Commodity price rises boost ICL's profit and revenue

Raviv Zoller Crerdit: Natalie Cohen-Kadosh
Raviv Zoller Crerdit: Natalie Cohen-Kadosh

The Israeli specialty chemicals company has also raised its guidance for 2022.

Israeli specialty chemicals company ICL (TASE: ICL: NYSE: ICL), controlled by Idan Ofer, has reported very strong results for the first quarter of 2022, boosted by the jump in commodity prices worldwide. The company has also raised its guidance for 2022.

ICL's revenue in the first quarter of 2022 was $2.525 billion, up 67% from $1.510 billion in the corresponding quarter of 2021. Net profit in the first quarter of 2022 was $632 million, up 368% from the first quarter of 2021. Adjusted EBITDA of $1.002 billion was up 232% from $302 million in the first quarter of 2021.

ICL president and CEO Raviv Zoller said, "ICL delivered record results, even with global uncertainty, and leveraged its agility and diversity in the face of continuing supply chain challenges. Once again, all our specialty businesses achieved new quarterly results records, as all four of our divisions contributed to our significant growth and new ICL record sales and EBITDA.

He added, "We continued to focus on long term cash generation by innovating within our specialty businesses product portfolio and by driving cost efficiencies. The disruptions caused by the pandemic, sanctions and the conflict in Ukraine have radically shifted market dynamics and could continue to significantly impact global agriculture, food and industrial markets in the near term. We will continue to optimize our customer and supplier relationships, to manage through global supply challenges and to work to ensure consistent and reliable product supply for our customers."

ICL said that due to the very strong results in the first quarter, and significant changes in market dynamics, the company is raising its expectations for full year adjusted EBITDA to a range of $3.5 billion to $3.750 billion, with between $1.300 billion to $1.400 billion coming from its specialties focused businesses.

ICL's share price rose 2.60% to $10.26 on Wall Street last night, giving a market cap of $13.66 billion. The share price is up a further 2.34% in premarket trading.

Published by Globes, Israel business news - en.globes.co.il - on May 11, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Raviv Zoller Crerdit: Natalie Cohen-Kadosh
Raviv Zoller Crerdit: Natalie Cohen-Kadosh
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