By Digifin Pty Ltd · About this coverage
Key Points
- Sourced ammonium nitrate for contracted North American customers for FY2027
- Does not expect a material FY2027 margin impact despite higher sourcing costs
- Deer Park surplus land sale negotiations extend beyond indicated FY2026 timing
- Says Danafloat and Nelson Brothers integrations are complete
- 2027 outlook to be provided with November full-year results
About Orica (ASX:ORI)
Orica Limited is an ASX-listed mining and infrastructure solutions company in the Materials sector, headquartered in Melbourne. It manufactures and supplies commercial explosives, blasting systems, specialty chemicals and related services to mining, quarry, construction and oil and gas customers worldwide.
Orica (ASX:ORI) said it has sourced ammonium nitrate supply for contracted customers in North America for FY2027, and that negotiations to sell surplus land at Deer Park, Victoria, will extend beyond the previously indicated FY2026 timing for contract exchange.
While sourcing costs have increased, Orica does not expect a material impact on margins in FY2027, citing logistics cost optimisation, cost-out initiatives and customer arrangements. Ammonium nitrate will be sourced from US-based producers, increased volumes at the Carseland plant in Canada, and Orica's North American and global supply network. The company says it has added infrastructure through the acquisition of Nelson Brothers' US explosives business and will continue to optimise and diversify its North American supply network through FY2027 and beyond. The Deer Park delay is attributed to changes in market conditions; Orica says it will keep assessing an orderly sale and other property portfolio opportunities, and that the timing change does not affect underlying operations. Managing Director and CEO Sanjeev Gandhi said integration of Danafloat and Nelson Brothers is complete, the organisation-wide cost reduction program is progressing, and the broader business continues to perform in line with expectations, with a 2027 outlook to be given at the November full-year results.
The release does not quantify supply volumes, cost increases, margin effects or expected Deer Park sale proceeds.
Source: Orica Limited (ASX:ORI), 28 September 2026. Summary content supplied by Digifin Pty Ltd.
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