METS

Plant outages hit Incitec profits, share price

International mining explosives and chemicals supplier Incitec Pivot says its full-year financial results will be impacted by unexpected plant outages.

Staff reporter
 Phosphate Hill in Queensland

Phosphate Hill in Queensland

Unplanned outages at Incitec's Louisiana and Phosphate Hill plants are expected to have a combined earnings before interest and tax impact of about A$45 million for the financial year ending September 30, 2019.

The Louisiana ammonia plant has been impacted by downtime caused by issues in the plant's carbon dioxide removal system.

Following an inspection of the equipment repair work is underway, which is expected to fully resolve the issues. The outage is expected to result in a reduction in production for FY19 of about 80,000 tonnes.

The EBIT impact of the outage, including repair costs, is estimated to be roughly $25 million.

Meanwhile, the Phosphate Hill facility in Queensland has been affected by a leak in its phosphoric acid plant.

The facility has resumed operation, but the estimated impact is a reduction of roughly 50,000t of ammonium phosphates for the current financial year.

The revised production target for FY19 is 950,000 tonnes. The EBIT impact is estimated to be around $20 million.

In November, Incitec reported full-year EBIT of $556.7 million, up 11.1% from a year earlier.

Incitec shares (ASX: IPL) plunged 8.7% to $3.25.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.