ICL Group Ltd. reported on June 22 that it expects to see a negative impact on its FY2023 EBITDA outlook of approximately $400 million due to the lower-than-anticipated China potash contract settlement price.
The group also warned of a further reduction in EBITDA guidance of approximate $200 million if a recovery in demand for flame retardants is delayed until the end of this year. ICL said the recovery, which was expected in the second half of 2023, has not yet materialized.
ICL reported on June 22 that it has signed contracts with its customers in China for the supply of potash during 2023 at a selling price of $307/mt CFR, in line with recent contract settlements. The new contracts between ICL and China provide for the supply of an aggregate volume of 800,000 mt of potash in 2023, with mutual options for an additional 350,000 mt.
ICL in May reiterated its guidance for full-year 2023 adjusted EBITDA of $2.2-$2.4 billion, with approximately $1.1 billion of that amount to come from the company’s specialties focused businesses (GM May 12, p. 28).
The group had stuck to its EBITDA outlook view despite a 39% year-over-year drop in first-quarter adjusted EBITDA, to $610 million, amid significant price declines for its products from 2022’s peak levels.