Nuplex raises interim after strong first half

WELLINGTON - Chemical company Nuplex's profit rose 65 per cent to $9.1 million in the December half year, leading its directors to raise the interim dividend from 5.5c a share to a fully imputed 8c a share.

However, they have also warned that as oil price rises are affecting raw material costs, earnings in the current half may not be quite as strong.

The latest profit was after providing tax of $5.8 million, up from $3.7 million, a $1.5 million goodwill writeoff, $4.5 million in interest expenses and $6.1 million for depreciation.

The company's depreciation charges include $672,000 of accelerated depreciation on waste-processing assets, which are to be replaced later in the year.

The higher profit means earnings per share rose from 10.1c to 16.4c, with the major contributing factor the Australian operation, which directors say has benefited from recent acquisitions and productivity improvements.

The 5 per cent depreciation of the kiwi dollar against the Australian over the period also contributed to the increase in returns, as the accounts are reported in currency.

Directors say the strong demand for the group's products and services is expected to continue through the present half. - NZPA