1.
|
Q3 2022 results
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
||||||
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
Sales
|
2,519
|
-
|
1,790
|
-
|
7,924
|
-
|
4,917
|
-
|
6,955
|
-
|
Gross profit
|
1,315
|
52
|
689
|
38
|
4,099
|
52
|
1,754
|
36
|
2,611
|
38
|
Operating income
|
935
|
37
|
321
|
18
|
2,976
|
38
|
749
|
15
|
1,210
|
17
|
Adjusted operating income (1)
|
928
|
37
|
315
|
18
|
2,947
|
37
|
736
|
15
|
1,194
|
17
|
Net income attributable to the shareholders of the Company
|
633
|
25
|
225
|
13
|
1,828
|
23
|
500
|
10
|
783
|
11
|
Adjusted net income - shareholders of the Company (1)
|
628
|
25
|
215
|
12
|
1,992
|
25
|
485
|
10
|
824
|
12
|
Diluted earnings per share (in dollars)
|
0.49
|
-
|
0.17
|
-
|
1.42
|
-
|
0.39
|
-
|
0.60
|
-
|
Diluted adjusted earnings per share (in dollars) (2)
|
0.49
|
-
|
0.17
|
-
|
1.55
|
-
|
0.38
|
-
|
0.64
|
-
|
Adjusted EBITDA (2)
|
1,049
|
42
|
438
|
24
|
3,309
|
42
|
1,100
|
22
|
1,687
|
24
|
Cash flows from operating activities
|
606
|
-
|
273
|
-
|
1,558
|
-
|
721
|
-
|
1,065
|
-
|
Purchases of property, plant and equipment and intangible assets (3)
|
184
|
-
|
128
|
-
|
535
|
-
|
426
|
-
|
611
|
-
|
(1) |
See “Adjustments to Reported Operating and Net income (non-GAAP)” below.
|
(2) |
Commencing 2022, the Company’s adjusted EBITDA definition was updated. See the disclaimer below.
|
(3) |
See “Condensed consolidated statements of cash flows (unaudited)” in the accompanying financial statements.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Operating income
|
935
|
321
|
2,976
|
749
|
1,210
|
Divestment related items and transaction costs from acquisitions (1)
|
(7)
|
(6)
|
(29)
|
(6)
|
(22)
|
Dispute and other settlement expenses (2)
|
-
|
-
|
-
|
(8)
|
5
|
Impairment and disposal of assets, provision for closure and restoration costs (3)
|
-
|
-
|
-
|
1
|
1
|
Total adjustments to operating income
|
(7)
|
(6)
|
(29)
|
(13)
|
(16)
|
Adjusted operating income
|
928
|
315
|
2,947
|
736
|
1,194
|
Net income attributable to the shareholders of the Company
|
633
|
225
|
1,828
|
500
|
783
|
Total adjustments to operating income
|
(7)
|
(6)
|
(29)
|
(13)
|
(16)
|
Total tax adjustments (4)
|
2
|
(4)
|
193
|
(2)
|
57
|
Total adjusted net income - shareholders of the Company
|
628
|
215
|
1,992
|
485
|
824
|
(1) |
For 2022, reflects a capital gain related to the sale of an asset in Israel and related to the Company’s
divestment of a 50%-owned joint venture, Novetide. For 2021, reflects a capital gain related to the sale of an asset in Israel and the divestment of the Industrial Products segment's Zhapu site in China, partially offset by an earnout adjustment relating to a divestment in previous years, as well as transaction costs related to acquisitions in Brazil.
|
(2) |
For 2021, reflects settlement costs related to the termination of a partnership between ICL Iberia and Nobian, as well as reimbursement of
arbitration costs related to a potash project in Ethiopia, which was partially offset by a reversal of a VAT provision following a court ruling in Brazil.
|
(3) |
For 2021, reflects the write-off of a pilot investment in Spain that did not materialize and an increase in restoration costs, offset by a
reversal of impairment due to the strengthening of phosphate prices.
|
(4) |
For 2022, reflects tax expenses in respect of prior years following a settlement with Israeli’s Tax Authority regarding Israel's surplus profit
levy which outlines understandings for the calculation of the levy, including the measurement of fixed assets and the tax impact of adjustments made to operational income. For additional information, see Note 7 to the Company’s interim
Financial Statements. For 2021, the amount includes tax expenses related to the release of accumulated profits of the Company and certain Israeli subsidiaries that were exempt from tax until their distribution as a dividend, following a temporary provision to the Israeli Encouragement Law, as well as the tax impact of adjustments made to operational income.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Net income
|
635
|
242
|
1,877
|
534
|
832
|
Financing expenses, net
|
24
|
34
|
72
|
84
|
122
|
Taxes on income
|
276
|
45
|
1,027
|
132
|
260
|
Less: Share in earnings of equity-accounted investees
|
-
|
-
|
-
|
(1)
|
(4)
|
Operating income
|
935
|
321
|
2,976
|
749
|
1,210
|
Depreciation and amortization
|
121
|
123
|
362
|
364
|
493
|
Adjustments (1)
|
(7)
|
(6)
|
(29)
|
(13)
|
(16)
|
Total adjusted EBITDA (2)
|
1,049
|
438
|
3,309
|
1,100
|
1,687
|
(1) |
See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
|
(2) |
Commencing 2022, the Company’s adjusted EBITDA definition was updated, see the disclaimer above.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Net income attributable to the shareholders of the Company
|
633
|
225
|
1,828
|
500
|
783
|
Adjustments (1)
|
(7)
|
(6)
|
(29)
|
(13)
|
(16)
|
Total tax adjustments
|
2
|
(4)
|
193
|
(2)
|
57
|
Adjusted net income - shareholders of the Company
|
628
|
215
|
1,992
|
485
|
824
|
Weighted-average number of diluted ordinary shares outstanding (in thousands)
|
1,290,131
|
1,287,267
|
1,288,948
|
1,285,875
|
1,287,051
|
Diluted adjusted earnings per share (in dollars) (2)
|
0.49
|
0.17
|
1.55
|
0.38
|
0.64
|
(1) |
See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
|
(2) |
The diluted adjusted earnings per share are calculated as follows: dividing the adjusted net income attributable to the shareholders of the
Company by the weighted-average number of diluted ordinary shares outstanding (in thousands).
|
1. |
Limited export of fertilizers from Belarus, due to sanctions, and from Russia, following the war in Ukraine, resulted in a sharp increase in the
price of MOP in the first half of 2022.
|
2. |
Global inflation has risen sharply, mainly due to an unprecedented series of supply side shocks, led by Russia’s invasion of Ukraine driving
energy prices to extraordinary levels.
|
3. |
Extreme weather conditions in some regions and geopolitical tensions have pushed global grain stocks and food security toward decade lows.
|
4. |
The duration of sanctions, as well as the current geopolitical unrest cannot be predicted, and it is difficult to assess their future impact on
ICL’s results and operations. The Company continuously reviews developments, making adjustments to minimize any adverse effects on the results of its activities.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q3 2021 figures
|
1,790
|
(1,469)
|
321
|
|
Total adjustments Q3 2021*
|
-
|
(6)
|
(6)
|
|
Adjusted Q3 2021 figures
|
1,790
|
(1,475)
|
315
|
|
Quantity
|
(144)
|
110
|
(34)
|
|
Price
|
992
|
-
|
992
|
|
Exchange rates
|
(119)
|
88
|
(31)
|
|
Raw materials
|
-
|
(208)
|
(208)
|
|
Energy
|
-
|
(32)
|
(32)
|
|
Transportation
|
-
|
(10)
|
(10)
|
|
Operating and other expenses
|
-
|
(64)
|
(64)
|
|
Adjusted Q3 2022 figures
|
2,519
|
(1,591)
|
928
|
|
Total adjustments Q3 2022*
|
-
|
7
|
7
|
|
Q3 2022 figures
|
2,519
|
(1,584)
|
935
|
- |
Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of bromine and phosphorus-based
flame retardants, phosphate fertilizers, white phosphoric acid (WPA) and elemental bromine. This was partially offset by higher sales volumes of potash and specialty raw materials used for energy storage solutions.
|
- |
Price
- The positive impact on operating income primarily related to an increase of $362 in the potash price (CIF) per ton year-over-year, as well as to an
increase in the selling prices of phosphate fertilizers, specialty agriculture and FertilizerpluS products, white phosphoric acid (WPA), bromine-based flame retardants, phosphate-based food additives, bromine-based industrial solutions,
and salts.
|
- |
Exchange rates - The unfavorable impact on operating income was primarily related to the depreciation of the euro and the Chinese yuan
against the US dollar, which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily due to higher prices of sulphur, caustic soda and potassium hydroxide
(KOH) as well as higher costs of commodity fertilizers and raw materials used in production of industrial products.
|
- |
Energy – The negative impact on operating income was due to increased electricity and gas prices, mainly in Europe.
|
- |
Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher maintenance and operational costs,
sales commissions and royalty payments.
|
7-9/2022
|
7-9/2021
|
|||
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
Asia
|
685
|
27
|
476
|
27
|
Europe
|
671
|
27
|
495
|
28
|
South America
|
575
|
23
|
425
|
24
|
North America
|
445
|
18
|
291
|
16
|
Rest of the world
|
143
|
5
|
103
|
5
|
Total
|
2,519
|
100
|
1,790
|
100
|
- |
Asia
– The increase primarily relates to higher selling prices and sales volumes of potash and specialty raw materials used for energy storage solutions, as well as higher selling prices of bromine-based flame retardants and an increase in
sales volumes of specialty agriculture and FertilizerpluS products and clear brine fluids. The increase was partially offset by a
decrease in sales volumes of bromine-based flame retardants and phosphate fertilizers.
|
- |
Europe – The increase primarily relates to higher selling prices of potash, white phosphoric acid (WPA), phosphate fertilizers, specialty
agriculture and FertilzerpluS products, phosphate-based food additives and bromine-based flame retardants. The increase was partially offset by lower sales volumes of phosphate fertilizers, WPA, phosphorous-based flame retardants and
potash, as well as unfavorable impact of the depreciation of the average exchange rate of the euro against the US dollar.
|
- |
South America – The increase primarily relates to higher selling prices of potash, phosphate fertilizers and WPA, as well as higher sales
volumes of specialty agriculture products. The increase was partially offset by a decrease in sales volumes of potash, clear brine fluids and WPA, as well as lower selling prices of specialty agriculture products.
|
- |
North America – The increase primarily relates to higher selling prices and sales volumes of potash, phosphate fertilizers and
bromine-based flame retardants, as well as higher selling prices of phosphate-based food additives and phosphorus-based flame retardants.
|
- |
Rest of the world – The increase in sales was primarily related to higher sales volumes and selling prices of potash.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2021 figures
|
4,917
|
(4,168)
|
749
|
|
Total adjustments YTD 2021*
|
-
|
(13)
|
(13)
|
|
Adjusted YTD 2021 figures
|
4,917
|
(4,181)
|
736
|
|
New Brazilian Business' contribution
|
302
|
(248)
|
54
|
|
Quantity
|
(169)
|
120
|
(49)
|
|
Price
|
3,148
|
-
|
3,148
|
|
Exchange rates
|
(274)
|
187
|
(87)
|
|
Raw materials
|
-
|
(534)
|
(534)
|
|
Energy
|
-
|
(80)
|
(80)
|
|
Transportation
|
-
|
(84)
|
(84)
|
|
Operating and other expenses
|
-
|
(157)
|
(157)
|
|
Adjusted YTD 2022 figures
|
7,924
|
(4,977)
|
2,947
|
|
Total adjustments YTD 2022*
|
-
|
29
|
29
|
|
YTD 2022 figures
|
7,924
|
(4,948)
|
2,976
|
- |
New Brazilian businesses' contribution – In July 2021, the Company completed the acquisition of the South American Plant Nutrition business
of ADS.
|
- |
Quantity
– The negative impact on operating income was primarily related to a decrease in sales volumes of bromine and phosphorus-based flame retardant
and bromine-based industrial solutions. This decrease was partially offset by higher sales volumes of acids, potash and specialty raw materials used for energy storage solutions.
|
- |
Price
– The positive impact on operating income was primarily related to an increase of $416 in the potash price (CIF) per ton year-over-year, as well as an increase
in the selling prices of specialty agriculture and FertilizerpluS products, phosphate fertilizers, WPA, bromine and phosphorous-based flame retardants, bromine-based industrial solutions and salts.
|
- |
Exchange rates - The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro and the Chinese yuan against the US dollar, which led to a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily due to higher prices of sulphur, caustic soda and potassium hydroxide
(KOH), as well as higher costs of commodity fertilizers and raw materials used in the production of industrial products.
|
- |
Energy - The negative impact on operating income was due to an increase in electricity and gas prices, mainly in Europe and North America.
|
- |
Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs, mainly in Europe.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs, sales commissions
and royalty payments.
|
1-9/2022
|
1-9/2021
|
|||
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
Asia
|
2,151
|
27
|
1,322
|
27
|
Europe
|
2,201
|
28
|
1,642
|
33
|
South America
|
1,919
|
24
|
796
|
16
|
North America
|
1,219
|
15
|
857
|
17
|
Rest of the world
|
434
|
6
|
300
|
7
|
Total
|
7,924
|
100
|
4,917
|
100
|
- |
Asia – The increase primarily relates to higher sales volumes and selling prices of potash, specialty raw materials used for energy storage
solutions, bromine-based industrial solutions products, specialty agriculture and FertlizerpluS products, as well as an increase in the selling prices of bromine-based flame retardants and phosphate fertilizers. The increase was partially
offset by a decrease in sales volumes of bromine-based flame retardants.
|
- |
Europe – The increase primarily relates to higher selling prices of potash, WPA, phosphate fertilizers and bromine and phosphorous-based
flame retardants, together with an increase in selling prices and sales volumes of specialty agriculture and FertilizerpluS products, industrial salts and phosphate-based food additives. The increase was partially offset by lower sales
volumes of potash, phosphorous-based flame retardants and by an unfavorable impact of the depreciation of the average exchange rate of the euro against the US dollar.
|
- |
South America – The increase primarily relates to higher sales volumes and selling prices of potash, specialty agriculture and
FertilizerpluS products, as well as higher selling prices of phosphate fertilizers and WPA. This increase was partially offset by a decrease in sales volumes of clear brine fluids and WPA.
|
- |
North America – The increase primarily relates to higher selling prices of potash, phosphate fertilizers, WPA, phosphate-based food
additives and phosphorus-based flame retardants. The increase was partially offset by a decrease in sales volumes of potash and phosphorus-based flame retardants.
|
- |
Rest of the world – The increase primarily relates to higher selling prices and sales volumes of potash, specialty agriculture products and
WPA.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
437
|
387
|
1,417
|
1,195
|
1,617
|
Sales to external customers
|
428
|
383
|
1,394
|
1,183
|
1,601
|
Sales to internal customers
|
9
|
4
|
23
|
12
|
16
|
Segment Operating Income
|
154
|
105
|
533
|
324
|
435
|
Depreciation and amortization
|
16
|
16
|
46
|
47
|
65
|
Segment EBITDA
|
170
|
121
|
579
|
371
|
500
|
Capital expenditures
|
23
|
18
|
63
|
49
|
74
|
• |
Sales of elemental bromine were at the same level year-over-year. Lower volume driven by a slowdown in bromine-based flame retardants demand was
offset by higher prices.
|
• |
Sales of bromine-based flame retardants were slightly higher year-over-year mainly due to higher prices in most markets, partially offset by
softening demand in the electronics sector.
|
• |
Phosphorus-based flame retardants’ sales decreased year-over-year, mainly due to resumption of production and exports by Chinese manufacturers.
|
• |
High oil and gas prices led to higher year-over-year demand for clear brine fluids for increased drilling activities, mainly in the Middle East.
|
• |
Sales of Dead Sea salts increased year-over-year due to higher pricing, mainly of industrial KCl for the oil drilling market.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q3 2021 figures
|
387
|
(282)
|
105
|
|
Quantity
|
(54)
|
37
|
(17)
|
|
Price
|
118
|
-
|
118
|
|
Exchange rates
|
(14)
|
10
|
(4)
|
|
Raw materials
|
-
|
(24)
|
(24)
|
|
Energy
|
-
|
(4)
|
(4)
|
|
Transportation
|
-
|
(5)
|
(5)
|
|
Operating and other expenses
|
-
|
(15)
|
(15)
|
|
Q3 2022 figures
|
437
|
(283)
|
154
|
- |
Quantity – The negative impact on operating income was primarily related to decreased sales volumes of bromine and phosphorus-based flame
retardants and elemental bromine.
|
- |
Price – The positive impact on operating income was mainly due to higher selling prices of bromine-based flame retardants and bromine-based
industrial solutions.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro against the US dollar which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily due to increased prices of raw materials.
|
- |
Transportation – The negative impact on operating income primarily resulted from higher marine transportation costs.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs and royalty
payments.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2021 figures
|
1,195
|
(871)
|
324
|
|
Quantity
|
(146)
|
103
|
(43)
|
|
Price
|
402
|
-
|
402
|
|
Exchange rates
|
(34)
|
19
|
(15)
|
|
Raw materials
|
-
|
(68)
|
(68)
|
|
Energy
|
-
|
(8)
|
(8)
|
|
Transportation
|
-
|
(21)
|
(21)
|
|
Operating and other expenses
|
-
|
(38)
|
(38)
|
|
YTD 2022 figures
|
1,417
|
(884)
|
533
|
- |
Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of bromine and phosphorus-based
flame retardants, as well as bromine based industrial solutions and clear brine fluids.
|
- |
Price – The positive impact on operating income was due to higher selling prices of bromine and phosphorus-based flame retardants, as well
as bromine based industrial solutions.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro against the US dollar which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily due to increased costs of raw materials.
|
- |
Energy – The negative impact on operating income was primarily due to increased electricity and gas prices.
|
- |
Transportation – The negative impact on the segment’s operating income was primarily related to higher marine transportation costs.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs and royalty
payments.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
854
|
400
|
2,600
|
1,129
|
1,776
|
Potash sales to external customers
|
684
|
310
|
2,142
|
860
|
1,401
|
Potash sales to internal customers
|
55
|
27
|
148
|
76
|
94
|
Other and eliminations (1)
|
115
|
63
|
310
|
193
|
281
|
Gross Profit
|
615
|
209
|
1,836
|
498
|
870
|
Segment Operating Income
|
496
|
84
|
1,482
|
155
|
399
|
Depreciation and amortization
|
41
|
37
|
121
|
108
|
148
|
Segment EBITDA
|
537
|
121
|
1,603
|
263
|
547
|
Capital expenditures
|
79
|
58
|
254
|
185
|
270
|
Potash price - CIF ($ per ton)
|
697
|
335
|
712
|
296
|
356
|
(1) |
Primarily includes salt produced in Spain, metal magnesium-based products, chlorine,
and sales of excess electricity produced by ICL’s power plant at the Dead Sea in Israel.
|
• |
ICL's potash price (CIF) per ton of $697 was 13% lower compared to the second quarter of 2022 and 108% higher year-over-year.
|
• |
The Grain Price Index decreased during the third quarter following a decrease in soybean and corn prices by 16.3% and 8.1%, respectively, in light
of a bearish macroeconomic outlook and losses in other food commodities. However, the decrease in the Grain Price Index was partially offset by an increase in rice and wheat prices by 6.6% and 1.6%, respectively. The increase in rice prices
is due to restricted supply and tight stocks in Thailand, lower planted areas in the US, a flood in Pakistan and export quotas in India. Wheat prices increased due to impact of the escalation of the Russia – Ukraine war.
|
• |
The WASDE (World Agricultural Supply and Demand Estimates) report, published by the USDA in October 2022, showed a continued decrease in the
expected ratio of global inventories of grains to consumption to 27.6% for the 2022/23 agriculture year, compared to 28.3% for the 2021/22 agriculture year and 29.2% for the 2020/21 agriculture year.
|
• |
In August 2022, ICL signed a binding memorandum of understanding ("MOU") with a European customer to supply 300,000 metric tons of potash
annually. The terms of the MOU will be incorporated into a definitive long-term agreement, which will become effective in January 2023, and will remain effective for a period of two consecutive years with an automatic renewal for successive
periods of one year each. The price will be based on prevailing market prices and in accordance with mutual understandings with the customer. The product shall be manufactured and delivered from ICL’s plants in Israel and Spain.
|
• |
In June 2022, an unexpected flow of brine was discovered above ground at the outskirts of an alluvial fan area which, according to initial tests
by the Company, appears to have resulted from a combination of seepage from a certain area of the feeder canal of ICL Dead Sea’s pumping station P-9 (hereinafter P-9), which according to the Company's estimations does not exceed the
approved design specifications of P-9, and unique ground conditions. The Company has taken steps to create solutions for the short and long term and intends to rectify any resulting environmental impacts to the extent required. For further
information, please see Note 7 to the Company’s interim Financial Statements.
|
• |
Operational and geological challenges at ICL Iberia’s mine negatively impacted production during the second and third quarters. ICL Iberia has
initiated performance improvement measured which are expected to increase production. In addition, a ramp up at the site's flotation plant is planned to be completed by year end. These actions should enable ICL Iberia to reach and sustain a
one-million-ton production capacity level while lowering its cost per ton.
|
• |
Annual contracts secured at high prices, supported by stable and sustainable production, drove an increase in sales year-over-year, despite a
softening of demand in the metal magnesium market.
|
Average prices
|
07-09/2022
|
07-09/2021
|
VS Q3 2021
|
04-06/2022
|
VS Q2 2022
|
Granular potash – Brazil
|
CFR spot
($ per ton)
|
844
|
674
|
25.2%
|
1115
|
(24.3)%
|
Granular potash – Northwest Europe
|
CIF spot/contract
(€ per ton)
|
875
|
409
|
113.9%
|
869
|
0.7%
|
Standard potash – Southeast Asia
|
CFR spot
($ per ton)
|
873
|
449
|
94.4%
|
929
|
(6.0)%
|
Potash imports
|
||||||
To Brazil
|
million tons
|
2.9
|
4
|
(27.5)%
|
3.6
|
(19.4)%
|
To China
|
million tons
|
2.1
|
1.5
|
40.0%
|
2
|
5.0%
|
To India
|
million tons
|
0.55
|
0.7
|
(21.4)%
|
0.55
|
0.0%
|
Thousands of tons
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
Production
|
1,163
|
1,152
|
3,467
|
3,326
|
4,514
|
Total sales (including internal sales)
|
1,134
|
1,064
|
3,431
|
3,287
|
4,434
|
Closing inventory
|
391
|
314
|
391
|
314
|
355
|
- |
Production – Production was 11 thousand tons higher year-over-year mainly due to operational improvements implemented at ICL Dead Sea.
|
- |
Sales – The quantity of potash sold was 70 thousand tons higher year-over-year, mainly due to higher sales quantities to China, India and
the US, offset by lower sales to Brazil.
|
- |
Production – In the nine-month period ended September 30, 2022, potash production was 141 thousand tons higher than the corresponding
period last year, mainly due to higher production at ICL Dead Sea due to operational improvements, as well as higher production at ICL Iberia following the connection of the ramp to the Cabanasses mine.
|
- |
Sales – The quantity of potash sold in the nine-month period ended September 30, 2022, was 144 thousand tons higher year-over-year, mainly
due to higher sales to Brazil, China, and India, partially offset by lower sales to the US and Spain.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q3 2021 figures
|
400
|
(316)
|
84
|
|
Quantity
|
10
|
1
|
11
|
|
Price
|
471
|
-
|
471
|
|
Exchange rates
|
(27)
|
11
|
(16)
|
|
Raw materials
|
(3)
|
(3)
|
||
Energy
|
-
|
(25)
|
(25)
|
|
Transportation
|
-
|
4
|
4
|
|
Operating and other expenses
|
-
|
(30)
|
(30)
|
|
Q3 2022 figures
|
854
|
(358)
|
496
|
- |
Quantity – The positive impact on operating income was primarily related to increased potash sales volumes from ICL Dead Sea site.
|
- |
Price – The positive impact on operating income resulted primarily from an increase of $362 in the potash price (CIF) per ton year-over-year.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro against the US dollar which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Energy – The negative impact on operating income was due to increased electricity and gas prices, mainly in Europe.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs and royalty
payments.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2021 figures
|
1,129
|
(974)
|
155
|
|
Quantity
|
23
|
(14)
|
9
|
|
Price
|
1,515
|
-
|
1,515
|
|
Exchange rates
|
(67)
|
24
|
(43)
|
|
Raw materials
|
(6)
|
(6)
|
||
Energy
|
-
|
(50)
|
(50)
|
|
Transportation
|
-
|
(17)
|
(17)
|
|
Operating and other expenses
|
-
|
(81)
|
(81)
|
|
YTD 2022 figures
|
2,600
|
(1,118)
|
1,482
|
- |
Quantity – The positive impact on operating income was primarily related to increased potash sales volumes from ICL Dead Sea and ICL Iberia.
|
- |
Price – The positive impact on operating income resulted primarily from an increase of $416 in the potash price (CIF) per ton year-over-year.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro against the US dollar which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was due to increased costs of raw materials.
|
- |
Energy - The negative impact on operating income was due to increased electricity and gas prices, mainly in Europe.
|
- |
Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs and royalty
payments.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
766
|
599
|
2,479
|
1,683
|
2,254
|
Sales to external customers
|
697
|
554
|
2,277
|
1,560
|
2,087
|
Sales to internal customers
|
69
|
45
|
202
|
123
|
167
|
Segment Operating Income
|
193
|
88
|
661
|
207
|
294
|
Depreciation and amortization*
|
46
|
53
|
140
|
161
|
207
|
Segment EBITDA
|
239
|
141
|
801
|
368
|
501
|
Capital expenditures
|
72
|
51
|
181
|
166
|
228
|
• |
The specialty phosphates business benefited from strong demand and higher prices in all regions, despite continuing supply-chain challenges, which
negatively impacted raw material and production costs.
|
• |
White phosphoric acid (WPA) sales increased year-over-year, driven by higher selling prices in all regions, partially offset by increasing raw
material costs.
|
• |
The Company's YPH joint venture in China continued to experience growing demand for specialty raw materials used for energy storage solutions.
|
• |
Sales of dairy proteins increased substantially year-over-year, driven by strong demand for the segment's specialty milk powders and other food
applications.
|
• |
In the third quarter, phosphate specialties’ major raw material suppliers experienced significant unplanned production downtime. However, the
segment’s global production and logistical network enabled business continuation.
|
• |
Phosphate fertilizer prices decreased in the quarter mainly due to a decrease in demand and OCP's (Morocco) notification regarding increased
production at its Jorf Lasfar site. This decrease occurred despite China's declaration regarding combined DAP/MAP/TSP/NPS export quotas for the third quarter, as global sulphur market prices decreased sharply.
|
- |
In India, DAP prices decreased following orders for a total of 6 million tons in 2022.
|
- |
In the US, the DAP/MAP price decrease was moderated by a lack of imports towards the scheduled closure of the Mississippi river system (late
October/early November) and the halt in production at Mosaic’s plants in Florida due to Hurricane Ian.
|
- |
In Brazil, MAP prices decreased due to high imported stocks, mainly from Russia.
|
• |
IFFCO (India) finalized its phosphoric acid supply contracts for the fourth quarter of 2022 with at least one major supplier at $1,200/t P2O5 CFR,
down by $515/t. In addition, OCP (Morocco) reported it settled its Phosphoric acid supply contracts to Western Europe at $1,280 - $1,410/t P2O5 CFR, down by $553/t.
|
• |
In October 2022, ICL announced that it plans to build a $400 million lithium iron phosphate (“LFP”) cathode active material manufacturing plant in
St. Louis, Missouri. This is expected to be the first large-scale LFP material manufacturing plant in the US. The Company was awarded $197 million through Bipartisan Infrastructure Law funding, which is subject to the completion of
negotiations with the Department of Energy. The plant is expected to be operational by 2024 and will produce high-quality LFP material for the global lithium battery industry using, primarily, a domestic supply chain.
|
Average prices
|
$ per ton
|
07-09/2022
|
07-09/2021
|
VS Q3 2021
|
04-06/2022
|
VS Q2 2022
|
DAP
|
CFR India Bulk Spot
|
863
|
643
|
34%
|
955
|
(10)%
|
TSP
|
CFR Brazil Bulk Spot
|
797
|
629
|
27%
|
1034
|
(23)%
|
SSP
|
CFR Brazil inland 18-20% P2O5 Bulk Spot
|
423
|
334
|
27%
|
602
|
(30)%
|
Sulphur
|
Bulk FOB Adnoc monthly Bulk contract
|
193
|
176
|
10%
|
455
|
(58)%
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q3 2021 figures
|
599
|
(511)
|
88
|
|
Quantity
|
(37)
|
23
|
(14)
|
|
Price
|
251
|
-
|
251
|
|
Exchange rates
|
(47)
|
37
|
(10)
|
|
Raw materials
|
-
|
(124)
|
(124)
|
|
Energy
|
-
|
(3)
|
(3)
|
|
Operating and other expenses
|
-
|
5
|
5
|
|
Q3 2022 figures
|
766
|
(573)
|
193
|
- |
Quantity – The negative impact on operating income was primarily related to lower sales volumes of white phosphoric acid (WPA), mainly in
Europe and South America, as well as lower sales volumes of fertilizers produced in YPH due to a maintenance shutdown and limitations on export quotes. This was partially offset by an increase in sales volumes of specialty raw materials
used for energy storage solutions.
|
- |
Price – The positive impact on operating income was primarily related to an increase in the selling prices of WPA, salts and
phosphate-based food additives in all regions, as well as phosphate fertilizers.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro and the Chinese yuan against the US dollar, which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was due to higher costs of sulphur, as well as caustic soda and potassium hydroxide
(KOH).
|
- |
Operating and other expenses – The positive impact on operating income was primarily related to lower operational costs and royalty
payments.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2021 figures
|
1,683
|
(1,476)
|
207
|
|
Quantity
|
97
|
(69)
|
28
|
|
Price
|
795
|
-
|
795
|
|
Exchange rates
|
(96)
|
72
|
(24)
|
|
Raw materials
|
-
|
(325)
|
(325)
|
|
Energy
|
-
|
(7)
|
(7)
|
|
Transportation
|
-
|
(11)
|
(11)
|
|
Operating and other expenses
|
-
|
(2)
|
(2)
|
|
YTD 2022 figures
|
2,479
|
(1,818)
|
661
|
- |
Quantity – The positive impact on operating income was driven mainly by strong sales volumes of WPA, specialty raw materials used for
energy storage solutions, salts and dairy proteins products. This was partially offset by lower sales volumes of phosphate fertilizers.
|
- |
Price – The positive impact on operating income was primarily related to an increase in the selling prices of phosphate fertilizers, WPA,
salts and phosphate-based food additives in all regions.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro and the Chinese yuan against the US dollar, which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was due to higher costs of sulphur, as well as caustic soda and potassium hydroxide
(KOH).
|
- |
Energy – The negative impact on operating income was due to increased electricity and gas prices, mainly in Europe and North America.
|
- |
Transportation – The negative impact on operating income resulted primarily from increased marine and inland transportation costs.
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
629
|
504
|
1,895
|
1,178
|
1,670
|
Sales to external customers
|
618
|
495
|
1,863
|
1,163
|
1,644
|
Sales to internal customers
|
11
|
9
|
32
|
15
|
26
|
Segment Operating Income
|
112
|
52
|
346
|
93
|
135
|
Depreciation and amortization
|
15
|
15
|
46
|
41
|
62
|
Segment EBITDA
|
127
|
67
|
392
|
134
|
197
|
Capital expenditures
|
25
|
13
|
63
|
36
|
74
|
• |
The Growing Solutions (formerly Innovative Ag Solutions) segment's profit for the third quarter increased year-over-year mainly due to higher
selling prices in most regions and business lines.
|
• |
The increase in market prices was driven by higher raw material costs, primarily nitrogen, phosphate, and potash.
|
• |
Sales to the specialty agriculture market increased year-over-year, due to higher sales prices of straights fertilizers, liquid NPKs, water
soluble NPKs, and controlled-release fertilizers, as well as the strong performance of newly acquired companies in Brazil. An increase in selling prices was prevalent in all regions.
|
• |
Sales of the Turf and Ornamental business (T&O) increased year-over-year, mainly due to higher
selling prices.
|
• |
Sales of FertilizerpluS (the Company’s Polysulphate line of products) increased year-over-year due to
higher selling prices and sales volumes.
|
• |
In August 2022, ICL signed a multi-year, strategic, collaboration agreement with Lavie Bio Ltd., according to which it will invest $10 million in
Lavie Bio under a SAFE (simple agreement for future equity). The collaboration will focus on developing novel bio-stimulant products to enrich fertilizer efficiency. Ag-biologicals are externally applied products and used to optimize
overall plant and soil health.
|
• |
In September 2022, ICL launched a biodegradable coated fertilizer technology - eqo.x, controlled release
urea designed for open field agriculture. This solution will help farmers maximize agricultural crop performance, while also limiting environmental impact by reducing nutrient loss and increasing
nutrient use efficiency (NUE). The eqo.x release technology is the first offering in the market to provide a controlled release fertilizer (CRF) coating for urea which biodegrades more rapidly, and was specifically designed to meet future
European fertilizer standards set to go into effect in 2026.
|
• |
In the third quarter, the production of polysulphate increased by 9% year-over-year to 216 thousand tons.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q3 2021 figures
|
504
|
(452)
|
52
|
|
Quantity
|
(69)
|
53
|
(16)
|
|
Price
|
225
|
-
|
225
|
|
Exchange rates
|
(31)
|
29
|
(2)
|
|
Raw materials
|
-
|
(116)
|
(116)
|
|
Energy
|
-
|
(6)
|
(6)
|
|
Transportation
|
-
|
(9)
|
(9)
|
|
Operating and other expenses
|
-
|
(16)
|
(16)
|
|
Q3 2022 figures
|
629
|
(517)
|
112
|
- |
Quantity – The negative impact on operating income was due to lower sales volumes of specialty agriculture and FertilizerpluS products.
|
- |
Price – The positive impact on operating income was due to higher selling prices across most business lines, primarily specialty
agriculture and FertilizerpluS products.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro against the US dollar, which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily related to higher costs of commodity fertilizers.
|
- |
Energy – The negative impact on operating income was primarily due to increased electricity and gas prices, mainly in Europe.
|
- |
Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher sales commissions and operational
costs.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2021 figures
|
1,178
|
(1,085)
|
93
|
|
New Brazilian Business' contribution
|
302
|
(248)
|
54
|
|
Quantity
|
(91)
|
68
|
(23)
|
|
Price
|
586
|
-
|
586
|
|
Exchange rates
|
(80)
|
72
|
(8)
|
|
Raw materials
|
-
|
(265)
|
(265)
|
|
Energy
|
-
|
(20)
|
(20)
|
|
Transportation
|
-
|
(35)
|
(35)
|
|
Operating and other expenses
|
-
|
(36)
|
(36)
|
|
YTD 2022 figures
|
1,895
|
(1,549)
|
346
|
- |
New Brazilian businesses contribution – In July 2021, the Company completed the acquisition of the South American Plant Nutrition business
of ADS.
|
- |
Quantity – The negative impact on operating income was due to a decrease in sales volumes of specialty agriculture products. The decrease
was partially offset by higher sales volumes of FertilizerpluS products.
|
- |
Price – The positive impact on operating income was due to higher selling prices across most business lines, primarily specialty
agriculture and FertilizerpluS products.
|
- |
Exchange rate – The unfavorable impact on operating income was primarily related to the depreciation of the average exchange rate of the
euro against the US dollar, which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily related to higher costs of commodity fertilizers.
|
- |
Energy – The negative impact on operating income was due to increased electricity and gas prices, mainly in Europe.
|
- |
Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher sales commissions and operational
costs.
|
September 30,
2022 |
September 30,
2021 |
December 31, 2021
|
|
$ millions
|
$ millions
|
$ millions
|
Current assets
|
|||
Cash and cash equivalents
|
498
|
301
|
473
|
Short-term investments and deposits
|
92
|
88
|
91
|
Trade receivables
|
1,672
|
1,210
|
1,418
|
Inventories
|
1,982
|
1,409
|
1,570
|
Prepaid expenses and other receivables
|
361
|
453
|
357
|
Total current assets
|
4,605
|
3,461
|
3,909
|
Non-current assets
|
|||
Deferred tax assets
|
152
|
157
|
147
|
Property, plant and equipment
|
5,764
|
5,632
|
5,754
|
Intangible assets
|
825
|
927
|
867
|
Other non-current assets
|
252
|
395
|
403
|
Total non-current assets
|
6,993
|
7,111
|
7,171
|
Total assets
|
11,598
|
10,572
|
11,080
|
Current liabilities
|
|||
Short-term debt
|
481
|
597
|
577
|
Trade payables
|
1,066
|
885
|
1,064
|
Provisions
|
45
|
56
|
59
|
Other payables
|
1,040
|
740
|
912
|
Total current liabilities
|
2,632
|
2,278
|
2,612
|
Non-current liabilities
|
|||
Long-term debt and debentures
|
2,290
|
2,426
|
2,436
|
Deferred tax liabilities
|
412
|
391
|
384
|
Long-term employee liabilities
|
398
|
606
|
564
|
Long-term provisions and accruals
|
262
|
276
|
278
|
Other
|
61
|
73
|
70
|
Total non-current liabilities
|
3,423
|
3,772
|
3,732
|
Total liabilities
|
6,055
|
6,050
|
6,344
|
Equity
|
|||
Total shareholders’ equity
|
5,310
|
4,328
|
4,527
|
Non-controlling interests
|
233
|
194
|
209
|
Total equity
|
5,543
|
4,522
|
4,736
|
Total liabilities and equity
|
11,598
|
10,572
|
11,080
|
For the three-month
period ended
|
For the nine-month
period ended
|
For the year ended
|
|||
September 30, 2022
|
September 30, 2021
|
September 30, 2022
|
September 30, 2021
|
December 31, 2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
2,519
|
1,790
|
7,924
|
4,917
|
6,955
|
Cost of sales
|
1,204
|
1,101
|
3,825
|
3,163
|
4,344
|
Gross profit
|
1,315
|
689
|
4,099
|
1,754
|
2,611
|
Selling, transport and marketing expenses
|
300
|
288
|
900
|
763
|
1,067
|
General and administrative expenses
|
70
|
69
|
213
|
198
|
276
|
Research and development expenses
|
18
|
16
|
53
|
45
|
64
|
Other expenses
|
-
|
9
|
6
|
39
|
57
|
Other income
|
(8)
|
(14)
|
(49)
|
(40)
|
(63)
|
Operating income
|
935
|
321
|
2,976
|
749
|
1,210
|
Finance expenses
|
57
|
54
|
262
|
116
|
216
|
Finance income
|
(33)
|
(20)
|
(190)
|
(32)
|
(94)
|
Finance expenses, net
|
24
|
34
|
72
|
84
|
122
|
Share in earnings of equity-accounted investees
|
-
|
-
|
-
|
1
|
4
|
Income before taxes on income
|
911
|
287
|
2,904
|
666
|
1,092
|
Taxes on income
|
276
|
45
|
1,027
|
132
|
260
|
Net income
|
635
|
242
|
1,877
|
534
|
832
|
Net income attributable to the non-controlling interests
|
2
|
17
|
49
|
34
|
49
|
Net income attributable to the shareholders of the Company
|
633
|
225
|
1,828
|
500
|
783
|
Earnings per share attributable to the shareholders of the Company:
|
|||||
Basic earnings per share (in dollars)
|
0.49
|
0.18
|
1.42
|
0.40
|
0.61
|
Diluted earnings per share (in dollars)
|
0.49
|
0.17
|
1.42
|
0.39
|
0.60
|
Weighted-average number of ordinary shares outstanding:
|
|||||
Basic (in thousands)
|
1,287,881
|
1,283,563
|
1,286,698
|
1,282,171
|
1,282,807
|
Diluted (in thousands)
|
1,290,131
|
1,287,267
|
1,288,948
|
1,285,875
|
1,287,051
|
For the three-month period ended
|
For the nine-month period ended
|
For the year ended
|
|||
September 30, 2022
|
September 30, 2021
|
September 30, 2022
|
September 30, 2021
|
December 31, 2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Net income
|
635
|
242
|
1,877
|
534
|
832
|
Components of other comprehensive income that will be reclassified subsequently to net income
|
|||||
Foreign currency translation differences
|
(138)
|
(73)
|
(275)
|
(91)
|
(105)
|
Change in fair value of cash flow hedges transferred to the statement of income
|
18
|
(6)
|
94
|
10
|
(15)
|
Effective portion of the change in fair value of cash flow hedges
|
(13)
|
-
|
(122)
|
(26)
|
13
|
Tax relating to items that will be reclassified subsequently to net income
|
(2)
|
2
|
6
|
4
|
-
|
(135)
|
(77)
|
(297)
|
(103)
|
(107)
|
|
Components of other comprehensive income that will not be reclassified to net income
|
|||||
Net changes of investments at fair value through other comprehensive income
|
-
|
49
|
-
|
168
|
155
|
Actuarial gains from defined benefit plans
|
24
|
10
|
84
|
28
|
85
|
Tax relating to items that will not be reclassified to net income
|
(4)
|
(14)
|
(14)
|
(29)
|
(44)
|
20
|
45
|
70
|
167
|
196
|
|
Total comprehensive income
|
520
|
210
|
1,650
|
598
|
921
|
Comprehensive income (loss) attributable to the non-controlling interests
|
(10)
|
16
|
24
|
36
|
54
|
Comprehensive income attributable to the shareholders of the Company
|
530
|
194
|
1,626
|
562
|
867
|
For the three-month
period ended
|
For the nine-month
period ended
|
For the year
ended
|
|||
September
30, 2022
|
September
30,2021
|
September
30, 2022
|
September
30, 2021
|
December
31, 2021
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Cash flows from operating activities
|
|||||
Net income
|
635
|
242
|
1,877
|
534
|
832
|
Adjustments for:
|
|||||
Depreciation and amortization
|
121
|
123
|
362
|
364
|
490
|
Reversal of fixed assets impairment
|
-
|
-
|
-
|
(9)
|
(6)
|
Exchange rate, interest and derivative, net
|
45
|
29
|
161
|
82
|
99
|
Tax expenses
|
276
|
45
|
1,027
|
132
|
260
|
Change in provisions
|
(16)
|
(4)
|
(75)
|
(13)
|
(4)
|
Other
|
(5)
|
(12)
|
(19)
|
(2)
|
(21)
|
421
|
181
|
1,456
|
554
|
818
|
|
Change in inventories
|
(160)
|
(139)
|
(455)
|
(112)
|
(267)
|
Change in trade receivables
|
84
|
(34)
|
(364)
|
(208)
|
(426)
|
Change in trade payables
|
(41)
|
33
|
58
|
108
|
274
|
Change in other receivables
|
32
|
20
|
(58)
|
(20)
|
9
|
Change in other payables
|
68
|
55
|
59
|
26
|
107
|
Net change in operating assets and liabilities
|
(17)
|
(65)
|
(760)
|
(206)
|
(303)
|
Interest paid, net
|
(13)
|
(18)
|
(68)
|
(73)
|
(89)
|
Income taxes paid, net of refund
|
(420)
|
(67)
|
(947)
|
(88)
|
(193)
|
Net cash provided by operating activities
|
606
|
273
|
1,558
|
721
|
1,065
|
Cash flows from investing activities
|
|||||
Proceeds (payments) from deposits, net
|
1
|
109
|
(37)
|
207
|
355
|
Business combinations
|
-
|
(303)
|
(18)
|
(367)
|
(365)
|
Purchases of property, plant and equipment and intangible assets
|
(184)
|
(128)
|
(535)
|
(426)
|
(611)
|
Proceeds from divestiture of assets and businesses, net of transaction expenses
|
7
|
25
|
29
|
25
|
39
|
Other
|
-
|
1
|
14
|
4
|
3
|
Net cash used in investing activities
|
(176)
|
(296)
|
(547)
|
(557)
|
(579)
|
Cash flows from financing activities
|
|||||
Dividends paid to the Company's shareholders
|
(376)
|
(68)
|
(852)
|
(169)
|
(276)
|
Receipt of long-term debt
|
201
|
620
|
734
|
1,117
|
1,230
|
Repayments of long-term debt
|
(183)
|
(458)
|
(798)
|
(913)
|
(1,120)
|
Receipts (repayments) of short-term debt, net
|
21
|
(92)
|
(51)
|
(108)
|
(58)
|
Receipts (payments) from transactions in derivatives
|
-
|
-
|
19
|
(18)
|
(17)
|
Other
|
-
|
-
|
-
|
-
|
(3)
|
Net cash provided by (used in) financing activities
|
(337)
|
2
|
(948)
|
(91)
|
(244)
|
Net change in cash and cash equivalents
|
93
|
(21)
|
63
|
73
|
242
|
Cash and cash equivalents as of the beginning of the period
|
426
|
318
|
473
|
214
|
214
|
Net effect of currency translation on cash and cash equivalents
|
(21)
|
4
|
(38)
|
14
|
17
|
Cash and cash equivalents as of the end of the period
|
498
|
301
|
498
|
301
|
473
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the three-month period ended September 30, 2022
|
|||||||||
Balance as of July 1, 2022
|
548
|
227
|
(568)
|
116
|
(260)
|
5,090
|
5,153
|
243
|
5,396
|
Share-based compensation
|
1
|
5
|
-
|
(3)
|
-
|
-
|
3
|
-
|
3
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(376)
|
(376)
|
-
|
(376)
|
Comprehensive income
|
-
|
-
|
(126)
|
3
|
-
|
653
|
530
|
(10)
|
520
|
Balance as of September 30, 2022
|
549
|
232
|
(694)
|
116
|
(260)
|
5,367
|
5,310
|
233
|
5,543
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the three-month period ended September 30, 2021
|
|||||||||
Balance as of July 1, 2021
|
547
|
217
|
(355)
|
111
|
(260)
|
3,941
|
4,201
|
178
|
4,379
|
Share-based compensation
|
-
|
2
|
-
|
(1)
|
-
|
-
|
1
|
-
|
1
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(68)
|
(68)
|
-
|
(68)
|
Comprehensive Income
|
-
|
-
|
(72)
|
33
|
-
|
233
|
194
|
16
|
210
|
Balance as of September 30, 2021
|
547
|
219
|
(427)
|
143
|
(260)
|
4,106
|
4,328
|
194
|
4,522
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the nine-month period ended September 30, 2022
|
|||||||||
Balance as of January 1, 2022
|
548
|
224
|
(444)
|
138
|
(260)
|
4,321
|
4,527
|
209
|
4,736
|
Share-based compensation
|
1
|
8
|
-
|
-
|
-
|
-
|
9
|
-
|
9
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(852)
|
(852)
|
-
|
(852)
|
Comprehensive income
|
-
|
-
|
(250)
|
(22)
|
-
|
1,898
|
1,626
|
24
|
1,650
|
Balance as of September 30, 2022
|
549
|
232
|
(694)
|
116
|
(260)
|
5,367
|
5,310
|
233
|
5,543
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the nine-month period ended September 30, 2021
|
|||||||||
Balance as of January 1, 2021
|
546
|
204
|
(334)
|
22
|
(260)
|
3,752
|
3,930
|
158
|
4,088
|
Share-based compensation
|
1
|
15
|
-
|
(11)
|
-
|
-
|
5
|
-
|
5
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(169)
|
(169)
|
-
|
(169)
|
Comprehensive income
|
-
|
-
|
(93)
|
132
|
-
|
523
|
562
|
36
|
598
|
Balance as of September 30, 2021
|
547
|
219
|
(427)
|
143
|
(260)
|
4,106
|
4,328
|
194
|
4,522
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the year ended December 31, 2021
|
|||||||||
Balance as of January 1, 2021
|
546
|
204
|
(334)
|
22
|
(260)
|
3,752
|
3,930
|
158
|
4,088
|
Share-based compensation
|
2
|
20
|
-
|
(16)
|
-
|
-
|
6
|
-
|
6
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(276)
|
(276)
|
(3)
|
(279)
|
Comprehensive income
|
-
|
-
|
(110)
|
132
|
-
|
845
|
867
|
54
|
921
|
Balance as of December 31, 2021
|
548
|
224
|
(444)
|
138
|
(260)
|
4,321
|
4,527
|
209
|
4,736
|
A. |
The Reporting Entity
|
A. |
Basis of Preparation
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended September 30, 2022
|
|||||||
Sales to external parties
|
428
|
770
|
697
|
618
|
6
|
-
|
2,519
|
Inter-segment sales
|
9
|
84
|
69
|
11
|
-
|
(173)
|
-
|
Total sales
|
437
|
854
|
766
|
629
|
6
|
(173)
|
2,519
|
Segment operating income (loss)
|
154
|
496
|
193
|
112
|
(3)
|
(24)
|
928
|
Other income not allocated to the segments
|
7
|
||||||
Operating income
|
935
|
||||||
Financing expenses, net
|
(24)
|
||||||
Income before income taxes
|
911
|
||||||
Depreciation and amortization
|
16
|
41
|
46
|
15
|
1
|
2
|
121
|
Capital expenditures
|
23
|
79
|
72
|
25
|
3
|
6
|
208
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended September 30, 2021
|
|||||||
Sales to external parties
|
383
|
353
|
554
|
495
|
5
|
-
|
1,790
|
Inter-segment sales
|
4
|
47
|
45
|
9
|
1
|
(106)
|
-
|
Total sales
|
387
|
400
|
599
|
504
|
6
|
(106)
|
1,790
|
Segment operating income (loss)
|
105
|
84
|
88
|
52
|
(3)
|
(11)
|
315
|
Other income not allocated to the segments
|
6
|
||||||
Operating income
|
321
|
||||||
Financing expenses, net
|
(34)
|
||||||
Income before income taxes
|
287
|
||||||
Depreciation and amortization
|
16
|
37
|
53
|
15
|
1
|
1
|
123
|
Capital expenditures
|
18
|
58
|
51
|
13
|
1
|
4
|
145
|
Capital expenditures as part of business combination
|
-
|
-
|
-
|
307
|
-
|
-
|
307
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the nine-month period ended September 30, 2022
|
|||||||
Sales to external parties
|
1,394
|
2,375
|
2,277
|
1,863
|
15
|
-
|
7,924
|
Inter-segment sales
|
23
|
225
|
202
|
32
|
2
|
(484)
|
-
|
Total sales
|
1,417
|
2,600
|
2,479
|
1,895
|
17
|
(484)
|
7,924
|
Segment operating income (loss)
|
533
|
1,482
|
661
|
346
|
(7)
|
(68)
|
2,947
|
Other income not allocated to the segments
|
29
|
||||||
Operating income
|
2,976
|
||||||
Financing expenses, net
|
(72)
|
||||||
Income before income taxes
|
2,904
|
||||||
Depreciation and amortization
|
46
|
121
|
140
|
46
|
2
|
7
|
362
|
Capital expenditures
|
63
|
254
|
181
|
63
|
7
|
10
|
578
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the nine-month period ended September 30, 2021
|
|||||||
Sales to external parties
|
1,183
|
992
|
1,560
|
1,163
|
19
|
-
|
4,917
|
Inter-segment sales
|
12
|
137
|
123
|
15
|
2
|
(289)
|
-
|
Total sales
|
1,195
|
1,129
|
1,683
|
1,178
|
21
|
(289)
|
4,917
|
Segment operating income (loss)
|
324
|
155
|
207
|
93
|
(7)
|
(36)
|
736
|
Other income not allocated to the segments
|
13
|
||||||
Operating income
|
749
|
||||||
Financing expenses, net
|
(84)
|
||||||
Share in earnings of equity-accounted investees
|
1
|
||||||
Income before income taxes
|
666
|
||||||
Depreciation and amortization
|
47
|
108
|
161
|
41
|
2
|
5
|
364
|
Capital expenditures
|
49
|
185
|
166
|
36
|
4
|
10
|
450
|
Capital expenditures as part of business combination
|
-
|
-
|
-
|
377
|
-
|
-
|
377
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2021
|
|||||||
Sales to external parties
|
1,601
|
1,598
|
2,087
|
1,644
|
25
|
-
|
6,955
|
Inter-segment sales
|
16
|
178
|
167
|
26
|
3
|
(390)
|
-
|
Total sales
|
1,617
|
1,776
|
2,254
|
1,670
|
28
|
(390)
|
6,955
|
Segment operating income (loss)
|
435
|
399
|
294
|
135
|
(8)
|
(61)
|
1,194
|
Other income not allocated to the segments
|
16
|
||||||
Operating income
|
1,210
|
||||||
Financing expenses, net
|
(122)
|
||||||
Share in earnings of equity-accounted investees
|
4
|
||||||
Income before income taxes
|
1,092
|
||||||
Depreciation amortization and impairment
|
65
|
148
|
207
|
62
|
2
|
-
|
484
|
Capital expenditures
|
74
|
270
|
228
|
74
|
6
|
17
|
669
|
Capital expenditures as part of business combination
|
-
|
-
|
-
|
377
|
-
|
-
|
377
|
7-9/2022
|
7-9/2021
|
1-9/2022
|
1-9/2021
|
1-12/2021
|
||||||
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
Brazil
|
554
|
22
|
385
|
22
|
1,841
|
23
|
701
|
14
|
1,178
|
17
|
USA
|
418
|
17
|
269
|
15
|
1,124
|
14
|
789
|
16
|
1,091
|
16
|
China
|
342
|
14
|
288
|
16
|
1,212
|
15
|
788
|
16
|
1,060
|
15
|
India
|
168
|
7
|
48
|
3
|
352
|
4
|
134
|
3
|
213
|
3
|
Germany
|
103
|
4
|
74
|
4
|
323
|
4
|
263
|
5
|
345
|
5
|
United Kingdom
|
94
|
4
|
87
|
5
|
340
|
4
|
302
|
6
|
386
|
6
|
Spain
|
89
|
4
|
64
|
4
|
285
|
4
|
212
|
4
|
280
|
4
|
Israel
|
87
|
3
|
70
|
4
|
268
|
3
|
208
|
4
|
291
|
4
|
France
|
72
|
3
|
64
|
4
|
239
|
3
|
205
|
4
|
270
|
4
|
Netherlands
|
67
|
3
|
36
|
2
|
220
|
3
|
98
|
2
|
127
|
2
|
All other
|
525
|
19
|
405
|
21
|
1,720
|
23
|
1,217
|
26
|
1,714
|
24
|
Total
|
2,519
|
100
|
1,790
|
100
|
7,924
|
100
|
4,917
|
100
|
6,955
|
100
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended September 30, 2022
|
|||||||
Asia
|
157
|
326
|
144
|
61
|
-
|
(3)
|
685
|
Europe
|
136
|
156
|
227
|
211
|
4
|
(63)
|
671
|
South America
|
11
|
180
|
131
|
264
|
-
|
(11)
|
575
|
North America
|
110
|
113
|
193
|
33
|
-
|
(4)
|
445
|
Rest of the world
|
23
|
79
|
71
|
60
|
2
|
(92)
|
143
|
Total
|
437
|
854
|
766
|
629
|
6
|
(173)
|
2,519
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended September 30, 2021
|
|||||||
Asia
|
149
|
107
|
177
|
45
|
-
|
(2)
|
476
|
Europe
|
121
|
89
|
154
|
174
|
5
|
(48)
|
495
|
South America
|
14
|
112
|
87
|
212
|
-
|
-
|
425
|
North America
|
86
|
43
|
132
|
30
|
-
|
-
|
291
|
Rest of the world
|
17
|
49
|
49
|
43
|
1
|
(56)
|
103
|
Total
|
387
|
400
|
599
|
504
|
6
|
(106)
|
1,790
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the nine-month period ended September 30, 2022
|
|||||||
Asia
|
557
|
764
|
633
|
224
|
-
|
(27)
|
2,151
|
Europe
|
441
|
516
|
698
|
703
|
13
|
(170)
|
2,201
|
South America
|
31
|
836
|
428
|
653
|
-
|
(29)
|
1,919
|
North America
|
321
|
254
|
518
|
132
|
1
|
(7)
|
1,219
|
Rest of the world
|
67
|
230
|
202
|
183
|
3
|
(251)
|
434
|
Total
|
1,417
|
2,600
|
2,479
|
1,895
|
17
|
(484)
|
7,924
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the nine-month period ended September 30, 2021
|
|||||||
Asia
|
427
|
294
|
467
|
147
|
-
|
(13)
|
1,322
|
Europe
|
407
|
330
|
455
|
562
|
18
|
(130)
|
1,642
|
South America
|
49
|
240
|
251
|
257
|
-
|
(1)
|
796
|
North America
|
268
|
129
|
371
|
92
|
1
|
(4)
|
857
|
Rest of the world
|
44
|
136
|
139
|
120
|
2
|
(141)
|
300
|
Total
|
1,195
|
1,129
|
1,683
|
1,178
|
21
|
(289)
|
4,917
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2021
|
|||||||
Asia
|
597
|
478
|
617
|
206
|
1
|
(23)
|
1,876
|
Europe
|
530
|
430
|
611
|
727
|
23
|
(162)
|
2,159
|
South America
|
64
|
467
|
343
|
436
|
-
|
(5)
|
1,305
|
North America
|
363
|
209
|
491
|
127
|
1
|
(5)
|
1,186
|
Rest of the world
|
63
|
192
|
192
|
174
|
3
|
(195)
|
429
|
Total
|
1,617
|
1,776
|
2,254
|
1,670
|
28
|
(390)
|
6,955
|
As of September, 30
|
As of December, 31
|
|
2022
|
2021
|
|
$ millions
|
$ millions
|
Goodwill
|
||
Phosphate Solutions
|
107
|
114
|
Industrial Products
|
87
|
91
|
Growing Solutions
|
260
|
260
|
Potash
|
18
|
19
|
Other
|
18
|
18
|
490
|
502
|
|
Trademarks
|
31
|
32
|
521
|
534
|
September 30, 2022
|
September 30, 2021
|
December 31, 2021
|
||||
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Loans bearing fixed interest
|
327
|
297
|
423
|
409
|
407
|
408
|
Debentures bearing fixed interest
|
||||||
Marketable
|
1,349
|
1,241
|
1,512
|
1,721
|
1,524
|
1,730
|
Non-marketable
|
193
|
189
|
193
|
206
|
195
|
208
|
1,869
|
1,727
|
2,128
|
2,336
|
2,126
|
2,346
|
Level 1
|
September 30,
2022
|
September 30,
2021
|
December 31, 2021
|
$ millions
|
$ millions
|
$ millions
|
Investments at fair value through other comprehensive income
|
-
|
103
|
-
|
Level 2
|
September 30,
2022
|
September 30,
2021
|
December 31, 2021
|
$ millions
|
$ millions
|
$ millions
|
Derivatives designated as economic hedge, net
|
(31)
|
1
|
15
|
Derivatives designated as cash flow hedge, net
|
(4)
|
77
|
120
|
(35)
|
78
|
135
|
ICL Group Limited Q3 2022 Results 54
|
A. |
Share based payments - non-marketable options
|
1. |
On March 30, 2022, the general meeting of shareholders approved an equity-based award in the form of about 3 million non-marketable and
non-transferable stock options for the years 2022 – 2024, under the amended 2014 Equity Compensation Plan, to the CEO and Chairman of the Board. The vesting period of the options will be in three equal tranches, upon the lapse of 12 months,
24 months and 36 months from the grant date (March 30, 2022). The fair value at the grant date was about $8 million.
|
2. |
During the nine and three-month periods ended September 30, 2022, 6.8 million options and 4.7 million options were exercised, respectively.
|
B. |
Dividend distributions
|
Decision date for dividend distribution by the Board of Directors
|
Actual date of dividend distribution
|
Distributed amount
($ millions)
|
Dividend per share ($)
|
February 8, 2022
|
March 8, 2022
|
169
|
0.13
|
May 10, 2022
|
June 15, 2022
|
307
|
0.24
|
July 26, 2022
|
September 14, 2022
|
376
|
0.29
|
November 8, 2022 *
|
December 14, 2022
|
314
|
0.24
|
1. |
Note 17 to the Annual Financial Statements provides a disclosure regarding the Israeli Water Authority’s decision that fees will not be charged
for water production within the concession area, based on the opinion of the Ministry of Justice, according to which the royalties arrangement established in the Dead Sea Concession Law, 5771-1961, is the sole arrangement for collecting
payment for the right to extract water in the concession area, and therefore that it is not legally possible to impose additional charges for water fees in addition to the royalties (hereinafter –
the Opinion). In September 2022, the Company was presented with two petitions filed in Israel’s Supreme Court, one by Adam Teva V’Din and the second by Lobby 99 Ltd., against the Water Authority, Israel’s Attorney General, the Ministry of
Justice, Mekorot Water Company Ltd. and the Company. As part of the petitions, the petitioners requested that the Supreme Court rule that the said Opinion is incorrect and, therefore, the Company should be obliged to pay water fees for
water extracted from wells in the concession area in addition to the payment of royalties beginning from the date of the amendment to the Water Law enacted in 2018. Accordingly, the petitioners
requested that the Supreme Court order the Water Authority to collect water fees from the Company for the period between 2018-2020, which according to one of the petitioners, allegedly amounts to $24 million. In October 2022, a decision
was made to hold a consolidated hearing regarding both petitions in April 2023. The Company rejects the claims made in the petitions and believes it is more likely than not that its position will be accepted.
|
2. |
Further to Note 18 to the Annual Financial Statements regarding an application for certification of a class action with respect to the IT
(Harmonization) project management and termination, in September 2022, the parties announced their agreement to resort to mediation. Considering the preliminary stage of the proceeding, it is difficult to estimate its outcome. No
provision has been recorded in the Company's financial statements.
|
3. |
Note 18 to the Annual Financial Statements provides a disclosure regarding an application for certification of a class action which was filed
against the Company, for alleged exploitation of its monopolistic position to charge consumers, in Israel, excessive and unfair prices for products classified as "solid phosphate fertilizer" between 2011 and 2018. Following the Central
District Court’s decision in March 2020 to grant the Company a motion for delay in proceedings, in September 2022 the proceedings were renewed, at the request of the applicants, following a decision made in July 2022 by the Supreme Court
in a similar proceeding. The Company denies the allegations and believes it is more likely than not that its position will be accepted.
|
4. |
Further to Note 18 to the Annual Financial Statements, regarding Energean's continued delays in supply of natural gas (NG) and the measures
that the Company is taking to secure its supply of NG until full gas supply is obtained from Energean, or other sources. Recently, Energean started NG production activities. In order to ensure the ongoing operations of ICL’s facilities
until Energean enters commercial production, the Company signed NG supply agreements with various market sources, including Leviathan reservoir, which are valid until the end of the first quarter of 2023. The Company believes it is more
likely than not that it will obtain sufficient NG for its facilities in Israel until the full supply is obtained from Energean. The Company intends to exercise all its legal rights in connection with Energean's continuous delays.
|
5. |
Further to Note 15 to the Annual Financial Statements regarding the calculation of the Surplus Profit Levy, according to the Israeli Law for
Taxation of Profits from Natural Resources (hereinafter - the Law), at the end of June 2022, a settlement agreement was signed with the Israeli Tax Authority, which entered into force on July 26, 2022. The settlement agreement provides
final assessments for the tax years 2016-2020, as well as outlines understandings for the calculation of the levy for the years from 2021 and onwards.
|
6. |
In June 2022, an unexpected flow of brine was discovered above the ground at the outskirts of an alluvial fan area, which according to initial
tests by the Company, appears to have resulted from a combination of seepage from a certain area of the feeder canal of ICL Dead Sea’s pumping station P-9 (hereinafter P-9), which according to the Company's estimations does not exceed the
approved design specifications of P-9, and unique ground conditions. The Company is continuously acting to rectify any resultant environmental impacts to the extent required, including, at the request of the Israeli Nature and Parks
Authority, implementing a project involving the installation of sealing sheets over an approximately 2km long section of the 15km feeder canal in the area of the fan (hereinafter the Project). Completion of the Project is expected within
a few months. The Company has already implemented intermediary actions to prevent increased salinity flow to the surface. In June 2022, as part of a hearing process, the District Manager of the Ministry of Environmental Protection
recommended opening an investigation by the Green Police. As of the reporting date, the Company is not aware of any such investigation.
|
7. |
Further to Note 18 to the Company’s Annual Financial Statements regarding the regulation of Rotem Amfert Israel's Phosphogypsum storage area and
the new approved master plan, in April 2022 Israel’s Planning Administration stated its position that the Company should pay insignificant fees to obtain required building permits. In June 2022, the Tamar Regional Council rejected this
position. The Company believes that it is more likely than not that its position will be accepted in a legal proceeding to determine the amounts of fees under the current law.
|
8. |
Note 18 to the Annual Financial Statements provides disclosure regarding the application for certification of a class action against the Company
for alleged environmental hazards that resulted from the leakage of wastewater to a groundwater aquifer in the vicinity of the Bokek stream. The leakage began in the 1970’s during which time the Company was government owned and ended by
2000. Following a decision in April 2022 by the Be'er Sheva District Court to dismiss the application with prejudice, the plaintiffs filed an appeal in June 2022 to Israel’s Supreme Court against the district court’s decision. It is
difficult to estimate the outcome of the appeal at this preliminary stage.
|
9. |
As part of the Company's strategy to divest low synergy businesses and non-core business activities, in January 2022, the Company entered into a
definitive agreement to sell its 50% share in its joint venture, Novetide Ltd., which was accounted for according to the equity method. In March 2022, the sale was completed. Consideration from the sale was $33 million, of which $8
million represents an estimate for the fair value of a contingent consideration. As a result, the Company recognized a capital gain of $22 million.
|
10. |
Further to Note 18 to the Annual Financial Statements, regarding the expansion of gypsum and flotation ponds at YPH, in April 2022, the Company
received an official certification enabling the required expansion of the ponds.
|
|
ICL Group Ltd.
|
||
|
|
||
|
By:
|
/s/ Aviram Lahav
|
|
|
|
Name:
|
Aviram Lahav
|
|
|
Title:
|
Chief Financial Officer
|
|
ICL Group Ltd.
|
||
|
|
||
|
By:
|
/s/ Aya Landman
|
|
|
|
Name:
|
Aya Landman
|
|
|
Title:
|
VP, Company Secretary & Global Compliance
|