ICL (formerly called Israel Chemicals Ltd.), Tel Aviv, reported a sharp downturn in first-quarter net income attributable to shareholders to $60 million on sales of $1.32 billion, down from the year-ago $139 million and $1.42 billion, respectively. Adjusted net income was $60 million versus $150 million a year-ago.
Diluted earnings per share came in at $0.05 compared with first-quarter 2019’s $0.11. Adjusted EBITDA fell 29 percent to $250 million, down from $350 million. Sales were 7 percent lower versus year-ago numbers.
ICL said the first-quarter results were impacted by the continued decline in potash and phosphate prices and the delay in signing a new potash supply contract in China, which has since been signed. The COVID-19 pandemic impacted operations, but did not have a material impact on first-quarter financial results, but it could affect the 2020 annual results, ICL President and CEO, Raviv Zoller said.
The company’s facilities have been operating at full capacity except for the Boulby polyhalite operation in the U.K., which is currently operating at about 70 percent of capacity, and the potash and salt mining operations in Spain, which were temporarily halted for three weeks in late March/April, but have since resumed at about 60 percent of capacity.