Incitec Says Fertilizer Plant Resumes Operations

By Madelene Pearson

July 15 (Bloomberg) -- Incitec Pivot Ltd., Australia's largest fertilizer maker, said its ammonium phosphate plant in Queensland state returned to operations after repairs that cost less than forecast and were completed ahead of schedule.

Loss of production and the cost of repairs is estimated to cut net income by about A$49 million ($48 million), Melbourne- based Incitec said today in a statement. The company said June 19 repairs may take a month and cut profit as much as A$58 million.

Incitec has more than doubled in the past year as soaring global demand for crop nutrients driven by China pushed fertilizer prices to records, boosting profits for producers. The company was forced to close its Phosphate Hill plant to repair an acid reaction tank, a key part of the production process.

``It's positive coming in A$9 million less than they advised and a week or so early,'' said Hugh Dive, who helps manage $5 billion at Investors Mutual Ltd. in Sydney, including Incitec shares. ``These tons are export tons, because of the time of the year, that are being sold up into Asia when the market is looking tighter.''

Incitec rose as much as A$6.21, or 3.5 percent, to A$184.21 on the exchange and traded at A$181.44 at 12:33 p.m. Sydney time. The stock closed at a record A$199.70 on June 19.

The company may have net income of A$559 million in the year ending Sept. 30, according to the median estimate of seven analysts complied by Bloomberg.

``Working around the clock, Incitec staff and contractors had the plant restored to full operation sooner than anticipated,'' Julian Segal, chief executive officer, said in the statement to the Australian stock exchange.

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net