Orica jumps on profit outlook

Group warns on volatile conditions, lifts full-year profit after writedowns of $247m skewed previous year's result.

Shares in chemicals company Orica Ltd have surged after the group said it was confident it would improve on its full-year profit from fiscal 2013, despite warning volatile conditions will add a greater degree of uncertainty to the trading environment in the year ahead.

At 1540 AEDT, Orica shares were 10.64% higher at $21.62, against a benchmark index fall of 0.43%.

In the year to September 30, Orica posted a net profit after tax of $$601.6 million, a 49.4% increase on $402.8 million in the previous corresponding period's result which was skewed by $247 million in writedowns.

Net profit before materially significant items was $601.6 million, a 7.5% decrease on the $650.2 million recorded in the previous corresponding period.

In the same period sales revenue was $6.989 billion, a three% increase on the previous year's $6.674 billion.

The group will pay a fully-franked final dividend of 55 cents on December 13 to shareholders on the register at November 25.

Combined with the group's interim dividend of 39 cents, of which 15 cents was franked, Orica's total dividend was 94 cents.

Orica said its strategy of promoting product and service differentiation had led to an increased contribution from mining services across its explosives business.