METS

Outages hit Incitec's bottom line

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 around 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 approximately 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 plunged 8.7% to $3.25.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

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

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

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.