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General Information

Orica Limited
ORI
http://www.orica.com
Commodity Chemicals
7,118
371

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$19.21 $19.30 $19.32 $19.07 $19.30 1729031 $0.09 ( 0.47% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Hold
29/07/2015
2

Company Overview

Business Description
Orica Limited (ORI) is a manufacturer and supplier of industrial and specialty chemicals, commercial explosives and mining chemicals through over 50 countries. Orica’s products and services include mining services, mining and general chemicals and ground support services. Orica has a portfolio of manufacturing and distribution assets strategically located across Australia, New Zealand, Asia, Latin America and Africa.
Strategy Analysis
ORI´s main priorities are expansion of its ammonium nitrate (AN) manufacturing capacity in Australia, Indonesia and South America in order to take advantage of strong demand for explosives from the mining sector. Following the 2012 completion of the Bontang, Indonesia plant attention turns to Australia with a feasibility study underway to double capacity at Kooragang Island in NSW. ORI is also participating in a joint venture (45% share) to construct an AN plant in the in the Pilbara mining region in WA. A feasibility study is also underway into the construction of an AN plant in Peru. These expansion plans should result in strong growth over the next few years as demand from the mining industry continues to grow. In Minova, the key strategy is to try to improve returns from this underperforming business through simplifying the business model, optimisation of manufacturing and overhead rationalisation. Orica reported NPAT down 37.3% to $402.8m for the year ended 30 September 2012. Revenues from ordinary activities were $6.67bn, up 8.0% from last year. Diluted EPS was 109.1 cents compared to 169.8 cents last year. Net operating cash flow was $544.1m compared to $758.2m last year. The final dividend declared was 54 cents, taking the full year dividend to 92 cents compared with 90 cents last year.

Financial Summary

Year to Sep NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 515.9 142.6 0.0% 13.5 96.0 5.0% 45.0%
2015 F 528.8 142.6 -12.7% 13.5 96.0 5.0% 45.0%
2014 A 602.5 163.4 0.5% 13.2 96.0 4.4% 37.5%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Orica (ORI) $7,151M -0.0210 -0.1508 0.1799 11.8137 13.9109 11.7899 4.97% 4.72% 4.97%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.64 13.40 1.68 0.00
Market 0.89 16.20 1.33 1.33
Sector 0.64 11.90 0.67 0.34

Directors

Name Position Start Date
Dr Alberto Calderon Chief Executive Officer, Managing Director 14/08/2013
Mr Russell Ronald Caplan Non-Executive Chairman 01/10/2007
Dr Nora Lia Scheinkestel Non-Executive Director 01/08/2006
Mr Gene Thomas Tilbrook Non-Executive Director 14/08/2013
Mr Ian David Cockerill Non-Executive Director 12/07/2010
Mr Lim Chee Onn Non-Executive Director 12/07/2010
Ms Maxine Nicole Brenner Non-Executive Director 08/04/2013

Management

Name Position
Chris Hansen Company Secretary
Gavin Jackman Executive Global Head Corporate Affairs and Social Responsibility
Eileen Burnett - Kant Executive Global Head Human Resources
Nick Bowen Executive Global Head Mining Services
Richard Hoggard Executive Global Head of Manufacturing
Ron Douglas Executive Global Head Projects and Technology
Andrew Larke Executive Global Head Strategy and Chemicals
Tony Edmundstone Executive Global Head Supply

Substantial Shareholders

Holding Name
47,453,544 (12.79%) Harris Associates L P
23,250,167 (6.24%) Schroder Investment Management Australia Limited
21,885,573 (5.87%) M & G Investment Management Limited

Calendar of Events

Date Event
10 May 2016 Report (Interim)
11 December 2015 Report (Annual)
18 November 2015 Report (Annual)
18 November 2015 Report (Prelim)
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