The Om Holdings Limited (ASX: OMH) share price lifted today amid a huge jump in profit.
The manganese and silicon smelting company's share price lifted 7.46% to 72 cents. In contrast, the
All Ordinaries Index (ASX: XAO) dropped 2.07% today.
Let's take a look at what this ASX All Ords share reported to the market.
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Om Holdings net profit surges
Highlights of Om Holdings' half-year results include:
- Net profit after tax (NPAT) exploded 231% on H121 to US$60 million
- Earnings per share lifted nearly 268% from 1.82 cents to 6.69 cents
- Revenue of US$466.7 million, up 35% on H121
- Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 114.8% to US$104.6 million
- Consolidated cash lifted to US$82.8 million
What else did this ASX All Ords share report?
Om Holdings achieved a gross profit margin of 27.7% in the first half of 2022, up from 19% in H121.
The company's revenue and gross profit margins were higher despite fewer products being sold compared to H121.
Underpinning the strong financial result was stronger prices for manganese ores, ferrosilicon and silicomanganese alloys.
The company also reduced its debt to equity ratio from 0.67 times at 31 December last year to 0.54 at 30 June.
The company's OM Sarawak smelter is forecast to produce between 340,000 to 360,000 tonnes of ferroalloys by the end of the year.
Management commentary
Commenting on the results, CEO and executive chairman Low Ngee Tong said:
I would like to commend and thank all staff, especially our team on the ground in Sarawak, on delivering an outstanding set of results for the first 6-months of 2022.
Despite pandemic related workforce challenges and the fluid working environment in a year of furnace conversion and major maintenance, we have delivered operationally and the Group has been able to post very robust financial results.
Om Holdings share price snapshot
The Om Holdings share price has surged more than 15% in the past 12 months, but it has lost 20% year to date.
For perspective, the All Ordinaries Index has fallen 7.3% in the past year and 7.53% year to date.
Om Holdings has a market capitalisation of about $531.8 million based on the current share price.
