What Happened to Incitec Pivot Ltd’s Share Price?
Shares in fertiliser and explosives maker Incitec Pivot Ltd [ASX:IPL] shot up today, gaining nearly 5.5% to extend October’s rally. Today’s price action pushes CSR’s year-to-date capital growth beyond 15%.
Why Did This Happen to IPL Shares?
Posting its full-year result today, Incitec Pivot said net profit shrank by 33% to $241 million. However, excluding impairment and restructuring charges, earnings actually grew by 21%. Improved plant reliability and cost cutting buoyed the market. After signing a new gas supply deal, investors saw enough bright spots in Incitec Pivot’s future to mark the shares up today.
What Now for Incitec Pivot Ltd?
It appears a good sign that Incitec Pivot can raise its dividend in the face of falling earnings. Management seems confident that the company can push through tough market conditions. Any uptick in the mining and agriculture sectors could see this stock’s value surge.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
Join Money Morning on Google+
The post Why the Incitec Pivot Ltd Share Price Soared Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
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