Explosives and fertiliser maker Incitec Pivot is looking forward to a weak Australian dollar to help it overcome challenging conditions ahead.
Managing director James Fazzino said he expects challenging market conditions for resources and agricultural industries to persist but added that the company and its customers would benefit from a weaker local currency.
"While soft commodity prices have fallen a little, the great news for Australian farmers is the dollar's dropped," Mr Fazzino told reporters on a conference call on Tuesday.
"That makes Australian farming much more competitive and hopefully means returns from Australian farming are higher and if our customers are making more money then we share in some of that."
The company increased full year net profit 12 per cent to $398.6 million, up from $356.3 million thanks to stronger earnings from its Australian fertiliser business and a weaker Australian dollar.
It also increased its total dividend to 11.8 cents per share, up from 10.8 cents previously.
But Incitec's shares were under pressure on Tuesday after the company said low commodities prices, subdued demand and predicted overcapacity would affect the Australian explosives market in the months ahead.
Market conditions in coal and metals are expected to remain challenging into next year, the company said.
However, Mr Fazzino said he expects this to be balanced through improvements in productivity and manufacturing reliability.
Production volumes in the company's agriculture and industrial chemicals area are expected to be in line with 2015 and the Phosphate Hill fertilisers operation is anticipated to produce at 85 per cent of capacity through to March.
Mr Fazzino expects the Phosphate Hill plant to produce more than one million tonnes next year.
The company said it did not provide profit forecasts for 2016 due to the variability of global fertiliser prices and foreign exchange movements.
Total revenue increased nine per cent to $3.64 billion, up from $3.5 billion the previous year.
The company said higher fertiliser revenue reflected a positive impact of higher global fertiliser prices in Australian dollars.
The local currency is trading at 70.43 US cents, down 14 per cent for the year.
Corporate costs are expected to be in the range of $22 million to $24 million in 2016.
Net debt increased by 13 per cent to $1.3 billion during full year 2015.
Shares in the company were six cents, or 1.6 per cent, lower at $3.73.
Share
