior year period as the company captured the upswing in commodity prices.
“Our record first half result reflects the quality of our two category leading businesses and our sharp focus on executing in a high demand, highly disrupted market,” said chief executive officer, Jeanne Johns
“This has enabled us to capture the very strong commodity price environment and foreign exchange tailwinds, as well as successfully manage inflationary pressures and supply chain disruptions. Our supply chain teams in both the Americas and Australia have done an outstanding job in responding to these challenges.”
An interim dividend of 10 cents per share will be paid on July 5.
Separately, the company announced that it intends to implement a structural separation of its fertilisers and Dyno Nobel businesses to create two separately listed companies on the ASX.
Shares in Incitec Pivot (ASX:IPL)
last traded at $3.74 on Friday.