Incitec Pivot reported FY16 NPAT of $295m.
Moranbah production remains strong with output hitting a new record. The Louisiana plant will come in below budget. Any new capital management will be contingent on better fertiliser prices and reliable output from the new Louisiana plant.
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With gearing likely to begin falling over the next 12 months we may see capital management in Fy18 or FY19.
FY17 we see revenue increasing to $3.8b, EBIT increasing 10% to $490m, EPS of $0.18 and DPS of $0.11, placing the stock on a forward yield of 3.5%
IPL has struggled with difficult industry conditions over the past 18 months, the tide may be turning but we will wait for a higher low formation from the algorithm engine before setting up new buying levels.
Ross Morrison says:
I think that this industry is heading for growth and increased consumption of sprays.