ICL Reports Record Full Year and Fourth Quarter 2022 Results
Company concludes record year, as sales topped more than $10 billion, with benefit from strong performance of specialties businesses and significant market upside
TEL AVIV, Israel–(BUSINESS WIRE)–ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today reported its fourth quarter and full year financial results for the year ended December 31, 2022. Consolidated annual sales were $10,015 million, an increase of 44% year-over-year versus $6,955 million recorded in 2021. Annual operating income of $3,516 million was up 191%, while adjusted operating income of $3,509 million was up 194%. Net income of $2,159 million in 2022 was 176%, while adjusted net income of $2,350 million was up 185%. Annual adjusted EBITDA of $4,007 million was up 138% over $1,687 million, and adjusted EBITDA margin of 40% was up significantly versus 24%. Diluted earnings per share for 2022 of $1.67 were up 178% versus $0.60 while adjusted diluted earnings per share of $1.82 were up 185% versus $0.64.
For the fourth quarter ended December 31, 2022, consolidated sales of $2,091 million were up 3% year-over-year versus $2,038 million. Operating income of $540 million was up 17% versus $461 million, while adjusted operating income of $562 million was up 23% versus $458 million. Net income of $331 million was up 17%, while adjusted net income of $358 million was up 6%. Adjusted EBITDA of $698 million was up 19% versus $587 million. Adjusted EBITDA margin of 33% was up versus 29%. Diluted earnings per share of $0.25 were up 19% versus $0.21, while adjusted diluted earnings per share of $0.28 were up 5% versus $0.26.
“ICL delivered record sales of more than $10 billion and EBITDA of more than $4 billion for 2022, and this amount exceeded our guidance, which we raised each quarter. As expected, we saw a return to more traditional seasonality, in the fourth quarter. Throughout the year, we navigated global uncertainty, supply chain challenges and cost inflation, while simultaneously focusing on operating efficiency and productivity, introducing new innovative products, and delivering value to all of our stakeholders,” said Raviv Zoller, president and CEO of ICL. “In 2023, we will remain focused on executing against our five-year plan leveraging new opportunities in our specialties businesses, with consistent cost discipline, and resolve to deliver innovative and sustainable solutions to our customers around the world.”
ICL full year 2023, adjusted EBITDA is expected to be within a range of $2.2 billion to $2.4 billion, with approximately $1.1 billion of this amount estimated to come from the Company’s specialties focused businesses. (1a)
Financial Figures and non-GAAP Financial Measures
|
|
10-12/2022 |
|
10-12/2021 |
|
1-12/2022 |
|
1-12/2021 |
|||||||||
|
|
$ millions |
|
% of sales |
|
$ millions |
|
% of sales |
|
$ millions |
|
% of sales |
|
$ millions |
|
% of sales |
|
|
Sales |
2,091 |
– |
2,038 |
– |
10,015 |
– |
6,955 |
– |
||||||||
|
Gross profit |
933 |
45 |
857 |
42 |
5,032 |
50 |
2,611 |
38 |
||||||||
|
Operating income |
540 |
26 |
461 |
23 |
3,516 |
35 |
1,210 |
17 |
||||||||
|
Adjusted operating income (1) |
562 |
27 |
458 |
22 |
3,509 |
35 |
1,194 |
17 |
||||||||
|
Net income attributable to the shareholders of the Company |
331 |
16 |
283 |
14 |
2,159 |
22 |
783 |
11 |
||||||||
|
Adjusted net income – shareholders of the Company (1) |
358 |
17 |
339 |
17 |
2,350 |
23 |
824 |
12 |
||||||||
|
Diluted earnings per share (in dollars) |
0.25 |
– |
0.21 |
– |
1.67 |
– |
0.60 |
– |
||||||||
|
Diluted adjusted earnings per share (in dollars) (2) |
0.28 |
– |
0.26 |
– |
1.82 |
– |
0.64 |
– |
||||||||
|
Adjusted EBITDA (2) |
698 |
33 |
587 |
29 |
4,007 |
40 |
1,687 |
24 |
||||||||
|
Cash flows from operating activities |
467 |
– |
344 |
– |
2,025 |
– |
1,065 |
– |
||||||||
|
Purchases of property, plant and equipment and intangible assets (3) |
212 |
– |
185 |
– |
747 |
– |
611 |
– |
||||||||
|
(1) |
See “Adjustments to Reported Operating and Net income (non-GAAP)” below. |
|
|
(2) |
See “Consolidated Adjusted EBITDA and Diluted Adjusted Earnings Per Share for the periods of activity” below. |
|
|
(3) |
See “Condensed consolidated statements of cash flows (unaudited)” to the accompanying financial statements. |
|
|
Industrial Products |
|
Potash |
|
Phosphate |
|
Growing |
|||||||||
|
|
Three-months ended 31 December |
|||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
Segment operating income |
95 |
111 |
340 |
244 |
116 |
87 |
32 |
42 |
||||||||
|
Depreciation and amortization |
15 |
18 |
45 |
40 |
49 |
46 |
24 |
21 |
||||||||
|
Segment EBITDA |
110 |
129 |
385 |
284 |
165 |
133 |
56 |
63 |
||||||||
Segment Information
Industrial Products
The Industrial Products segment produces bromine from a highly concentrated solution in the Dead Sea and bromine‑based compounds at its facilities in Israel, the Netherlands and China. In addition, the segment produces salts, magnesium chloride, magnesia-based products, phosphorus-based, products and functional fluids.
Results of operations
|
|
10-12/2022 |
10-12/2021 |
1-12/2022 |
1-12/2021 |
||||
|
|
$ millions |
$ millions |
$ millions |
$ millions |
||||
|
Segment Sales |
349 |
422 |
1,766 |
1,617 |
||||
|
Sales to external customers |
343 |
418 |
1,737 |
1,601 |
||||
|
Sales to internal customers |
6 |
4 |
29 |
16 |
||||
|
Segment Operating Income |
95 |
111 |
628 |
435 |
||||
|
Depreciation and amortization |
15 |
18 |
61 |
65 |
||||
|
Segment EBITDA |
110 |
129 |
689 |
500 |
||||
|
Capital expenditures |
27 |
25 |
90 |
74 |
Significant highlights
- Record annual sales and operating income of $1,766 million and $628 million were up 9% and 44% year-over-year, respectively.
- Bromine-based flame retardants: For 2022, sales increased year-over-year, with higher prices offsetting lower quantities. Electronics end-market demand softened as the year progressed, reflecting weaker consumer spending – a trend that is expected to continue into the beginning of 2023.
- Elemental bromine: Annual sales declined year-over-year as higher prices did not fully offset lower volumes.
- Phosphorus-based flame retardants: Construction activity was impacted, as both inflation and higher interest rates – mainly in the US and Europe – drove annual sales lower year-over-year on lower volumes, even as prices increased.
- Clear brine fluids: For 2022, sales increased year-over-year on higher prices.
- Specialty minerals: Annual sales were higher than last year with higher selling prices offsetting lower volumes.
- Overall raw material inputs remained elevated throughout most of 2022.
Results analysis for the period October – December 2022
|
|
Sales |
Expenses |
Operating |
|||||||
|
|
$ millions |
|||||||||
|
Q4 2021 figures |
422 |
|
(311 |
) |
111 |
|
||||
|
Quantity |
(128 |
) |
63 |
|
(65 |
) |
||||
|
Price |
64 |
|
– |
|
64 |
|
||||
|
Exchange rates |
(9 |
) |
10 |
|
1 |
|
||||
|
Raw materials |
– |
|
(18 |
) |
(18 |
) |
||||
|
Energy |
– |
|
(5 |
) |
(5 |
) |
||||
|
Transportation |
– |
|
(3 |
) |
(3 |
) |
||||
|
Operating and other expenses |
– |
|
10 |
|
10 |
|
||||
|
Q4 2022 figures |
349 |
|
(254 |
) |
95 |
|
||||
– Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of bromine and phosphorus-based flame retardants, elemental bromine, and specialty minerals, partially offset by an increase in sales volumes of clear brine fluids.
– Price – The positive impact on operating income was mainly due to higher selling prices of bromine-based flame retardants and bromine-based industrial solutions, as well as specialty minerals.
– Exchange rates – The positive impact on operational costs due to the depreciation of the average exchange rate of the Israeli shekel and the euro against the US dollar, was almost entirely offset by the negative impact on sales due to the depreciation of the average exchange rate of the euro against the US dollar.
– Raw materials – The negative impact on operating income resulted from higher costs of raw materials.
– Energy – The negative impact on operating income was due to higher electricity and gas prices.
– Operating and other expenses – The positive impact on operating income was primarily due to lower operational costs.
Potash
The Potash segment produces and sells mainly potash, salts, magnesium, and electricity. Potash is produced in Israel and Spain using an evaporation process to extract potash from the Dead Sea at Sodom Israel and conventional mining from an underground mine in Spain. The segment also includes the production and sale of pure magnesium and magnesium alloys, as well as the production and sale of chlorine. In addition, the segment sells salt products produced at its potash site in Spain. The segment operates a power plant in Sodom which supplies electricity to ICL companies in Israel (surplus electricity is sold to external customers) and steam to all facilities at the Sodom site.
Results of operations
|
|
10-12/2022 |
10-12/2021 |
1-12/2022 |
1-12/2021 |
||||
|
|
$ millions |
$ millions |
$ millions |
$ millions |
||||
|
Segment Sales |
713 |
647 |
3,313 |
1,776 |
||||
|
Potash sales to external customers |
568 |
541 |
2,710 |
1,401 |
||||
|
Potash sales to internal customers |
36 |
18 |
184 |
94 |
||||
|
Other and eliminations (1) |
109 |
88 |
419 |
281 |
||||
|
Gross Profit |
456 |
372 |
2,292 |
870 |
||||
|
Segment Operating Income |
340 |
244 |
1,822 |
399 |
||||
|
Depreciation and amortization |
45 |
40 |
166 |
148 |
||||
|
Segment EBITDA |
385 |
284 |
1,988 |
547 |
||||
|
Capital expenditures |
92 |
85 |
346 |
270 |
||||
|
Potash price – CIF ($ per tonne) |
594 |
520 |
682 |
356 |
|
(1) |
Includes salt produced in Spain, metal magnesium-based products, chlorine, and sales of excess electricity produced by ICL’s power plant at ICL Dead Sea. |
Significant highlights
ICL Dead Sea:
- ICL Dead Sea reached an all-time annual potash production record of 4,011K tonnes in 2022, following continued process improvements. In addition, the site achieved sales and operating income records, which were supported by market conditions.
ICL Iberia:
- Performance improvement projects implemented by ICL Iberia throughout 2022 are expected to result in increased production and to address operational and geological challenges, which negatively impacted production in recent years.
Metal Magnesium:
- Metal magnesium achieved annual sales and operating income records, which were supported by annual contracts securing high prices in a volatile pricing environment.
Additional segment information
Global potash market – average prices and imports:
|
Average prices |
|
10-12.2022 |
10-12.2021 |
VS Q4 2021 |
07-09/2022 |
VS Q3 2022 |
||||||
|
Granular potash – Brazil |
CFR spot ($ per tonne) |
570 |
787 |
(27.6)% |
844 |
(32.5)% |
||||||
|
Granular potash – Northwest Europe |
CIF spot/contract (€ per tonne) |
813 |
543 |
49.7% |
875 |
(7.1)% |
||||||
|
Standard potash – Southeast Asia |
CFR spot ($ per tonne) |
675 |
578 |
16.8% |
873 |
(22.7)% |
||||||
|
Potash imports |
|
|
|
|
|
|
||||||
|
To Brazil |
million tonnes |
1.5 |
3.4 |
(55.9)% |
2.9 |
(48.3)% |
||||||
|
To China |
million tonnes |
1.8 |
1.6 |
12.5% |
2.1 |
(14.3)% |
||||||
|
To India |
million tonnes |
0.5 |
0.5 |
0.0% |
0.6 |
(9.1)% |
|
Sources: CRU (Fertilizer Week Historical Price: January 2023), FAI, Brazilian and Chinese customs data. |
Potash – Production, and Sales
| Thousands of tonnes |
10-12/2022 |
10-12/2021 |
1-12/2022 |
1-12/2021 |
||||
|
Production |
1,224 |
1,188 |
4,691 |
4,514 |
||||
|
Total sales (including internal sales) |
1,068 |
1,147 |
4,499 |
4,434 |
||||
|
Closing inventory |
547 |
355 |
547 |
355 |
Full year 2022
– Production – In 2022, potash production was 177 thousand tonnes higher than the prior year due to ongoing operational improvements at both ICL Dead Sea and ICL Iberia, which include, among others, the connection of the ramp to the Cabanasses mine at ICL Iberia.
– Sales – The quantity of potash sold in 2022 was 65 thousand tonnes higher than the prior year mainly due to higher sales to India, Brazil and Asia, partially offset by lower sales to Europe, and the US.
Fourth quarter 2022
– Production – Production was 36 thousand tonnes higher year-over-year due to operational improvements implemented at ICL Dead Sea and ICL Iberia.
– Sales – The quantity of potash sold was 79 thousand tonnes lower year-over-year, mainly due to lower sales volumes to Brazil and Asia, partially offset by higher sales to India, Europe and the US.
Results analysis for the period October – December 2022
|
|
Sales |
Expenses |
Operating |
|||
|
|
$ millions |
|||||
|
Q4 2021 figures |
647 |
(403) |
244 |
|||
|
Quantity |
(72) |
22 |
(50) |
|||
|
Price |
150 |
– |
150 |
|||
|
Exchange rates |
(12) |
3 |
(9) |
|||
|
Raw materials |
– |
(1) |
(1) |
|||
|
Energy |
– |
4 |
4 |
|||
|
Transportation |
– |
10 |
10 |
|||
|
Operating and other expenses |
– |
(8) |
(8) |
|||
|
Q4 2022 figures |
713 |
(373) |
340 |
|||
– Quantity – The negative impact on operating income was primarily related to decreased potash sales volumes from ICL Dead Sea, partially offset by higher sales volumes from ICL Iberia.
– Price – The positive impact on operating income resulted primarily from an increase of $74 in the price of potash (CIF) per tonne year-over-year.
– Exchange rates – The unfavorable impact on operating income was due to depreciation of the average exchange rate of the euro against the US dollar, which led to a negative impact on sales that was partially offset by a positive impact on operational costs resulting from depreciation of the average exchange rate of the Israeli shekel against the US dollar.
– Transportation – The positive impact on operating income was due to decreased marine transportation costs.
– Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs.
Phosphate Solutions
The Phosphate Solutions segment operates ICL’s phosphate value chain and uses phosphate rock and fertilizer-grade phosphoric acid to produce downstream phosphate-based specialty products, as well as to produce and sell phosphate-based fertilizers.
Sales of phosphate specialties of $403 million and operating income of $66 million in the fourth quarter of 2022 were approximately 8% and 47% higher, respectively, compared to the fourth quarter of 2021. The increase in operating income was driven mainly by higher prices which offset increased raw material costs, as well as higher energy and other production costs. Despite ongoing supply chain challenges, the segment’s global production footprint enabled it to provide reliable supply to its customers worldwide.
Sales of phosphate commodities amounted to $224 million, approximately 14% higher than in the fourth quarter of 2021, due to an increase in quantities sold and higher market prices. Operating income of $50 million, a year-over-year increase of $8 million, was primarily due to higher prices, partially offset by higher costs of raw materials, mainly sulphur.
Results of operations
|
|
10-12/2022 |
10-12/2021 |
1-12/2022 |
1-12/2021 |
||||
|
|
$ millions |
$ millions |
$ millions |
$ millions |
||||
|
Segment Sales |
627 |
571 |
3,106 |
2,254 |
||||
|
Sales to external customers |
574 |
527 |
2,851 |
2,087 |
||||
|
Sales to internal customers |
53 |
44 |
255 |
167 |
||||
|
Segment Operating Income |
116 |
87 |
777 |
294 |
||||
|
Depreciation and amortization* |
49 |
46 |
189 |
207 |
||||
|
Segment EBITDA |
165 |
133 |
966 |
501 |
||||
|
Phosphate specialties EBITDA |
79 |
60 |
436 |
209 |
||||
|
Phosphate commodities EBITDA |
86 |
73 |
530 |
292 |
||||
|
Capital expenditures |
78 |
62 |
259 |
228 |
|
* For Q4 2022, comprised of $13 million in phosphate specialties and $36 million in phosphate commodities. For Q4 2021, $15 million in phosphate specialties and $31 million in phosphate commodities. |
Significant highlights
- In 2022, the specialty phosphates business benefited from higher prices in all regions, while persistent supply-chain challenges negatively impacted raw material and production costs.
- Despite these challenges, and even as major raw material suppliers continued to experience unplanned production downtime, the Company provided reliable supply to customers via its global production and logistics network.
- Phosphate salts: Annual sales increased year-over-year, with both higher prices and volumes. End market demand for food solutions was solid in North and South America but weaker in Europe. For industrial end-markets, demand for commercial applications remained stable, while demand for products related to residential applications subsided, as inflation and interest rates increased.
- White phosphoric acid (WPA): Sales for 2022 increased year-over-year, with higher selling prices – especially in Europe and in North and South America – offsetting lower volumes, through the fourth quarter.
- Energy storage solutions (ESS)
– In October, the Company announced plans to build a $400 million lithium iron phosphate (LFP) cathode active material manufacturing (CAM) plant in St. Louis, which is expected to be the first large-scale LFP material manufacturing facility in the U.S. The plant is expected to be operational by 2024 and will produce high-quality LFP material for the global lithium battery industry, using a primarily domestic supply chain.
– The Company’s YPH joint venture in China continued to experience growing demand for the specialty raw materials used for energy storage solutions.
- Phosphate fertilizers: Annual sales increased on both higher prices and volumes. While prices declined during the fourth quarter, they began to moderate by the end of the year, due to increasing demand – mainly in Latin America and also supported by better affordability and limited supply available from China.
Additional segment information
Global phosphate commodities market – average prices:
|
Average prices |
$ per tonne |
10-12.2022 |
10-12.2021 |
VS Q4 2021 |
07-09/2022 |
VS Q3 2022 |
|||||
|
DAP |
CFR India Bulk Spot |
734 |
809 |
(9)% |
863 |
(15)% |
|||||
|
TSP |
CFR Brazil Bulk Spot |
543 |
677 |
(20)% |
797 |
(32)% |
|||||
|
SSP |
CPT Brazil inland 18-20% P2O5 Bulk Spot |
270 |
395 |
(32)% |
423 |
(36)% |
|||||
|
Sulphur |
Bulk FOB Adnoc monthly Bulk contract |
138 |
226 |
(39)% |
193 |
(28)% |
|||||
|
Source: CRU (Fertilizer Week Historical Prices, January 2023). |
|||||||||||
Results analysis for the period October – December 2022
|
|
Sales |
Expenses |
Operating |
|||
|
|
$ millions |
|||||
|
Q4 2021 figures |
571 |
(484) |
87 |
|||
|
Quantity |
(20) |
(1) |
(21) |
|||
|
Price |
116 |
– |
116 |
|||
|
Exchange rates |
(40) |
39 |
(1) |
|||
|
Raw materials |
– |
(39) |
(39) |
|||
|
Energy |
– |
(8) |
(8) |
|||
|
Transportation |
– |
1 |
1 |
|||
|
Operating and other expenses |
– |
(19) |
(19) |
|||
|
Q4 2022 figures |
627 |
(511) |
116 |
|||
– Quantity – The negative impact on operating income was primarily related to lower sales volumes of white phosphoric acid (WPA), mainly in Europe and South America, as well as lower sales volumes of salts and phosphate-based food additives. This was partially offset by an increase in sales volumes of fertilizers in China.
– Price – The positive impact on operating income was primarily due to higher selling prices of phosphate-based food additives, WPA and salts, in most regions, mainly in Europe. This was partially offset by a decrease in selling prices of fertilizers in America.
– Exchange rates – The negative impact on sales was due to the depreciation of the average exchange rate of the Chinese yuan and the euro against the US dollar, which was almost entirely offset by the positive impact on operational costs.
– Raw materials – The negative impact on operating income was due to higher costs, mainly sulphur, caustic soda and potassium hydroxide (KOH).
– Energy – The negative impact on operating income was due to higher electricity and gas prices, mainly in Europe and North America.
– Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs.
Growing Solutions
The Growing Solutions segment aims to achieve global leadership in plant nutrition markets by enhancing its position in its core markets of specialty agriculture, ornamental horticulture, turf and landscaping, fertilizers and FertilizerpluS, targeting high-growth markets such as Brazil, India, and China. The segment also looks to leverage its unique R&D capabilities, substantial agronomic experience, global footprint, backward integration to potash, phosphate, polysulphate and its chemistry know-how, as well as its ability to integrate and generate synergies from acquired businesses. The segment works continuously to expand its broad portfolio of specialty plant nutrition, plant stimulation and plant health solutions, which consist of enhanced efficiency and controlled release fertilizers (CRF), water-soluble fertilizers (WSF), liquid fertilizers and straights (MKP/MAP/PeKacid), its FertilizerpluS range, soil and foliar micronutrients, secondary nutrients, biostimulants, soil conditioners, seed treatment products, and adjuvants.
In line with the Company’s continued focus on targeting long-term growth through its diversified specialty solutions, in 2022 it changed its managerial structure so that the activities of ICL Boulby and other European business components were transferred from the Potash and Phosphate Solutions segments, respectively, to the Growing Solutions segment. Accordingly, the Company restated comparative figures to reflect the structural change of the reporting segments.
Results of operations
|
|
10-12/2022 |
10-12/2021 |
1-12/2022 |
1-12/2021 |
||||
|
|
$ millions |
$ millions |
$ millions |
$ millions |
||||
|
Segment Sales |
527 |
492 |
2,422 |
1,670 |
||||
|
Sales to external customers |
513 |
481 |
2,376 |
1,644 |
||||
|
Sales to internal customers |
14 |
11 |
46 |
26 |
||||
|
Segment Operating Income |
32 |
42 |
378 |
135 |
||||
|
Depreciation and amortization |
24 |
21 |
70 |
62 |
||||
|
Segment EBITDA |
56 |
63 |
448 |
197 |
||||
|
Capital expenditures |
38 |
38 |
101 |
74 |
Significant highlights
- Specialty fertilizers: Annual sales increased year-over-year, as higher prices for straights, liquid NPKs, water-soluble NPKs and controlled-release fertilizers offset lower volumes.
- Turf and Ornamental (T&O): Annual sales increased year-over-year with both higher prices and higher volumes, as the turf market remained stable. In the fourth quarter, the ornamental end-market was impacted by inflation – for both growers and consumers – and this uncertainty component is expected to continue into the beginning of 2023.
- Brazil: Sales for 2022 reflect strong demand in the first half of the year due to supply concerns related to the Ukraine-Russia conflict, which abated in the second half, resulting in lower prices for the fourth quarter.
- Polysulphate-based products: Annual sales of FertilizerpluS products increased year-over-year due to higher selling prices.
- ICL Boulby: Annual production of polysulphate increased by 21% to 953 thousand tonnes.
Results analysis for the period October – December 2022
|
|
Sales |
Expenses |
Operating |
|||
|
|
$ millions |
|||||
|
Q4 2021 figures |
492 |
(450) |
42 |
|||
|
Quantity |
(74) |
60 |
(14) |
|||
|
Price |
126 |
– |
126 |
|||
|
Exchange rates |
(17) |
15 |
(2) |
|||
|
Raw materials |
– |
(108) |
(108) |
|||
|
Energy |
– |
(1) |
(1) |
|||
|
Transportation |
– |
(14) |
(14) |
|||
|
Operating and other expenses |
– |
3 |
3 |
|||
|
Q4 2022 figures |
527 |
(495) |
32 |
|||
– Quantity – The negative impact on operating income was due to lower sales volumes of specialty agriculture and FertilizerpluS products.
– Price – The positive impact on operating income was due to higher selling prices across most business lines, primarily specialty agriculture and FertilizerpluS products.
– Exchange rates – The negative impact on sales was due to depreciation of the average exchange rate of the euro against the US dollar, which was almost entirely offset by the positive impact on operational costs due to depreciation of the average exchange rate of the euro and the British pound against the US dollar.
– Raw materials – The negative impact on operating income was primarily due to higher costs of commodity fertilizers, potassium hydroxide (KOH) and urea.
– Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs.
Financing expenses, net
Net financing expenses in the fourth quarter of 2022 amounted to $41 million, compared to $38 million in the corresponding quarter last year, an increase of $3 million.
Tax expenses
In 2022, the Company’s reported tax expenses were $1,185 million, which include prior years’ expenses following a settlement agreement with the Israeli Tax Authority regarding the surplus profit levy, compared to $260 million in 2021. The Company’s adjusted tax expenses for 2022 amounted to $987 million, excluding the said prior years expenses, compared to $203 million in 2021, reflecting an effective tax rate of 29% and 19%, respectively.
The Company’s higher effective tax rate for 2022 was mainly due to the surplus profit levy. The Company’s relatively low effective tax rate for the prior year resulted primarily from higher profit deriving from tax jurisdictions with lower effective tax rates.
Liquidity and Capital Resources
As of December 31, 2022, the Company’s cash, cash equivalents, short-term investments and deposits amounted to $508 million compared to $564 million as of December 31, 2021. In addition, the Company maintained $748 million of unused credit facilities as of December 31, 2022.
Outstanding net debt
As of December 31, 2022, ICL’s net financial liabilities amounted to $2,316 million, a decrease of $133 million compared to December 31, 2021.
Contacts
Investor and Press Contact – Global
Peggy Reilly Tharp
VP, Global Investor Relations
+1-314-983-7665
[email protected]
Investor and Press Contact – Israel
Adi Bajayo
ICL Spokesperson
+972-3-6844459
[email protected]
