InvestSMART

Orica Limited (ASX:ORI)

ALERT: Price-sensitive ASX Announcement for ORI
Current share price for ORI : $22.910 0.06 (0.26%)+
Announcement
Release
28 Sep 2026 8:28AM
Price at Release
$22.850
Full Release
download
Summary
Orica announced that it has secured ammonium nitrate supply for its contracted North American customers for FY2027, drawing from US-based producers, higher volumes from its Carseland plant in Canada, and its wider North American and global supply network, which the company said strengthens supply security and network resilience. Although sourcing costs have risen, Orica expects no material impact on FY2027 margins due to logistics optimisation, cost reduction initiatives and customer arrangements. The company also noted that the acquisition of Nelson Brothers’ US explosives business has added useful infrastructure and that it will continue to optimise and diversify its North American supply network through FY2027 and beyond. Separately, Orica said negotiations to sell surplus land at Deer Park, Victoria, will now extend beyond the previously indicated FY2026 timing for contract exchange because of changing market conditions, though this delay does not affect underlying operations. Management said the broader business remains strong, with a solid balance sheet and liquidity position, and indicated that further details, including FY2027 outlook, would be provided at the full year results announcement in November.
Key Points
  • Orica secured ammonium nitrate supply for contracted North American customers for FY2027.
  • Supply will come from US-based producers, increased production at the Carseland plant in Canada, and Orica’s broader supply network.
  • Higher sourcing costs are not expected to materially affect FY2027 margins due to logistics optimisation, cost-out initiatives and customer arrangements.
  • The Nelson Brothers explosives business acquisition has strengthened Orica’s North American manufacturing and supply infrastructure.
  • Orica plans to continue optimising and diversifying its North American supply network through FY2027 and beyond.
  • The sale process for surplus land at Deer Park, Victoria, has been delayed beyond the previously indicated FY2026 contract exchange timing due to market conditions.
  • The Deer Park land sale timing change does not affect Orica’s underlying business operations.
  • Orica said the broader business is performing strongly and that it maintains a strong balance sheet and liquidity position.
  • Further details, including an outlook for 2027, are expected at Orica’s full year results announcement in November.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.