The Israel Company, which is controlled by Idan Ofer, is taking advantage of the sharp rise in the shares of fertilizer giant ICL (formerly ICL) and sold a significant share of its holding in the company during trading in New York on Tuesday.
The Israel Company reported in a report to the stock exchange that due to high demand from global and Israeli investors, it sold about 1.6% of ACC’s capital at a price of NIS 36 per share for a total consideration of NIS 726 million (about $ 220 million).
The distribution was made at a discount of about 6.4% on the price on the Tel Aviv Stock Exchange after trading on Tuesday. Alongside Bank of America and Citigroup.
Following the completion of the transaction, the company left Israel with 44.1% of ICC’s capital, worth approximately NIS 22 billion. This is after ICC’s share has doubled in value in Tel Aviv in the past year and since the beginning of July 2020 its value has quadrupled 4 times. NIS 46 billion, second only to Bank Leumi on the Tel Aviv Stock Exchange.
Estimates that the price of potash will continue to climb
ECL has benefited in the past year mainly from the rise in commodity prices including potash and other fertilizers it produces (mainly phosphate, bromine and products that rely on them). Last month, a company reported 38% growth in revenue for 2021, which last year totaled $ 7 billion. Shareholder net income jumped to $ 783 million, compared to just $ 24 million in 2020.
The company closed the fourth quarter last year with a net profit for shareholders of $ 283 million, compared to only $ 65 million in the corresponding quarter in 2020. The company’s revenues increased in the fourth quarter by 55% compared to the corresponding quarter and amounted to $ 2.03 billion. The quarter’s results also show that gross profit jumped 112% to $ 857 million and operating profit grew to $ 461 million, compared to $ 139 million in the fourth quarter of 2020.
Against the background of the current crisis between Russia and Ukraine, some analysts estimate that potash prices will continue to climb, and may approach an all-time high – about $ 1,000 per ton, compared to the current price of about $ 600. Bank of America analysts recently released a review in which they note that the situation in Ukraine and Belarus and Western sanctions on Belarusian company will continue to support rising world potash prices. Belarus is controlled by the Belarussian government, which produces potash, among other things, and provides about 18% of global potash consumption.
“Shark gas production is delayed due to corona”
Another company from Ofer’s Israel Group, Bazan, updated this week that in light of the delay in the supply of natural gas by Energian (scheduled to begin during the second half of 2022) and in light of recent sharp rises in world crude and natural gas prices, gas purchases Naturally, for the period between May 1 this year and the beginning of the supply of gas by Energian, it will be made at a price that is expected to be significantly higher than the price of a mediation agreement signed by Zen with the Tamar drilling partnership. Thus, “a delay in the start date of the natural gas flow from Energian may have a material adverse effect on the Group’s results in 2022.” The Zen share has risen 46% in the past year and the company’s value on the stock exchange reaches NIS 3.7 billion.
The production of natural gas from the Shark Reservoir by Energian was scheduled to begin in late 2021, but the company subsequently updated on a delay, according to which production will begin in mid-2022. .
Energian Has signed a total of 18 gas sales agreements for the supply of 7.2 billion cubic meters (BCM) of natural gas to the Israeli market, which constitute close to 100% of the total volume of the gas reserve in the reservoir.
Last weekend, the foreign fund Thard Point, which held 9.5% of Energian’s shares (traded in London and Tel Aviv), sold all its holdings in the company for about 170 million pounds (225 million dollars). The distribution was made by Barak Capital Underwriting And Bank of America.
Energian is a foreign company engaged in oil and gas exploration around the world and owns the Crocodile and Shark gas reservoirs in Israel. , To a company value of over NIS 8 billion.