mid-cap

Why is Incitec Pivot’s share price down ?

Apr 03, 2016 | Team Kalkine

Read Time :5 MINS

Why is Incitec Pivot’s share price down ?

Incitec Pivot Ltd (ASX: IPL)

Industry: Materials

IPL Dividend Details

Gas supply agreements: IPL made a gas supply agreement related to its Phosphate Hill manufacturing plant located at North West Queensland, with Walloons Coal Seam Gas Company for two years starting from next year. The group even made a multi-asset gas transportation agreement with APA Group.
Stock performance: Despite the above update, IPL stock corrected by 5.6% on April 01, 2016 given the ongoing volatile commodity market coupled with Australian dollar fluctuation.
Other Positives: Management reported that they would be able to control costs by over $20 million per year for 2017 and 2018 to offset the impact from the challenging conditions to a certain extent.
Recommendation: We believe investors could leverage the correction in the stock and hence give a “BUY” on IPL at the current shares price of $3.01

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Mid-Cap