Key points
- Orica secured ammonium nitrate supply for FY2027 in North America
- New infrastructure added with Nelson Brothers acquisition
- Land sale negotiations at Deer Park extended due to market conditions
Full summary
Orica has secured ammonium nitrate supply for its contracted customers in North America for FY2027, ensuring supply security and network resilience. Costs have increased, but margins are expected to remain unaffected due to logistics optimization and customer arrangements. The supply will come from US producers, Carseland plant, and the global supply network. The acquisition of Nelson Brothers adds valuable infrastructure. Negotiations for the sale of surplus land at Deer Park have been extended due to market changes, but this does not impact Orica's operations.
Guidance
No material impact on margins in FY2027 expected
Outlook
Orica expects to continue optimizing its network and strategic priorities, with further details to be provided in the full year results announcement.