ICL (TASE: ICL: NYSE: ICL) (formerly Israel Chemicals) has reported record results for the second quarter of 2022. The company also raised its guidance for full year 2022 following the sharp rise in commodity prices on world markets. ICL says that it is continuing to implement its growth strategy, which has led to a strong performance in activities for its specialty products in addition to the positive effect of commodity and raw materials prices.
Specialty minerals company ICL is controlled by Israel Corp. (TASE: ILCO), which is controlled by Idan Ofer. Second quarter revenue was $2.88 billion, up 78% from the corresponding quarter of 2021. Operating profit was $1.139 billion in the second quarter, up 369%, and adjusted net profit was $751 million, up 456% from the corresponding quarter. EBITDA in the second quarter was $1.258 billion, up 249% from the corresponding quarter.
ICL has raised its guidance, pushing up its revenue forecast for 2022 from $3.5-3.75 billion to $3.8-4 billion. The EBITDA forecast for 2022 has been raised from $3.5-3.75 billion to $3.8-4 billion.
ICL president and CEO Raviv Zoller said, "In the second quarter, ICL delivered all-time record sales, operating income and EBITDA, and another consecutive quarter of profit and margin growth, with record results from all our specialty businesses and our commodity businesses. We also achieved multiple production records, as we continued to focus on efficiency and productivity. Our performance in the quarter reaffirms our specialties strategy, and our strong balance sheet will allow us to accelerate business expansion opportunities, including growth through investments in R&D, capacity and new products, among others."
ICL added that it has reached an understanding with the Israeli Tax Authority and settled the dispute concerning the Israeli Law for Taxation of Profits from Natural Resources. The settlement provides final assessments for the tax years 2016 to 2020, as well as outlines understandings for the calculation of the levy for the years from 2021 and onwards. As a result of the agreement, in the second quarter of 2022, the company recognized tax expenses for prior years in the amount of $188 million.
ICL's share price is currently up 0.73% in premarket trading on the NYSE at $9.60, after closing down 0.94% yesterday at $9.53, giving a market cap of $12.267 billion.
Published by Globes, Israel business news - en.globes.co.il - on July 27 2022.
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