ICL – ICL: Net profit fell by 46% in 2020 – the capital market

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Publishes its financial statements for the fourth quarter of 2020 and for the entire year with sales growth and operating profit in the fourth quarter. Non-GAAP net income attributable to shareholders was approximately $ 258 million, compared to $ 479 million in 2019, a 46% drop. However, adjusted net income for the fourth quarter was approximately $ 68 million, compared to $ 48 million last year, an increase of approximately 42%.

The company has also released its expectations for 2021. The company expects a coordinated EBITDA range of between $ 1.02 billion and $ 1.12 billion, compared to about $ 0.99 billion last year. Since the Corona crisis, the share has risen by 88% and the company is traded at a market value of about NIS 23.7 billion.

Growth in the fourth quarter – diving at an annual rate
Adjusted EBITDA for the fourth quarter of 2020 was approximately $ 268 million, an increase of over 30% compared to the corresponding quarter last year, but on an annual basis it is a decrease of approximately 17% from $ 1.2 billion in 2019 to $ 990 million In 2020. Operating profit in the fourth quarter amounted to $ 139 million, a growth of about 60% compared to the corresponding quarter last year, while all four business divisions showed growth in the current quarter compared to the corresponding period last year, but on an annual basis it is a decrease of 73% compared to 2019.

The company topped analysts’ forecasts for revenue. The company’s revenue for 2020 was about $ 5 billion, compared to analysts’ expectations of $ 4.76 billion for the entire year. Consolidated fourth-quarter sales totaled $ 1.3 billion compared to analysts’ expected 1.19.

Cash flow is increasing – but so are liabilities
Cash flow from operating activities increased by 22% to a total of $ 258 million. As of December 31, 2020, the Company had at its disposal cash and cash equivalents, short-term investments and deposits, in the amount of $ 314 million, compared to $ 191 million at the end of 2019. In addition, at the end of 2020, the Company had over $ 1 billion in credit facilities Unused.

At the end of 2020 the company’s net financial liabilities amounted to $ 2.4 billion, an increase of $ 53 million compared to last year.

The company will distribute a $ 34 million dividend
For the results of the fourth quarter of 2020, the Board of Directors announced a dividend of 2.65 cents per share, or a total of approximately $ 34 million. The dividend will be paid on March 16, 2021. The determining date is March 3, 2021.

The corona has materially affected business – and will continue to hurt
According to the company, during 2020, most of its production facilities continued to operate as usual as it was defined as a vital business and the Dead Sea factories even achieved a record level of potash production.

The outbreak of the corona plague had a negative impact on the company’s business performance in 2020, with revenues declining mainly due to declining demand for some of the company’s industrial products segment, such as clear solutions due to significant price and oil declines, and some flame retardants due to declining automotive and electronics activities. . In addition, operating results were adversely affected, mainly due to a decrease in manufacturing activity in Europe and additional operating costs associated with the corona plague. According to the company, the effects were partially offset by streamlining measures implemented in the company.

The Company anticipates that the Corona may continue to hurt results over the coming quarters, including an impact on revenue and operating profit, due to declining global demand for some of the Company’s products in the end markets, as well as restrictions, closures and safety measures affecting the Company’s operations. Therefore, according to the company, it has decided to strengthen its financial flexibility and it holds more than $ 1 billion. At present the company cannot accurately estimate the full future impact of the corona plague on its operations.