Orica lifts dividend payout despite soft earnings EXPLOSIVES maker Orica has warned of tough times ahead but believes it can increase full-year profit after a slip in underlying profits in 2012-13. The company said full-year profit rose to $602 million, up from $403m the year before but down from $650m when significant items were stripped out. The company announced a fully franked final dividend of 55c per share, taking the full year dividend to 94c, up 2c, or 2 per cent, from last year. The result was in line with expectations but shares jumped $1.30, or 6.7 per cent, to $20.84 in early trading on this year's guidance. There is also evidence the company's strategy of maintaining profit margins by offering higher-value products is working, despite miners trying to squeeze as much out of contractors as they can. Orica said subdued explosive demand in most global markets, except for Western Australia's Pilbara region, the former USSR and Africa, would be a feature of 2014. Net profit after tax before individually material items in 2014 is expected to exceed 2013, however volatile market conditions add a greater degree of uncertainty. Pricing pressure was expected to continue but the impact on margins should be offset by efficiency gains and higher-value product offerings, Orica said. The company said it had signed a three-year gas sales agreement with Exxon Mobil and BHP Billiton to buy up to 42 petajoules of gas a year from Bass Strait at oil-linked prices. Orica said the pricing was competitive.