Israel Chemicals Ltd today reported significantly improved second-quarter results and announced a new organizational structure. Net income rose 77% to $101 million and adjusted EBITDA was 18% higher at $296 million. Sales advanced 4% to $1.37 billion. The company recorded strong performance across all its business lines with growth and profitability supported by higher prices throughout its value chains, as well as higher volumes of bromine and derivatives, specialty fertilizers, and specialty phosphates.
Raviv Zoller, ICL’s new CEO, said the results exceeded management expectations following record-breaking performance in June of its bromine and phosphate value chains. “The company’s growth and profitability during the quarter are attributable to improving market conditions and cost controls, as well as the company’s ongoing efforts to optimize potash production and to implement a value-oriented sales approach in our bromine and phosphate value chains.”
Zoller also unveiled a reorganization to align with ICL’s strategy launched earlier this year. The company’s operations will be split into four business divisions: industrial products, covering bromine and derivatives; potash; phosphate solutions; and innovative ag solutions. The new structure will enter into effect by the end of August.
“As part of our strategy, we intend to strengthen leadership positions in all of our core value chains. We also plan to build and diversify our offerings of innovative agro solutions by leveraging ICL’s existing capabilities and agronomic know-how, as well as the Israeli technological ecosystem.” The new structure will allow ICL to further streamline its business and make the contributions of each segment more transparent, he said.
All four segments reported higher sales and operating profits. Second-quarter potash sales were 10% higher at $346 million, with operating profit advancing from $61 million in the second quarter of 2017 to $76 million in the last quarter. Sales of phosphate solutions were up 6.5% to $540 million and operating profit 48.6% higher at $55 million. Industrial products registered a 13.7% rise in sales to $331 million and a 23.7% hike in operating profit to $94 million. Innovative ag solutions sales were 11.6% higher at $212 million, with operating profit up 21.0% to $23 million.
By Natasha Alperowicz
Source: Chemical Week
OMV AG and the European Climate, Infrastructure and Environment Executive Agency (CINEA) have signed a grant agreement for OMV’s planned industrial ReOil plant, securing up to €81.6 million funding. This marks the first time that OMV receives a grant from the EU Innovation Fund.
Vopak has previously committed investment of up to €1 billion in the sector to achieve its growth ambitions by the end of this decade, but it announced in a capital markets event for investors on March 13 that it will double its planned spending in industrial and gas terminals.
As many know, we are building our first plastic film recycling facility in Connersville, Indiana. We expect our first line to be operational in the coming weeks. Want to know why I think mechanical recycling is the best technology for polyethylene film? Here are five reasons mechanical recycling is a great choice.
