Explosives and fertiliser maker Incitec Pivot is facing a steep reduction in gas supply at its ammonium nitrate plant in Queensland which could hit its profits.
The company says the joint venture that supplies gas to its Moranbah plant expects to reduce supply by between 10 and 20 per cent until sometime in 2016.
Incitec says that if there were to be a sustained and consistent 20 per cent fall in gas supply over a 12-month period, the company's net profit could suffer a $22 million hit.
It expects the impact on its net profit for fiscal 2015 could be up to $6 million.
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