Operating income at ICL Fertilizers, the fertilizer segment of Israel Chemicals Ltd. (ICL), saw an 85 percent drop in operating income during the second quarter ending June 30, 2009, to $111.5 million on sales of $465.1 million, versus the year-ago $731.4 million and $1.35 billion, respectively.
Fertilizer six-month operating income was $250.3 million on sales of $836.2 million, versus the year-ago $1.14 billion and $2.3 billion, respectively.
It said the first-half drop reflects a sharp decline in quantities sold of most of the segment’s products and lower prices for phosphate fertilizers, mitigated partially by the period’s higher-than-average selling prices for potash as compared to year-ago levels.
While ICL is upbeat that potash demand is continuing to return in Brazil and India, it says it continues to stockpile potash at the Dead Sea. It noted that it has signed a nine-month supply agreement with its Indian customers for the sale of 1,085,000 mt of potash (including optional quantities) at $460/mt DEL.
Israel Chemical net income to shareholders was $152.3 million on sales of $1.1 billion for the second quarter, down from the year-ago $703.2 million and $2.1 billion, respectively. EBITDA dropped to $235.5 million from $904.3 million.
Six-month net income was $311.1 million on sales of $1.98 billion, down from the year-ago $1.05 billion and $3.61 billion. EDITDA was down at $495 million from $1.41 billion.
ICL said that as of June 30, company net debt was $756 million, the lowest level in company history.
ICL announced that it will pay a dividend totaling $100 million on Sept. 16, 2009, in respect of second-quarter results. Earlier dividends paid this year include $100 million on June 17 for the first quarter, and $175 million on May 4 for fourth quarter 2008.