ICL results up; touts Spanish expansion
Israel Chemicals Ltd. reported higher revenues and sharply higher net profits in the third quarter of 2014. ICL attributed the improvement to higher volumes of potash and bromine based flame retardants. Revenues rose by nearly 8 percent to $1.559 billion versus $1.454 billion in the corresponding quarter in 2013. Net profits totaled $180 million versus $78 million or $196 million in adjusted net profits last year.
The volume of potash sold increased by 30 percent to 1.32 million mt versus 1.02 million mt in the third quarter of 2013. The company attributed the increase to a recovery in the potash market in all regions with particularly strong demand in China and India. Operating profit from potash grew by 17 percent to $131 million versus $112 million last year. ICL sold 440,000 mt of phosphate fertilizers, a 4 percent increase over the 404,000 mt in the third quarter of 2013. Operating profit rose to $37 million from $22 million. ICL said that improved efficiency at its Rotem plant in southern Israel led to improved operating profits and record acid production.
ICL also announced that it will invest $435 million in several stages to increase capacity and optimize production at its potash production plant in Suria, Spain. The ICL board has approved $330 million in projects that it says will reduce the average cost of production in Spain to levels closer to those in Israel.
The investment plan calls for increasing production to 1.4 million mt/y, increasing granular potash capacity to approximately 100 percent of the potash produced at the site, doubling production of vacuum salt to 1.5 million mt/y, upgrading logistics infrastructure at the mine, at the factory and the port of Barcelona to enable production, transport and export of 2.3 million mt of potash. In addition the company will take steps to reduce the environmental footprint of its operations in Spain. ICL has also approved the carrying out of an advanced 3D feasibility study for developing a new potash mine in the franchise area in Catalonia which could eventually lead to increasing annual production by a further 1 million mt/y.