Australia's Orica falls as Citi trims PT, earnings forecast on Kooragang shutdown

ORICA

25/09/2023 01:49

** Analysts at Citi trim FY24 earnings est for Australia's 
Orica  ORI.AX  due to Kooragang facility shutdown, trim PT to
A$17 from A$17.45
    ** ORI shares fall as much as 1.8% to A$15.150
    ** Citi says co's key Kooragang Island facility's major
turnaround planned for 1H FY24 comes at a time when explosives
volumes and prices are expected to rise
    ** Brokerage notes the mining and infrastructure solutions
provider's ammonia plant will be offline for around 8-9 weeks
during the turnaround
    ** We think the turnaround will likely necessitate some
ammonium nitrate imports by Kooragang in FY24 to supply market
demand and we estimate the loss on manufacturing margin to be
around A$15 mln - Citi
    ** Citi cuts its FY24 underlying EBIT est by 4%
    ** Eleven of 13 analysts rate ORI "buy" or higher, one
"hold" and one "sell"; their median PT is A$17.80 - LSEG data
    ** As of last close, stock up 1.1% this year

    

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))