The world’s biggest maker of commercial explosives has escaped supply issues impacting other companies due to the Middle East crisis, so far.
Melbourne-based Orica is entering the second half of its financial year in good shape, due to robust demand for its products, which include blasting systems and chemicals for the mining industry.
Orica made a net profit, excluding significant items, of $283.1 million in the first half, up eight per cent.
Underlying pre-tax earnings came in at $512 million, up five per cent for the six months ended March, on revenue of $3.9 billion.
That’s its highest underlying result in more than 20 years.
“We have delivered record earnings in the first half, driven by strong demand for premium products and advanced technology offerings, robust gold and copper markets,” chief executive Sanjeev Gandhi said on Thursday.
The company said that because its materials are “generally” not transported through the Strait of Hormuz, it’s not experiencing any immediate supply concerns.
The Strait has been closed for weeks, as the United States attempts to negotiate a peace deal with Iran, which was bombed by America in late February.
The crisis has negatively impacted multiple Australian-listed companies and driven up fuel prices, given that the shipping channel is a thoroughfare for about 20 per cent of the world’s crude oil supplies.
Orica is also a significant consumer of gas, which it uses to make explosives.
Orica will pay shareholders an interim dividend of 28.5 cents per share, up 14 per cent from the same time last year.
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