Orica Says Plant Closures to Have Bigger Impact on Earnings
Orica Ltd. (ORI), the world’s largest industrial explosives maker, said the shutdowns at its Kooragang Island plant may cost 80 percent more than estimated because of restart delays.
The closures of ammonia and ammonium nitrate facilities are estimated to have cut A$90 million ($97 million) from earnings before interest and tax, the Melbourne-based company said today in a statement. That compares with its Dec. 15 estimate of as much as A$50 million. Orica still expects to post higher net income for the year ending Sept. 30, it said.
Orica resumed ammonia production this week, Nicole Ekert, a company spokeswoman, said by phone today. The company shut the ammonia plant in August following a chemical leak. Output of ammonium nitrate resumed in December after the plant was halted following a vapor release in November. The stock gained 0.5 percent to A$26.55 at 10:06 a.m. in Sydney.
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