Investing.com – Instic Pivot Ltd (ASX:) announced its results for the first half of 2024. EBITDA reached $249 million, beating RBC's forecast of $207 million and the consensus estimate of $206 million. However, comparing these numbers directly with market estimates is challenging due to the impact of restructuring, non-recurring operations and discontinued operations. The company announced an ordinary dividend of 4.3 cents per share, supplemented by a special dividend of 10.2 cents per share.
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the main ideas:
• Future Outlook: The company maintains a positive outlook for FY24, with Dyno Nobel's earnings forecast remaining unchanged. Dyno Noble Asia Pacific (DNA) expects EBITDA to grow in the mid-to-high single digits, while Dyno Noble Americas (DNAP) expects EBITDA to exceed its previous record as the recontract process nears completion.
• Fertilizer sales update: Advanced negotiations with PT Pupuk Kalimantan Timur for cash consideration are ongoing. However, there is no guarantee that an agreement will be reached or a sale will be completed. As a result, an expected buyback of up to $900 million remains pending.
• Fertilizers: The Fertilizers segment generated EBIT of $10 million, down 91% year-over-year, with margins down 9%. Despite increasing margins, market growth in the distribution business and lower gas costs from FY2023, risks remain. An after-tax impairment charge of $408 million was also included as a single material item (IMI(LON:)).
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• Dyno Noble Asia Pacific: The segment recorded EBIT of US$108 million, up 36% year-on-year, with margins improving by 4%. The increase in EBIT was driven by successful recontracting, BMA expansion, growth in technology, and opportunities in EMEA through the Titonobel business.
• Dyno Noble Americas: The Americas segment reported EBIT of $154 million, down 61% year over year, with margins down 14%. However, growth in the metals and Chile segment, improving prices, and cost maintenance contributed to margin improvement. The result also benefited from increased manufacturing reliability and the purchasing agreement from WALA.