Incitec facing tough times

18 Jan, 2013 09:33 AM

SHARES in fertiliser and explosives company Incitec Pivot hovered around $3.18 on Thursday after Citi downgraded its rating to "sell", pushing down its share price 1.6 per cent.

Citi said despite expectations of high grain prices and a modest recovery in US gas prices, there would be no reprieve from tough conditions facing Incitec in the past six months.

It forecasted a 10 per cent decline in the company's 2013 earnings, with lower global fertilizer prices, currency headwinds and lower US coal production offsetting the benefits of its ammonium nitrate plant project at Moranbah, Queensland.

The plant is expected to produce 250,000 tonnes of ammonium nitrate this financial year. The company's net profit after tax was $510.7 million in 2011-12. It is increasing its strategic focus on its explosives business, which now makes up 60 per cent of its earnings and grew 8 per cent in comparison to its fertiliser business, which declined 40 per cent.

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Hick from the Sticks
18/01/2013 12:14:59 PM

Its hard to feel sorry for the blood sucking leeches running this show. After creating a shortage of nitrogen for eastern states croppers when they restricted anhydrous ammonia useage at sowing in 2012. It would have been reasonable to expect they would have enough urea for spring application but no they create a artificial shortage so despite world urea prices tanking to below $390/t in July and August and world shipping rates hitting there lowest level since 1986, they stuck it to us charging $650 / t if you could get any.
18/01/2013 5:43:39 PM

Couldn't agree with you more! Don't forget the gouging we got when grain prices rose last time. I was paying $1200 per tonne for urea just because they could. I boycot them if possible and I suggest the rest of us do the same. Why not try some of the smaller players, I know they follow along with Incitec but they are not the drivers of this market manipulation.
19/01/2013 7:23:10 AM

for me it is hard to feel sorry for the winging farmers because as a farmer and pivot agent I tried my best to tell the farmers not to sell out that this would be the end result ,but no they wanted to sell their shares no matter what .Dont complain now you got what you wanted and can never recover what our forfathers [men of vision]set up so live with it.My real question how did it get through to allow a monopoly ? Who got the pay out behind it all?Did the farmers learn from this NO !! All of the structures set up by the same men of vision, because of need, are gone or going.Australia bye-bye
19/01/2013 7:30:48 AM

exactly Hick. theyve made a squillion off us, now they can suffer with us a bit. they'll find sympathy in a dictionary between snot and syphyllis
19/01/2013 1:29:46 PM

des61143 You are a fool, a lot of new farmers like me have had no pivot shares to sell we are just slapped with outrages prices.Just before the GFC i remember 1200ton for urea wich is just unafordable.I hope they go broke along with some of the seed companys corn $350 for a 25kg bag that is outrages.Before you label all farmers wingers do your figures and see how many farmers had shares in this company.
Love the country
19/01/2013 6:00:13 PM

Yep same as grain growers, a few wanted the end of AWB, in W.A. wheat piled up at heaps of bins,and, it's last years,now add, this years 2012 wheat, next question, what happens if the state gets a good season in 2013, god help us farmers with storage, it never happened ever with AWB, it's a major stuff up.our forefathers new what was best, formed AWB and the young ones destroyed it .so same logic as the fertiliser group.


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