Incitec Pivot warns of A$36m earnings impact from weather

08 February 2011 11:09  [Source: ICIS news]

LONDON (ICIS)--Incitec Pivot has warned that the recent floods in eastern Australia and the effects of Cyclone Yasi are expected to reduce its earnings before interest and tax by Australian dollar (A$) 36m ($36.4m, €26.9m), the fertilizer producer said in a statement on Tuesday.

The impact of Cyclone Yasi included lost production at the fertilizer plant at Phosphate Hill and the associated acid plant at Mount Isa, which resulted from the plants being idled, Incitec Pivot said.

Incitec Pivot said the Phosphate Hill and Mount Isa plants were now back to normal operations.

Phosphate Hill has the capacity to produce 975,000 tonnes/year of diammonium phosphate (DAP) and monoammonium phosphate (MAP), while the Mount Isa plant has the capacity to produce 1m tonnes/year of sulphuric acid.

In addition, minor damage occurred to port facilities at Townsville and water damaged some fertilizer being stored at Townsville, the company said.

The cyclone also caused minor damage to a distribution centre at Townsville, while those at Cairns and Mackay were unaffected. The Townsville facilities are now operational, the statement said.

The company also noted that the cyclone followed two months of flooding in Queensland, New South Wales and Victoria, the combined impact of which affected sales for its Dyno Nobel Asia Pacific explosives business as well as the fertilizer business.

At the same time, the statement said the heavy rain had affected the construction schedule for the company's ammonium nitrate project at Moranbah, but that the project remains on track to start production by the end of March 2012.

($1 = A$0.99, €1 = A$1.34)

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By: Rebecca Clarke
+44 20 8652 3214

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