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ON the back of Incitec Pivot's (ASX: IPL) eight per cent rise in underlying full year profit, shares in the fertiliser and explosives maker have surged by more than six per cent to a new two year high.
Incitec Pivot lifted full year profit to $318.7 million, and announced it would embark on a $300 million on-market buyback.
Net profit for the year to September 30 more than doubled compared to the $128 million profit recorded for FY16. Last year, the company blamed disappointing results on lower global commodity and fertiliser prices.
Revenue also saw a healthy boost by 3.6 per cent to $3.5 billion for FY17. The increase was driven by record earnings from the group's explosives sector. Group revenue also saw a healthy contribution from the completion of Incitec's Waggaman nitrogen plant and a resilient fertiliser division.
The company declared a final unfranked dividend of 4.9 cents per share.
Chief executive and managing director of Incitec Pivot, James Fazzino, announced he will step down from his role after eight years in the position.
Fazzino will be replaced by Jeanne Johns, who has experience managing industrial and commodity based businesses in the United States, Asia, and the United Kingdom.
Speaking on Fazzino's resignation, group chairman Paul Brasher says he will leave a legacy.
"James leaves a legacy of a successful Company transformation and an embedded culture of continuous improvement," says Brasher.
"The Board and all the employees thank James for his leadership and commitment to IPL, and wish him the very best for the future."
At around 1.30pm (AEDST) IPL shares were up by more than seven per cent to $4.00, their highest price since December 2015.
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