By Rhiannon Hoyle

Explosives and chemicals maker Orica raised its interim dividend after its first-half loss narrowedon lower one-time charges than a year earlier and higher underlying earnings.

Orica said Thursday that it made a net loss of 600,000 Australian dollars (US$434,220) for the six months through March, from a loss of A$89.0 million a year earlier.

Directors declared an interim dividend of 28.5 Australian cents a share, representing a payout ratio of 47% of profit before significant items, the company said. A year ago, Orica declared an interim dividend of 25 Australian cents a share, a 49% payout.

Profit before significant items totaled A$283.1 million, up 8% on a year ago.

The company reported significant items totaling A$283.7 million, mostly related to previously flagged litigation costs, supply disruption and restructuring expenses. A year earlier, one-time charges totaled A$339.8 million.

Earnings before interest and tax, or Ebit, increased by 5% to A$512.0 million. Earnings increased in the company's chemicals and digital solutions businesses, but were broadly flat in its blasting solutions division, Orica said.

The company in March forecast "slightly higher" Ebit in its first half year over year.

At the time, it reported strong customer demand for sodium cyanide from producers of gold, prices for which surged to a record high earlier this year. Strong gold and copper markets were also supporting increased adoption of its digital solutions products, Orica said.

However, the company cautioned that a rising Australian dollar and lower Indonesian coal production quotas were expected to weigh on earnings in its blasting solutions business.

Turning to the outlook on Thursday, Orica said it expects annual underlying Ebit to increase across all business units and regions. It expects depreciation and amortisation to be at the lower end of a A$520 million to A$540 million range.

Orica said it isn't currently experiencing any immediate material constraints related to the conflict in the Middle East. The company said its products, whether inputs or components, generally aren't transported through the Strait of Hormuz.

"We enter the second half with good momentum, demand remains robust and our outlook remains positive," Chief Executive Sanjeev Gandhi said.

Orica in March said it had begun a cost-cutting effort to save at least A$100 million in annual spending. It said it wanted "an enduring step change in the cost base of the business, to best position the company for the next phase of sustained profitable growth."

The company has in recent years been diversifying its operations to grow beyond its core blasting operations in specialty chemicals and digital technologies. Last month, it said it had expanded its speciality mining chemicals business into copper with the acquisition of Danafloat from Philadelphia-based FMC.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

May 06, 2026 18:33 ET (22:33 GMT)

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