However, this figure when considered before individually material items was down 7% compared to the previous corresponding period.
The company said group net profit after tax and before individually material items in 2014 was expected to exceed 2013, although volatile market conditions had added a greater degree of uncertainty.
Earnings before interest, tax, depreciation and amortisation marginally for financial 2013 were down marginally versus the previous year at $1.3 billion while net operating cash flows increased 95% to $1 billion.
“The strategy of promoting product and service differentiation has led to an increased contribution form mining services across its explosives markets,” the company said.
“Mining chemical products improved on the back of better plant performance.”
However, weakness in demand and pricing for ground support products and services, combined with higher depreciation and lower asset sales, has eroded the benefit of a stronger contribution from explosives and mining chemical products and services.
Earnings before interest and tax were down 2% in the mining services business to $993 million while earnings from the chemicals division slipped 8% to $92 million on subdued conditions across most industrial markets in Australia and New Zealand.
For the broader Australia-Pacific region, however, total earnings before interest and tax were up 20% compared to a year ago to $623 million. Orica cited a 67% increase in volumes in the Pilbara and an 18% increase in volumes in the South East region.
Orica also marked strong growth in its electronic blasting systems business with volumes up 11%.
However, lower demand in most explosives markets – excluding the Pilbara, the Commonwealth of Independent States and Africa – is expected to continue in 2014.
The company has forecast continued pricing pressure and challenging business conditions in most industrial markets.
This impact is expected to be offset by efficiency gains and the provision of higher value customer offerings.
Shares in Orica stood today at $19.54.
