Israel Chemicals reports jump in profit
A rise in potash prices and lower tax expenses helped Israel Chemicals achieve a $101 million profit in the second quarter of 2018, 77% more than in the corresponding quarter last year, Globes reports.
Excluding businesses sold, Israel Chemicals emphasizes, its adjusted net profit was more than double last year. In response to the results, Israel Chemicals' share price is up today and has now gained 35% since the beginning of the year, boosting the company's market cap to NIS 23.3 billion.
Israel Chemicals today reported that its revenue totaled $1.37 billion in the second quarter, 3.7% more than in the second quarter of 2017. The company said that most of the growth was due to higher prices throughout its value chain and the appreciation of the euro against the dollar, offset by the contribution of the businesses that were sold.
For example, the average price per ton of potash rose to $247 in the second quarter, compared with a $216 average price per ton in the second quarter of last year. Higher prices contributed to 9% growth in Israel Chemicals' potash sales, which reached $330 million, despite a slight decline in quantitative sales.
Israel Chemicals' revenue in the special minerals sector was up 7% to $788 million and its revenue in the special solutions sector rose 1.5% to $649 million. The company said that the rise in the quantity of sales of bromine-based and flame retardant by ICL Industrial Products, acids by ICL Advanced Additives, dairy proteins by ICL Food Specialties, special food ingredients, and products for the specialized agriculture market by ICL Fertilizers were offset by a slight drop in the quantity of sales of potash and phosphoric acid by ICL Essential Minerals.
Operating profit grew 19% to $172 million in the second quarter. Excluding a $16 million decline in value of assets in the second quarter resulting from the dairy protein manufacturer Rovita, Israel Chemicals' adjusted operating profit was $188 million, 23% more than in the corresponding quarter last year.