The Incitec Pivot Ltd (ASX: IPL) share price is seeing red today. This comes after an incident at the company’s ammonia plant in the United States.
At the time of writing, Incitec Pivot shares are trading 5.83% lower at $3.07 apiece.
So what did the industrial chemicals and fertiliser manufacturer announce? Let’s find out…
Plant operations halted
In a brief announcement released to the ASX this morning, Incitec Pivot disclosed a release of hydrogen from its Waggaman ammonia plant in Louisiana, US.
Operations at the plant have paused while the company conducts necessary investigations.
First and foremost, Incitec Pivot has found “no chemical releases to the environment or any offsite impacts” from the event.
The company also assured that no personnel had been physically injured.
It is now focused on searching for the cause of the hydrogen release. Once obtained, a re-start date will be established and released to investors.
Incitec Pivot share price snapshot
Over the last 12 months, the Incitec Pivot share price has increased by almost 20%. However, it is down around 12% over the past month and 5% this year to date.
Shares crumbled to a 52-week-low of $2.21 in May last year not long after the company released its previous half-year results.
However, shares climbed to a high of $3.67 last month, following the company’s announcement that it was to acquire an explosives manufacturer.
This news was also greeted positively by analysts at Morgan Stanley, who retained their overweight rating and $4.30 price target.
The company has a market capitalisation of $6.33 billion. It has a price-to-earnings (P/E) ratio of 42.02 and a dividend yield of 2.87%.
The post Why is the Incitec Pivot (ASX:IPL) share price sinking 6% today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.
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