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MIRA
INFORM REPORT
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Report No. : |
505641 |
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Report Date : |
28.04.2018 |
IDENTIFICATION DETAILS
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Name : |
DEAD SEA WORKS LTD. |
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Registered Office : |
P.O. Box 75 (8410001), 1 Menahem Kroitzer
Street, Potash House, Beer Sheva 8489414 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2017 (Consolidated) |
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Date of Incorporation : |
1930 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Producers, manufacturers, exporters and marketers of potash and other
chemicals |
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No. of Employees : |
17000 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company Name And Address
DEAD SEA WORKS LTD.
Telephone 972 8 646 53 51 (Beer Sheva)
972 8 997 75 55
(Sodom)
Fax 972 8 646 55 09
E-mail: info@dead-sea.net;
info@iclfertilizers.com
P.O. Box 75 (8410001)
1 Menahem Kroitzer Street, Potash House
BEER
SHEVA 8489414 ISRAEL
HISTORY & LEGAL FORMATION
Originally
established as a public limited company, registered as such as per file No. 52-001937-3
on the 26.06.1952, continuing activities which began in 1930.
At a later date
subject published a prospectus offering shares to the public.
In 1999 OFER Group
acquired ISRAEL CORP. from Eizenberg family.
In March 2000,
following a successful tender offer for subject’s shares held by the public,
parent ISRAEL CHEMICALS LTD. gained full control of subject (it purchased 10.8%
of subject’s shares from the public, for NIS 584 million), Consequently,
subject’s shares were de-listed from the Tel Aviv Stock Exchange.
On 10.02.2004
converted into a private limited company (keeping same registration number).
SHARE CAPITAL
Authorized share capital NIS 650,000,000.00,
divided into -
649,999,999 ordinary shares (309,093,148
shares issued),
1 special share (issued),
all of NIS 1.00 each,
of which shares
amounting to NIS 309,093,149.00 were issued.
SHAREHOLDERS
Subject is a fully
owned by ISRAEL CHEMICALS LTD. (ICL), a public limited company whose shares are
traded on the Tel Aviv Stock Exchange (TASE) and the New York Stock Exchange
(NYSE:ICL). ICL is controlled (46%) by ISRAEL CORPORATION LTD., also publicly
traded on TASE, controlled (47%) by MILLENIUM INVESTMENTS ELAD LTD., owned (via
owned firms) 90% by Idan Ofer (who also holds 5% in ISRAEL CORP.) and 10% by
Udi Angel.
The State of
Israel holds one single special share in subject (given the fact subject holds
rights on Israel national resource).
In February 2018
POTASH CORPORATION OF SASKATCHEWAN (PCS) realized its 13.8% of ICL (to
institutional bodies) for circa US$ 700 million.
SOLE DIRECTOR
Ofer Lifshitz,
General Manager of subject and Essential Minerals Division.
BUSINESS
Subject is part of
ICL Potash, of the Essential Minerals Division – consisting of potash &
magnesium and phosphates (as of 1.5.2016, following reorganization in ICL
Group). Producers, manufacturers, exporters and marketers of potash and other
chemicals from the Dead Sea, the largest solar evaporation pond array in the
world (3.7 million tons per year). Mineral excavation concession from the State
in the Dead Sea is till 2030. 80% of ICL’s
potash manufacturing capabilities are in subject’s Sodom plant.
Some
95% of sales are for export, mainly to Europe, Brazil, India and China.
Potash is also
extracted via subsidiaries in mines in Spain and U.K.
Among main local
customers: HAIFA CHEMICALS.
Among local
suppliers: BECHOR IMPORT, M.T.R INDS., HAL-DOR, YAMATON, ADRES STEELS, MER
TERRE MARITIME, DORMEX, ELKAYAM METAL INDS., NIR FLOORING, LYA CO., AFIC PRINTING PROD., POLAK BROS. IMPORT AGENCIES, B.F. IMPORT &
GENERAL TRADE, ATEKA, VULCAN FOUNDRIES, ITZHAK SHINITZKY, PELSHAR MATERIAL HANDLING, U.M.I, A.M. MAINTENANCE, GOLD BAR, GETTER GROUP,
S.A.C.F. ENGINEERING, MODCHEM, HABONIM CAST PROD., ORAD CONTROL SYSTEMS, SUPERGUM INDS., DELEK INDUSTRIES, AFCON, FINKELSTEIN
CASTINGS, ELTRON, PETRUS TECHNICAL SUPPLY, PURE CHEMICALS,
TIMCOM TECH., A.D. SINUN, MARLOV, etc.
Operating from
premises, owned by the Group on leased land, plants on area of 1,217 thousand
sq. meters, near the Dead Sea (Sodom) and offices in Potash House, 1 Menahem
Kroitzer Street, Beer Sheva.
Also operating
from large potash plants in Spain and the UK.
ICL headquarters are situated in 23 Osvaldo Aranya Street, Millenium
Tower, Tel Aviv.
In addition,
operating from offices of subsidiaries and affiliated worldwide.
Having some 1,700
employees. Having some 13,000 employees serving ICL Group (of which over 4,700
in Israel, as of 2016), of which some 7,000 employees in the Essential Minerals
Div.
MEANS
Financial data is
included in the consolidated B/S of parent company, ISRAEL
CHEMICALS LTD.,
which shows:
US$ (millions)
ASSETS 31.12.2016 31.12.2017
Current assets:
Cash and cash equivalents 87 83
Investments and short term
deposits 29 90
Trade receivables 966 932
Inventories 1,267 1,226
Other receivables 222 394
2,571 2,725
Non-current assets:
Investments and other
non-current assets 848 746
Property, plant &
equipment 4,309 4,521
Intangible assets 824 722
5,981
5,989
8,552 8,714
====== ======
LIABILITIES
Current liabilities 2,023 2,328
Non-current liabilities 3,870 3,456
Equity 2,659 2,930
8,552 8,714
====== ======
ICL’s current
market value US$ 5,670.6 million.
In
2013 ICL raised US$ 275 million in private placemenst of bonds.
In
September 2014 ICL published a prospectus to the SEC, listing its shares on the
NYSE, raising US$ 550 million, and further US$ 800 million raised in a private
placement to institutional investors in December 2014.
In
November 2017 Maalot S&P Global Rating ratified ICL's local rating at ilAA
with Stable Outlook, and ICL’s international corporate credit rating at BBB-
with a stable outlook, ratified by FITCH in March 2018.
Subject is an
“Approved Enterprise”, and as such enjoys State benefits and tax incentives. In
2000, the Israel Investment Center (IIC) approved investment plans of subject
and sister company DEAD SEA BROMINE, in sum of US$ 140 million. In 2003, IIC
approved a further US$ 14 million investment plan in the expansion of subject's
plant.
According to the financial statements of
parent ICL, as of 31.12.2014 (last published) total assets attributed to the
Potash segment (practically subject and subsidiaries) totaled US$ 2,951.4
million; Total liabilities US$ 566.1 million.
There
are 2 charges (placed in 2010 and September 2015) for unlimited amounts
registered on the company's assets, in favor of CRYSTAL PURCHASING LTD.
REVENUES
Subject pays
royalties to the State of Israel as part of the rights given for mineral
production from the Dead Sea (see more CHARACTER).
Sales
of potash (ICL-Potash), produced in Israel, UK (CLEAVLAND POTASH), Spain (IBER POTASH) (external
–mostly- and internal customers sales):
2014
sales were US$ 1,816 million, operating income of US$ 536.5 million.
2015
sales were US$ 1,450 million, making an operating income of US$ 645 million. The decrease in revenues in the period stems chiefly
from the impact of the strike in subject which brought a decrease of US$ 315
million in revenues.
2016
sales were US$ 1,285 million, making a gross profit of US$ 513 million and an operating income of US$ 291 million. Decrease in sales
stemmed mainly from decrease in potash prices.
2017 sales were
US$ 1,330 million, making a gross profit of US$ 555 million and an operating income of US$ 303 million.
ISRAEL
CHEMICALS LTD.
Consolidated
Statement of Income
US$
(millions)
Year
ended 31.12
2015 2016 2017
Sales 5,405 5,363 5,418
Gross profit 1,803 1,660 1,672
Operating income
(loss) 765 (3) 629
Income (loss) before
income taxes 668 (117) 505
Net income (loss) 506 (172) 347
====== ====== ======
The loss in 2016
was due to large write-offs related to the termination of certain projects. 54%
of 2016 revenues derived from production activities outside Israel.
ICL returned to
profitability in 2017 due to streamlining and rise in potash prices.
ICL Essential
Minerals Segment 2017 sales were US$ 3,008 million.
OTHER COMPANIES
Subject’s owned
subsidiaries (main ones, among others):
ASHLEY CHEMICALS
(HOLLAND) B.V.,
CLEAVLAND POTASH
LIMITED (CPL), UK, holds, in UK: ICL IBERIA LTD., EVERRIS LTD, AMEGA SCIENCES
HOLDING LTD, AMEGA SCIENCES PLC, NUTRIET SIENCES LTD, and in Spain: ICL IBERIA
SCS, IBER POTASH S.A., TRAFICO D MARCINANCE S.A., ABSIA SL, FUENTES
FERTILIZANTES SL.
DEAD SEA MAGNESIUM LTD. (DSM), producers of
magnesium extracted from the Dead Sea, manufacturers, exporters, marketers of
magnesium related products.
ISRAEL CHEMICALS
LTD. (ICL), parent holding company. Main subsidiaries (100%, unless otherwise
stated):
ROTEM AMFERT NEGEV
LTD., producers, exporters and marketers of a
varitey of products based on phosphate rock mined in the Negev Desert,
including phosphate fertilizers, phosphoric acid and specialty fertilizers
DEAD SEA BROMINE
COMPANY LTD. (DSBG)
BROMINE COMPOUNDS
LTD. (BC), manufacturers and marketers of bromine compounds and other
industrial chemicals based on the Dead Sea minerals BROMINE COMPOUNDS MARKETING
(2002) LTD., marketing arm of a/m
TETRABROM
TECHNOLOGIES LTD., fire-retardants
manufacturers,
FERTILIZERS AND
CHEMICALS LTD., manufacturers, importers and marketers of fertilizers and
chemicals, mainly for the agriculture sector
MIFALEI TOVALA
LTD., land transportation, bulk
transportation
ASHLEY CHEMICALS
(HOLLAND) B.V.
ICL EUROPE
COOPERATIEF U.A., the Netherlands
ICL-IP EUROPE
B.V., the Netherlands
ICL IP TERNEUZEN
B.V., the Netherlands
ICL FERTILIZERS
EUROPE C.V., the Netherlands
ICL FINANCE B.V.,
the Netherlands
EVERRIS
INTERNATIONAL B.V., the Netherlands
CLEARON CORP., USA
PHOSPHORUS
DERIVATIVES INC, USA
ICL PERFORMANCE
PROD
ICL-IP AMERICA
INC., USA
EVERRIS N.A. INC,
USA
B.K. GIULINI GmbH,
Germany
ICL HOLDING
GERMANY GMBH, Germany
ICL IP BITTERFELD
GMBH, Germany
PROLACTAL GMBH,
Germany
ICLEAVLAND POTASH
LTD. (CPL), UK
ICL BRASIL, LTDA,
Brazil
ICL (SHANGHAI)
INVESTMENT CO. LTD, China
ICL FRANCE S.A.S,
France
YUNNAN PHOSPHATE
HAIKOU CO. LTD., 50%, China
ICL ASIA LTD.,
Hong Kong
ALLANA POTASH AFAR
PLC, Ethiopia.
Other smaller
Israeli subsidiaries:
IMI TAMI INSTITUTE
FOR RESEARCH & DEVELOPMENT LTD.
CHEMADA FINE
CHEMICALS LTD., 26%
DEAD SEA PRICLASE
FUSED PROD
NEGEV STAR LTD.
EDOM MINERALS
& DEVELOPMENT LTD.
ISRAEL CORP. LTD.
(IC), a holding company, current market value US$ 1,464 million. Its main
holding, besides ICL, is 37.1% in OIL REFINERIES LTD., oil refiners, also publicly traded on
TASE, current market value US$ 1,444 million.
KENON HOLDINGS
LTD., controlled (58%) by Idan Ofer,
publicly traded on NYSE and via TASE, a holding company, current market value
US$ 857 million.
BANKERS
Bank Leumi
Le’Israel Ltd., Beer Sheva Business Branch (No. 607), Beer Sheva.
Bank Hapoalim
Ltd., Beer Sheva Business Branch (No. 177), Beer Sheva.
Above are main
branches (90% of activities), also working with:
Mizrahi Tefahot
Bank Ltd., Beer Sheva Business Center Branch (No. 426), Beer Sheva, account No.
53596 (a check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m account).
Israel Discount
Bank Ltd., Lev Ha'ir Beer Sheva Branch (No. 517), Beer Sheva.
The First
International Bank of Israel Ltd., Main Branch (No. 46), Tel Aviv.
CHARACTER AND REPUTATION
On 21.09.14 a
motion for approval as class action lawsuit was filed against subject to the
District Court on NIS 96.4 million, claiming of abusing monopoly position in
the supply of potash to the local market, setting too high prices.
On 01.02.17 the
Court approve a settlement, in which subject will pay the plaintiff group total
of US$ 5.5 million compensation and framework for future price defined.
Subject was
declared monopoly in Israel for part of its products. ICL and the State are
negotiating the terms of extending ICL's excavation rights in The Dead Sea.
On that background, a fierce dispute erupted in 2009 between HAIFA
CHEMICALS LTD (HCL), manufacturers of KNO3, and ICL – via subject, a main HCL
supplier of potash. The dispute went to arbitration, and in March 2014 the
arbitrator issued its verdict, in principle accepting HCL's claims, setting an
annual quantity of potash subject is compelled to sell HCL in a lower price,
until 2030 (end of ICL's concession for potash from the Dead Sea). A nominated
CPA calculated the compensation of ICL, saying ICL overcharged HCL in total sum
of US$ 48 million in 2009-2013. Consequently, in June 2016 HCL also filed a
claim in the Tel Aviv District Court against subject, for the overcharge of NIS
185 million (converted from the said $ amount). In that aspect, ICL reported that it now considering erecting its own KNO3 plant
(investment of US$ 150 million) which will directly compete with HCL, on a
global market which is valued at US$ 1 billion per annum. In November 2016, the
arbitrator made its final ruling, which exempts ICL from any compensation to
HCL, but his verdict from 2014 on the future sale terms remains.
Apart from the
above (and pollution violations claims, so far not appear significant), nothing
unfavorable learned in the legal aspect (see more below on the business
aspects).
A major issue
concerns the rise in the Dead Sea water level (due to collecting salt from the
Sea's ground near the plants area), which threatens to flood the touristic
hotels area nearby. After negotiations with the Government, it was decided that
ICL will finance 80% of the works in a project (salt harvesting project),
designed to solve the problem, with estimated cost of over NIS 7 billion.
Subject begun the construction of a new pumping station at the Dead Sea
scheduled to be carried out until 2020, with an investment of US$250 million.
ICL is ranked as
the world's 6th largest potash manufacturer, with estimated 7%
global market share.
It is also the world's largest producer of PK fertilizers (compound of potash and
phosphate fertilizers) and the world’s leading producer of specialty
phosphates based on purified phosphoric acid. ICL is a
multi-national concern, among the world's leading suppliers of minerals and one
of the largest industrial concerns in Israel. ICL is considered of world leading company
in the bromine market, with estimated production of 38% of the total elementary
bromine production in the world and lead in the bromine-based flame retardant
products market.
In
the recent periods, ICL Group has been facing pressures from various aspects,
including harsh competition and slowdown in global market and drop in prices in
the potash and fertilizers fields, elevation of royaltees on Israeli State
resources, a large expense related to subject's plant, and others. All these,
some detailed below, forced the Group to go through efficiency steps, including
layoffs in its local manpower. That led in the beginning of 2015 to strikes in ICL's
local southern plants, including subject's plants. After sanctions by the workers during 2014, in February 2015
subject's workers went on a full-scale strike in the Sodom facilities, resolved
in May 2015. The damages to ICL due to the strikes caused loss in revenues of
over US$400 million in 1stH 2015, subject being the main casualty.
A major aspect for
the concerns of ICL is the matter of revision in the State calculations of
payments of royalties to the State for excavating and selling minerals
(considered as natural resources). Following public pressure, in late 2010 the
Israeli Parliament voted to cancel ICL Group's special tax benefits (NIS 2.3
billion in 2007-2011). After a long intensive debate, in November 2015 the
government decided to adopt a special committee recommendations for a fixed
royalties of 5% on revenues, plus elevating tax rates on high profits (of over
14%) on selling potash. The State also demanded ICL to compensate the State for
unpaid royalties in years 2000-2009 and interest payments that emanated
thereof, and in November 2016 mediation verdict determined that ICL should pay
interest of US$ 200 million.
In
parallel, ICL has been also facing harsh competition and slowdown in global
market and drop in prices in its main products in the potash and fertilizers
fields.
In view of all the
above, ICL decided to freeze further strategic investments in Israel in volume
of US$ 750 million (and on the other hand invest in overseas operations and
sites), make structural changes and streamlining in the Group's operations and
other divestments. On the other hand, ICL decided on investing in overseas
operations and sites, mainly investments in potash production in Spain and
U.K., potash reserves in Ethiopia, and phosphate reserves in China, both latter
projects which carry high risk. However, ICL decided to terminate the project
in Ethiopia, causing write-off of US$ 202 million in the 3rdQ 2016, as well as
a write-off ICL also made of US$ 282 million due to termination of a large
computerization project (in that regard, IBM is suing tens millions from ICL
for the project cancellation).
OFER Group, which ISRAEL CORP. (IC) is part of, is a veteran holding company, one the
largest and influential groups in the Israeli market, operating worldwide also
in the fields of energy, shipping and other fields. IC made a strategic move in
the 2ndH 2014, designed to boost the value of core businesses and lower its
financial debt, including the sale offer for some 6% of ICL shares (some half
in direct sale in public offering, listing ICL's shares on the NYSE, the rest
in options given, in consideration of over US$ 500 million), and a spin-off
into 2 groups, leaving ICL and ORL in IC, and the other under newly established
KENON HOLDINGS LTD. The move was completed in January 2015 and KENON's shares
listed to trade via NYSE and via TASE. KENON has
holdings in the fields of energy (IC POWER), automobiles (QOROS) and
shipping (ZIM).
Subject is ISO
9001:2000, ISO-18001 and ISO-14001 certified.
In 1998 subject
acquired control of Spain's potash production plants and establishes
IBERPOTASH, for US$ 120 million.
In
2002 ICL FERTILIZERS acquired CLEAVLAND-POTASH, England’s sole potassium
manufacturer, for US$ 45 million.
In 2006 subject
began exporting potash to China, and to India in 2007. During the 2nd
quarter of 2015 ICL signed agreements to supply its customers in China and
India with an aggregate of over 2 million metric tons of potash during 2015. In
January 2016 ICL reported on signing framework agreements with China for supply
potash in volume of 1.1 million tons in 2016 (in July 2016 ICL reported on
signing contracts for supply of 700,000 tons, with options for more supply),
1.14 million tons in 2017 and 1.16 million tons in 2018. Earlier agreement with
India was also signed for 600,000 tons (in value of US$ 136.2 million,
reflecting a 31% decrease in potash price from the previous year).
ICL shipped about
1.3 million tons of potash to Brazil in 2017, marking record annual sales for
this market.
In June 2010 ICL
signed transportation contracts with ISRAEL RAILWAYS for cargo from the Dead
Sea and Negev Desert until
In April 2011, ICL announced that its
subsidiary CPL in the U.K., will receive £15 million grant from the British
government for exploiting huge Polyhalite mine discovered in Teeside, England,
next to the Group's potash mine.
As part of ICL's
current expansion strategy plans (in view of the above said) include the
investments in potash mines in Spain (see below), investing US$ 60 million in a potash mine in the UK; and US$ 1.5 billion in the erection
of a potash mine in Ethiopia. In June 2015 ICL completed the acquisition of
100% of ALLANA POTASH CORP., a Canadian mining company engaged in the
development of potash assets in Ethiopia, whose shares are traded on the
Toronto Stock Exchange, for C$137 million (mostly in cash) for 83.78% of
ALLANA’s outstanding shares that it did not already own. As noted above, ICL
recently decided to back-off the Ethiopian venture, after the local government
failed to provide the necessary infrastructure and regulatory framework needed
for development, thus reaching conclusion that return on investment in the
project does not justify its continuance. In May 2017, ICL filed a claim
against the Ethiopian State for agreement violation related to ICL's
investment.
ICL is also
investing hundred US$ million in phosphate mining and process in China.
In
June 2014 subsidiary in Spain ICL IBERIA signed a non-binding MOU with AkzoNobel,
a major producer of specialty chemicals and a leading global paints and
coatings company, for joint production and marketing of 1.5 million tons per
year of high quality vacuum salt and 50,000 tons of white potash.
ICL Group's plants
started to benefit from the shift of the Group's use in natural gas as energy
source (replacing some of the ISRAEL ELECTRICITY CORP. conventional electricity
power). In December 2017, ICL announced that it entered into a long-term
agreement with ENERGEAN ISRAEL, for the supply of up to 13 BCM of natural gas
at a value of US$2 billion over a period of 15 years beginning in the 2ndH
2020. The agreement is expected to fully meet the ICL’s gas requirements,
including the operation of subject’s new 240mW power stations in Sodom (ICL
reported on investing US$ 320 million in the erection), expected to commence
commercial operation in the 1stQ 2018 (now in test-run).
In November 2015
ICL IBERIA/ IBER POTASH (IBP) and the Government of Catalonia signed a
cooperation agreement, expected to ensure the continuation of ICL IBERIA’s
potash mining activities in the Bages Region of Catalonia, and that will
regulate its entire mining operation, including environmental issues. The
agreement includes the extension of the mining excavation by 30 years till
2065, with ICL investment of US$ 1 billion (half already invested during the
last couple of years) to reach 1.3 million tons of potash p/year, adding 500
new employees.
In March 2017 it
was reported that ICL's Phoenix Project which started in 2011 in projected cost
of € 500 million of uniting 2 potash quarries in Catalonia and expansion of
production capacity, will be completed only by 2020, 4 years after the original
plan, and with budget deviation, so far of € 80 million.
In January 2016
ICL purchased 15% of YTH, China's largest producer of phosphate rock and
phosphate fertilizers, whose shares are traded on Shanghai Stock Exchange, for
US$ 250 million, as part of a joint venture between the two.
In September 2016, Mr. Asher Grinbaum,
long-term senior in ICL who had just retired, was brought as an acting CEO,
upon the immediate retiring of Stefan Borgas.
In March 2018, Raviv Zoller was appointed as the CEO of ICL, though the date
for stepping-in to post has not yet announced.
In March 2018, ICL’s management announced on
a new strategic plan, for maximizing the potash and phosphate production
capabilities, including increasing potash production in Sodom to 4 tons per
year, while reducing costs by 10%-15% within the next 5 years (also thanks to
the new a/m power plant), cut 50% in England’s potash Boulby site workforce and
divert to producing a new potash-based specialty fertilizer in that site. ICL
plans to enter the advanced agricultural solutions with that and other
specialty fertilizers.
SUMMARY
Good
for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.78 |
|
UK Pound |
1 |
INR 92.89 |
|
Euro |
1 |
INR 80.74 |
|
ILS |
1 |
INR 18.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
KET |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.