Company ICL Group (formerly Israel Chemicals) reports the signing of supply agreements potash To its customers in China for the next three years. Today, ICL reported that it has signed a three-year framework agreement for the supply of potash to its customers in the years 2022-2024.
According to the company, the prices for the quantities to be supplied according to the framework agreements will be determined in accordance with the potash prices that will be acceptable at the relevant delivery date in the Chinese market. In addition, as part of the three-year agreements, ICL also signed potash supply contracts for its customers in China during 2022.
According to these contracts, the company will sell 700,000 tons to its customers in China this year at a price of $ 590 per ton, ie a total consideration of $ 413 million. The consideration to ICL is an additional $ 147.5 million.
A few days ago, ICL reported that it ended 2021 with 38% revenue growth to $ 6.955 billion. Shareholder net income jumped to $ 783 million in 2021, compared to just $ 24 million in the 2020 corona year.
The ICL added that potash sector sales jumped 43.5% in 2021 to $ 1.931 billion while potash sector profit jumped last year to $ 399 million, compared to just $ 120 million in 2020. The average derived price per ton of potash in 2021 was $ 337 and reflected an increase of 46.5% compared to the average price in 2020.
In the fourth quarter of 2021 alone, the average derivative price per tonne of potash was $ 487, reflecting a 114% increase over the same quarter in 2020. ICL has enjoyed in the past year a sharp rise in the prices of goods and raw materials around the world, which has also boosted the price levels of its products.
The company noted at the time of publication of the reports that “the effects of recent price increases are expected to continue to affect results in the first half of 2022.” In total, ICL produced about 4.514 million tons of potash during 2021 and sold 4.434 million tons of potash to its customers.