ICL will supply potash in Europe probably to Norway in a deal estimated at $ 230 million

The ICL company managed by Raviv Zoler reports on a major deal - the company signed a memorandum of understanding for the supply of potash in Europe. The identity of the customer was not disclosed, but according to estimates, it is the Norwegian capital. This is an activity of 300 thousand tons per year and given the price of potash, it is a transaction with a financial scope of approximately 220-240 million dollars.
This deal comes against the backdrop of the Russia-Ukraine war and the suspension of purchases from Russia and Belarus. Europe sanctions Russia and this may have transferred customers to ICL.
In the meantime, this is a memorandum of understanding, which should be formed into a binding long-term agreement towards 2023. The intention is that it will be a two-year agreement. ICL produces potash in Israel and Spain.
The company recently reported record results in the second quarter. Commodity prices have dropped dramatically in recent months, and this may have an impact on future reports, and especially next year, but at least for now the company is even raising the forecasts for the rest of the year. Sales totaled $2.88 billion in the quarter, a 78% increase compared to $1.62 billion in the same quarter last year. Operating profit amounted to $1.14 billion, a 369% increase compared to a total of $243 million and a 383% increase compared to an adjusted operating profit of $236 million in the corresponding quarter last year.
The net profit amounted to a total of 563 million dollars, an increase of 302% compared to the corresponding quarter, while the adjusted net profit, amounting to 751 million dollars, increased by 456%. Adjusted EBITDA amounted to $1.26 billion, an increase of 249% compared to $360 million in the corresponding quarter last year. The EBITDA margin was 43.7% compared to 22.3% in the corresponding quarter last year. For the results of the quarter, the company will distribute a dividend of 29.18 cents per share or 375 million dollars, compared to only 68 million dollars in the corresponding quarter.
In light of the strong results, the company raises the expectation for an adjusted EBITDA of 3.8 to 4 billion dollars compared to a previous forecast of 3.5 - 3.75 billion dollars. About 1.5 to 1.6 billion of which is expected to come from the company's special products activity, compared to previous expectations of 1.3 to 1.4 billion dollars.
Potash sales climbed to $951 million, 150% more than in the corresponding quarter. Potash sales were affected by the spike in grain prices (corn by 15.7%, wheat by 62.5%). The average price per ton of potash was $750 per ton - a 167% increase compared to the corresponding quarter.