Review of Operations
Orica delivers a solid result and strong cash flow generation.
Statutory net profit after tax(NPAT) attributable to the shareholders of Orica for the full year ended 30 September 2016 was $342.8 million.
- Tragically, two fatalities occurred on 10 September 2016 as a result of an explosion at our packaged emulsion manufacturing plant in Chile
- Ammonium nitrate volumes at 3.54 million tonnes
- Net operating and investing cash flows(1) up 80% at $633 million, underpinned by the generation of operating cash, disciplined approach to capital expenditure(2) and continuing management of working capital
- Business improvement benefits of $76 million
- EBIT before individually material items(3) of $642 million
- NPAT before individually material items(4) of $389 million
- Significant reduction in net debt(5) to $1.5 billion; gearing(6) of 36%
- Final dividend of 29 cents per share. Full year payout ratio(7) of 48%, representing a combined dividend of 49.5 cents per share
(1) Equivalent to net cash flow from operating and investing activities (as disclosed in the Statement of Cash Flows within Annual Report) excluding net proceeds from the sale of Chemicals business.
(2) Comprises total payments for property, plant and equipment and intangibles as disclosed in the Statement of Cash Flows within Annual Report.
(3) EBIT (equivalent to Profit from operations in Note 16 within Annual Report) from continuing operations before individually material items.
(4) Equivalent to net profit for the period after income tax expense before individually material items attributable to shareholders of Orica Limited disclosed in note 16 within Annual Report.
(5) Total interest bearing liabilities less cash and cash equivalents as disclosed in note 3 within Annual Report.
(6) Net debt/(net debt + total equity) as disclosed in note 3 within Annual Report.
(7) Dividend amount for the year/NPAT before individually material items.