Lower-than-expected contract price and delayed
market recovery to impact annual EBITDA guidance
ICL (NYSE: ICL) (TASE: ICL), a leading global specialty
minerals company, today announced an update to its 2022 to 2024
framework agreement with its customers in China. The company has
agreed to supply those customers with an aggregate amount of
800,000 metric tons of potash during 2023, with mutual options for
an additional 350,000 tons. The agreed upon price is $307 per ton,
which aligns with recent contract settlements.
Due to the lower-than-anticipated potash price, ICL expects to
see a negative impact to its 2023 EBITDA guidance of approximately
$400 million. In addition, a recovery in demand for flame
retardants, which was expected in the second half of the year, has
not yet begun to materialize. If a recovery is delayed until the
end of 2023, it could result in a further reduction of
approximately $200 million in EBITDA guidance for the year. The
company reiterated it is on track with regard to its five-year plan
and does not expect these developments to have a material impact on
its execution.
About ICL
ICL Group is a leading global specialty minerals company, which
creates impactful solutions for humanity's sustainability
challenges in the food, agriculture and industrial markets. ICL
leverages its unique bromine, potash and phosphate resources, its
global professional workforce, and its sustainability focused
R&D and technological innovation capabilities, to drive the
company's growth across its end markets. ICL shares are dual listed
on the New York Stock Exchange and the Tel Aviv Stock Exchange
(NYSE and TASE: ICL). The company employs more than 12,500 people
worldwide, and its 2022 revenues totaled approximately $10
billion.
For more information, visit ICL's website at icl-group.com. To
access ICL's interactive CSR report, visit
icl-group-sustainability.com. You can also learn more about ICL on
Facebook, LinkedIn, YouTube and Instagram.
Guidance
The company only provides guidance on a non-GAAP basis. The
company does not provide a reconciliation of forward-looking
adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the
inherent difficulty in forecasting, and quantifying certain amounts
that are necessary for such reconciliation, in particular, because
special items such as restructuring, litigation, and other matters,
used to calculate projected net income (loss) vary dramatically
based on actual events, the company is not able to forecast on a
GAAP basis with reasonable certainty all deductions needed in order
to provide a GAAP calculation of projected net income (loss) at
this time. The amount of these deductions may be material, and
therefore could result in projected GAAP net income (loss) being
materially less than projected adjusted EBITDA (non-GAAP). The
guidance speaks only as of the date hereof. We undertake no
obligation to update any of these forward-looking statements to
reflect events or circumstances after the date of this news release
or to reflect actual outcomes, unless required by law. Specialties
focused businesses are represented by the Industrial Products, and
Growing Solutions segments, and the specialties part of the
Phosphate Solutions segment. We present EBITDA from the phosphate
specialties part of the Phosphate Solutions segment as we believe
this information is useful to investors in reflecting the specialty
portion of our business.
Non-GAAP Statement
The company discloses in this quarterly announcement non-IFRS
financial measures titled adjusted operating income, adjusted net
income attributable to the company’s shareholders, diluted adjusted
earnings per share and adjusted EBITDA. The management uses
adjusted operating income, adjusted net income attributable to the
company’s shareholders, diluted adjusted earnings per share and
adjusted EBITDA to facilitate operating performance comparisons
from period to period. The company calculates adjusted operating
income by adjusting operating income to add certain items, as set
forth in the reconciliation table under "adjustments to reported
operating and net income (non-GAAP)", in the appendix below.
Certain of these items may recur. The company calculates adjusted
net income attributable to the company’s shareholders by adjusting
net income attributable to the company’s shareholders to add
certain items, as set forth in the reconciliation table under
"adjustments to reported operating and net income (non-GAAP)", in
the appendix below, excluding the total tax impact of such
adjustments. The company calculates diluted adjusted earnings per
share by dividing adjusted net income by the weighted-average
number of diluted ordinary shares outstanding. The company
calculates adjusted EBITDA as net income before financing expenses,
net, taxes on income, share in earnings of equity-accounted
investees, depreciation and amortization and adjust items presented
in the reconciliation table under "consolidated adjusted EBITDA and
diluted adjusted earnings per share for the periods of activity" in
the appendix below, which were adjusted for in calculating the
adjusted operating income. Commencing with the year 2022, the
company’s adjusted EBITDA calculation is no longer adding back
minority and equity income, net. While minority and equity income,
net reflects the share of an equity investor in one of the
company’s owned operations, since adjusted EBITDA measures the
company’s performance as a whole, its operations and its ability to
satisfy cash needs before profit is allocated to the equity
investor, management believes that adjusted EBITDA before deduction
of such item is more reflective.
You should not view adjusted operating income, adjusted net
income attributable to the company’s shareholders, diluted adjusted
earnings per share or adjusted EBITDA as a substitute for operating
income or net income attributable to the company’s shareholders
determined in accordance with IFRS, and you should note that the
definitions of adjusted operating income, adjusted net income
attributable to the company’s shareholders, diluted adjusted
earnings per share and adjusted EBITDA may differ from those used
by other companies. Additionally, other companies may use other
measures to evaluate their performance, which may reduce the
usefulness of ICL’s non-IFRS financial measures as tools for
comparison. However, the company believes adjusted operating
income, adjusted net income attributable to the company’s
shareholders, diluted adjusted earnings per share and adjusted
EBITDA provide useful information to both management and investors
by excluding certain items management believes are not indicative
of ongoing operations. Management uses these non-IFRS measures to
evaluate the company's business strategies and management's
performance. The company believes these non‑IFRS measures provide
useful information to investors because they improve the
comparability of financial results between periods and provide for
greater transparency of key measures used to evaluate
performance.
The company presents a discussion in the period-to-period
comparisons of the primary drivers of changes in the results of
operations. This discussion is based in part on management’s best
estimates of the impact of the main trends on its businesses. The
company has based the following discussion on its financial
statements. You should read such discussion together with the
financial statements.
Forward Looking Statements
This announcement contains statements that constitute
forward‑looking statements, many of which can be identified by the
use of forward‑looking words such as “anticipate,” “believe,”
“could,” “expect,” “should,” “plan,” “intend,” “estimate” and
“potential,” among others.
Forward-looking statements appear in this press release and
include, but are not limited to, statements regarding the company’s
intent, belief or current expectations. Forward-looking statements
are based on management’s beliefs and assumptions and on
information currently available to management. Such statements are
subject to risks and uncertainties, and actual results may differ
materially from those expressed or implied in the forward-looking
statements due to various factors, including, but not limited to:
estimates, forecasts and statements as to management's expectations
with respect to, among other things, business and financial
prospects, financial multiples and accretion estimates, future
trends, plans, strategies, positioning, objectives and
expectations, general economic, market and business conditions,
supply chain and logistics disruptions, energy storage and electric
vehicle growth, the potential for new COVID-19 variants, global
unrest and conflict, governmental and regulatory requirements and
actions by governmental authorities, including changes in
government policy, changes in environmental, tax and other laws or
regulations and the interpretation thereof. As a result of the
foregoing, readers should not place undue reliance on the
forward‐looking statements contained in this press release
concerning the timing of the transaction, or other more specific
risks and uncertainties facing ICL, such as those set forth in the
“Risk Factors” section of its Annual Report on Form 20-F filed on
February 23, 2022, as such risk factors may be updated from time to
time in its Current Reports on Form 6-K and other filings ICL makes
with the U.S. Securities and Exchange Commission from time to
time.
Forward-looking statements refer only to the date they are made,
and the company does not undertake any obligation to update them in
light of new information or future developments or to publicly
release any revisions to these statements in order to reflect later
events or circumstances or to reflect the occurrence of
unanticipated events.
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version on businesswire.com: https://www.businesswire.com/news/home/20230622778308/en/
Investor and Press Contact – Global Peggy Reilly Tharp
VP, Global Investor Relations +1-314-983-7665
Peggy.ReillyTharp@icl-group.com
Investor and Press Contact - Israel Adi Bajayo ICL
Spokesperson +972-3-6844459 Adi.Bajayo@icl-group.com
ICL (NYSE:ICL)
過去 株価チャート
から 4 2024 まで 5 2024
ICL (NYSE:ICL)
過去 株価チャート
から 5 2023 まで 5 2024