Phosphates earnings at Israeli chemicals and fertilizer producer ICL fell by 64pc on the year last quarter, as lower fertilizer prices hit revenues amid an overall drop in commodity levels.
ICL reported a year-on-year drop in revenue from white phosphoric acid, driven by lower prices in most regions. Sales volumes of industrial specialties were down in most regions, except for Asia-Pacific, while sales of food specialties in Europe and the Americas also weighed on revenue, despite stable pricing.
ICL's operations in Israel continue "without significant disruption", chief executive Raviv Zoller said, in the wake of the 7 October attacks and conflict with Gaza-based Islamist group Hamas. ICL produced 1.04mn t of phosphate-based fertilizers after processing at its Rotem site in Israel last year, according to its latest annual report.
The firm's LFP cathode-active-material facility expansion in the US is on track, ICL said. The plant will operate two 15,000 t/yr lines once complete. ICL has previously outlined its aim to have the facility operational in 2024 and running at full production by 2025.
Earnings slump continues
The phosphates segment reported operating profit of $69mn for July-September, down from $193mn a year earlier. The segment posted a 74pc drop in operating profit to $71mn in the second quarter. Global phosphate prices hit a recent record peak in April-June last year before bottoming out in July this year.
The Argus DAP index, a volume-weighted basket of DAP prices from the top-five export markets, averaged 249 points in the third quarter of last year, compared with 149 points in July-September this year (see chart). International phosphates prices have rebounded since July and the index has averaged 168 points in the fourth quarter.
Phosphates revenue fell to $620mn in July-September, down from $766mn, of which specialties products accounted for $364mn and phosphates commodity fertilizers totalled $256mn.
The phosphate division's earnings before interest, taxation, depreciation and amortisation (Ebitda) stood at $117mn in the third quarter, down from $239mn in the same period last year, implying an Ebitda margin of around 19pc for the quarter, down from 31pc a year earlier.
