Israel Corp. Reports Results for First Quarter of 2021

Rhea-AI Summary

Israel Corporation Ltd. (TASE: ILCO) reported its first quarter 2021 results, showing a significant recovery compared to Q1 2020. The company recorded a net profit of $55 million, up from a loss of $42 million last year. Key contributors included a profit share from ICL of $61 million and Bazan's profit of $18 million, contrasting with a loss of $48 million in the previous year. Financial liabilities stood at $1,493 million, with net debt at $1,022 million. The total assets reached $3,693 million, reflecting a solid financial position despite ongoing pandemic challenges.

Positive

• Net profit increased to $55 million from a loss of $42 million in Q1 2020.
• Profit share from ICL rose significantly to $61 million.
• Bazan's profit improved to $18 million, recovering from a prior loss.

Negative

• Financial liabilities remained high at $1,493 million.
• Net debt increased slightly from $1,016 million at the end of 2020 to $1,022 million.

TEL AVIV, Israel, May 13, 2021 /PRNewswire/ -- Israel Corporation Ltd. (TASE: ILCO) ("IC") announced today its first quarter results for the period ending March 31, 2021.

 

Selected Financial Figures for the First Quarter 2021:
$m	Q1/21	Q1/20
IC share in ICL profit	61	28
IC share in Bazan profit (loss)	18	(48)
Amortization of excess cost	(2)	(2)
Financing, G&A and other expenses at IC headquarter level	(22)	(19)
Tax income (expenses) of IC headquarters	-	(1)
Net Profit (Loss) to company's shareholders	55	(42)

 

Debt Balances and Liquidity at the IC Headquarters Level¹

As of March 31, 2021, total financial liabilities¹ were $1,493 million, and investments in liquid assets amounted to $451 million of which $8 are pledged deposits.

Net debt¹ as of March 31, 2021 totaled $1,022 million. The net debt includes the fair value of derivatives transactions, which decrease the economic value of the financial liabilities in the amount of $20 million. As of December 31, 2020, the net debt¹ was $1,016m.

Additional updates

Following the outbreak of the Corona Virus (COVID-19) in China in December 2019, there has been a decline in economic activity in many regions of the world and in Israel as well.

As a holding company, the financial results of IC are mainly affected by the results of its held companies. For more details see detailed financial report.

 

IC Total Assets, Net
$m	31/3/2021
Assets
ICL (~587m shares, market value2)	3,447
Bazan (~1,058m shares, market value2)	246
Total Assets	3,693
IC's Net Debt	1,022
Total Assets, net	2,671

 

About Israel Corporation

Israel Corporation Ltd. (TASE: ILCO) ("IC") is a reputable public investment company, which owns and invests in high quality companies with established managements and go-to markets.

In November 2019, IC announced its updated strategy, IC plans to expand its portfolio through new investments in total amount of $350m-500m over the next few years. IC plans to focus mainly in the food (inc. tech), agriculture (inc. tech), healthcare and industry 4.0 sectors. For more details please see the following link to IC updated Strategy Presentation.

IC strives to generate return on our investment through active board participations and our operational and managerial expertise.

IC current core holdings include c.46% stake in ICL Group (NYSE: ICL) (TASE: ICL) and a c.33% stake in the Bazan Group (TASE: ORL). IC is publicly traded on the Tel Aviv Stock Exchange under the ticker ILCO.

For further information on IC, see IC's publicly available filings, which can be found on the Tel Aviv Stock Exchange website at http://maya.tase.co.il.

Please also see IC company website http://www.israelcorp.com for additional information.

Convenience Translation

The financial information found in this press release is an English summary based on the original Hebrew financial statements and is solely for the convenience of the reader. The binding version is the original in Hebrew.

Forward Looking Statements

This press release may contain forward-looking statements, which may not materialize and are subject to risks and uncertainties that are not under the control of IC, which may cause actual results to differ materially from those contained in the disclosures.

^1. Israel Corp and its wholly owned and controlled headquarter companies.
^2. As of March 31, 2021.

Investor Relations Contacts:
Idan Hizki
Senior Director, Business Development & Investor Relations
Tel.: +972 3 684 4500
idanh@israelcorp.com

View original content:http://www.prnewswire.com/news-releases/israel-corp-reports-results-for-first-quarter-of-2021-301291167.html

SOURCE Israel Corporation Ltd.

FAQ

What were the net profits for Israel Corporation in Q1 2021?

Israel Corporation reported a net profit of $55 million for Q1 2021.

How much did Israel Corporation earn from its share in ICL in Q1 2021?

The company earned $61 million from its share in ICL's profit.

What is Israel Corporation's net debt as of March 31, 2021?

As of March 31, 2021, Israel Corporation's net debt was $1,022 million.

What were Israel Corporation's total assets as of Q1 2021?

The total assets of Israel Corporation as of Q1 2021 amounted to $3,693 million.

What were the financial liabilities for Israel Corporation in Q1 2021?

The financial liabilities for Israel Corporation were $1,493 million in Q1 2021.