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$3.13 incitec pivot limited

Ann: Incident at Waggaman Ammonia Plant, page-5

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completelybroke

1,617 Posts.

96

25/02/22

12:32

Post #: 59821650
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Originally posted by Idle Wanderer: ↑

I reckon IPL has made a rod for their own backs with the way they provide guidance for their plants:
1. Except for scheduled maintenance, all their plants are expected to run at nameplate 24/7/365.
2. But of course big complex chemical plants like Waggaman occasionally have interruptions like machinery failures or hurricane preparedness.
3. So when an interruption occurs, after it is fixed IPL then publish a "cost" for the interruption, in $Millions, referenced to what the nameplate output would have been.
This is just bad PR. IPL should calculate a sensible annual expected 'up time' for each of their plants, say [just plucking a number] 93% of theoretical nameplate. Then when there is an interruption, of say 3% of annual loss due to a mechanical failure, followed by a 2.5% annual loss of output due to a hurricane precautionary shutdown, then at the end of the year the plant would still be tracking 1.5% ahead of expectations for that year. The plant has still produced the same output but the PR and share price fallout would be a lot less than what happens now by referencing to a benchmark that can be met in only the most favourable circumstances.

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Genuinely iterested....where have they provided guidance based on 100% uptime?

IPL Price at posting: $3.06 Sentiment: Hold Disclosure: Held
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