Orica Ltd's stock surged 6.17% during intraday trading on Thursday, following the release of the company's first-half financial results which showed significant improvement and a positive business outlook.

The explosives and chemicals maker reported a narrowed first-half net loss of A$600,000, compared to a loss of A$89.0 million a year earlier. More importantly, profit before significant items rose 8% year-over-year to A$283.1 million, while earnings before interest and tax (EBIT) increased by 5% to A$512.0 million. The company also raised its interim dividend to 28.5 Australian cents per share, up from 25 cents a year ago.

Orica provided an optimistic outlook, stating it expects annual underlying EBIT to increase across all business segments and regions. The company cited strong customer demand for sodium cyanide from gold producers and robust gold and copper markets supporting its digital solutions products. Additionally, Orica confirmed it is not experiencing any immediate material constraints related to the conflict in the Middle East, alleviating potential supply chain concerns.