Sotirios Frantzanas 2023-07-06 23:46:25
ICL Group Ltd. (Tel Aviv, Israel) said it expects to see a negative impact to its 2023 EBITDA guidance of approximately $400 million, due to a lower-than-anticipated potash price. ICL added that a recovery in demand for flame retardants, which was expected in the second half of the year, has not yet begun to materialize. If the recovery is delayed until the end of 2023, it could result in a further reduction of approximately $200 million in EBITDA guidance for the year, the company said.
ICL nonetheless reiterated that it is on track with regard to its five-year plan and does not expect the market developments to have a material impact on the plan’s execution.
The company has also announced an update to its 2022–2024 framework agreement with its potash customers in China and said it has agreed to supply them with an aggregate amount of 800,000 metric tons of potash during 2023, with mutual options for an additional 350,000 metric tons. The price agreed on is $307 per metric ton, which aligns with recent contract settlements, the company said.
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