Why the Incitec (ASX:IPL) share price is in the spotlight today

The Incitec (ASX: IPL) share price will be in focus today after the company announced a supply agreement.
The post Why the Incitec (ASX:IPL) share price is in the spotlight today appeared first on The Motley Fool Australia. –

ASX share price on watch represented by man looking through magnifying glass

The Incitec Pivot Ltd (ASX: IPL) share price will be in focus this morning. This comes after the company announced an off-take agreement with Perdaman Chemicals and Fertilisers Pty Ltd (Perdaman).

The Incitec share price was trading at $2.65 at the market close yesterday.

What did Incitec Pivot announce?

This morning, Incitec Pivot advised its wholly-owned subsidiary Incitec Fertilisers has entered into an off-take agreement with Perdaman to receive granular urea fertiliser. The 20-year agreement will see up to 2.3 million tonnes per year of urea from Perdaman’s proposed urea plant at Karratha in Western Australia.

The agreement is subject to several requirements before the deal is formally executed. Incitec noted that the most important condition was on Perdaman securing finance to build its new plant.

Should everything go to plan, the offtake agreement will provide Incitec with a long-term domestic supply of urea. This will enable the company to target Australian consumption as well as expand sales into global markets.

Incitec Pivot managing director and CEO Jeanne Johns commented:

The investment by Perdaman in a new, world-scale plant will make it one of the most energy efficient plants in the world utilising low emissions technology.

We are pleased to support such a significant domestic manufacturing project that will use Australian gas to produce urea fertiliser, essential for our Australian and international agricultural markets.

More on Perdaman

Founded in 2006, Perdaman is a West Australian-based multinational group that specialises in a range of markets. This includes fertiliser production to help farmers produce crops, ownership and management of shopping centres, production and distribution of pharmaceuticals, recruitment services and advanced energy solutions.

Its chemicals and fertilisers business focuses on the production of urea, the most commonly traded nitrogenous fertiliser. Urea is non-toxic and contains safe, high nitrogen content that can be easily transported and stored.

Incitec share price review

In 2021, Incitec shares have lifted to record a gain of 16%. The company share price reached a 52-week high of $2.98 in late March.

On valuation grounds, Incitec Pivot commands a market capitalisation of around $5.1 billion, with close to 2 billion shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Incitec (ASX:IPL) share price is in the spotlight today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!