Israel Corp. Reports Results for Fourth Quarter of 2022

Rhea-AI Summary

Israel Corporation Ltd. (TASE: ILCO) reported its financial results for Q4 and the full year 2022, highlighting a net profit from continuing operations of $132 million for Q4, compared to $110 million in Q4 2021. For the full year, net profit to shareholders was $921 million, up from $88 million in 2021. Total assets amounted to $4.204 billion, with net debt reduced to $179 million from $234 million in Q3 2022. The company announced a new dividend policy, allocating 45% of net dividend cash flow received from held companies, starting in 2023. In 2023, IC completed a $9 million investment in Nordic Aqua Partners A/S, a company focused on sustainable aquaculture.

Positive

• Q4 2022 net profit of $132 million, up from $110 million in Q4 2021.
• Full year net profit to shareholders rose to $921 million from $88 million in 2021.
• Net debt decreased to $179 million from $234 million in Q3 2022.
• New dividend policy announced, distributing 45% of net dividend cash flows from held companies starting 2023.
• Investment of $9 million in Nordic Aqua Partners A/S for sustainable aquaculture in China.

Negative

• Decrease in net profit from discontinued operations to $0 in Q4 2022 from $50 million in Q4 2021.
• Financing, G&A, and other expenses at headquarters increased significantly year-over-year.

TEL AVIV, Israel, March 16, 2023 /PRNewswire/ -- Israel Corporation Ltd. (TASE: ILCO) ("IC") announced today its fourth quarter and annual results for the period ending December 31, 2022.

Selected Financial Figures for the fourth Quarter and 2022:

$m	Q4/22	Q4/21	2022	2021
IC share in ICL profit	146	129	958	357
Amortization of excess cost	(1)	(1)	(4)	(4)
Financing, G&A and other expenses at IC headquarter level	(3)	(18)	(67)	(84)
Tax Expenses of IC Headquarters	(10)	-	(16)	-
Net Profit (loss) from continuing activities	132	110	871	269
Net Profit (loss) from discontinued operations[1]	-	50	50	(181)
Net Profit to company's shareholders	132	160	921	88

 

Debt Balances and Liquidity at the IC Headquarters Level[2]

As of December 31, 2022, total financial liabilities¹ were $1,132 million, and investments in liquid assets amounted to $982 million of which $8 are pledged deposits.

Net debt¹ as of December 31, 2022, totaled $179 million. The net debt includes the fair value of derivative transactions, which increases the economic value of the financial liabilities in the amount of $10 million, and the fair value of the Bazan call options³ which increases the economic value of the financial liabilities by $19m. As of September 30, 2022, the net debt¹ was $234m.

Additional updates

In January 2023, IC announced that the Board of Directors approved the adoption of a dividend policy. IC will distribute dividend for each calendar year starting at 2023, amounting to 45% out of the amount received from: the total net dividend cash flow received from its held companies for that calendar year, less an annual amount of $75m (from the amount of said cash flow). The actual dividend distribution will be subject to IC Board approval.

Further to the IC's Reports regarding a transaction for the sale of approximately 9% of the shares of Bazan on November 2021 in which IC granted a call option to each of the purchasers, on February 9, 2023, agreement was reached with the purchasers regarding the exercise of the entirety of the said options, which was implemented on February 13, 2023, for approximately NIS 227m (equivalent to approximately US $64m)

On February 9, IC announced that subject to the completion of the sale of the underlying shares of the said options and the actual receipt of the consideration thereof by IC, the Board of Directors of IC intends to consider adopting a buyback plan for shares of the company during 2023 in a scope of approximately half of the amount of the consideration.

On March 3, 2023, IC completed an investment into Nordic Aqua Partners A/S, which is building an Atlantic Salmon land-based facility in China with AKVA as its technology provider, in an amount of NOK 89m (~$9m).

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	31/12/2022
Assets
ICL (~567m shares, market value[4],[5])	4,101
Bazan (~234m shares, market value[3])	65
Akva Group (market value)	39
Total Assets	4,204
IC's Net Debt	179
Total Assets, net	4,025

 

[1] For more details on the sale of 16.687% of Bazan shares please refer to IC Q3/2022 financial statements and immediate report dated September 15, 2022

[2] Israel Corp and its wholly owned and controlled headquarter companies.

[3] Relating to options granted to qualified investors as part of the November 2021 9% share sale and to options granted to Petrochemical Group as part of the Bazan ~16.7% stake sale in September 2022.

[4] As of December 29, 2022, for ICL and December 30, 2022, for AKVA Group.

[5]Based on the exercise price agreed by the company with the call options purchasers on February 9, 2023.

 

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 over the next few years. IC plans to focus mainly on 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 its investment through active board participations and its operational and managerial expertise.

IC current core holdings include c.44% stake in ICL Group (NYSE:ICL, TASE:ICL) and c.18% stake in AKVA Group (OB:AKVA). IC is publicly traded on the Tel Aviv Stock Exchange under the ticker ILCO and is included in the TA-35 Index.

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.

 

Investor Relations Contact
Idan Hizki
Vice President, Business Development & Investor Relations
Tel: +972 3 684 4500
idanh@israelcorp.com

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SOURCE Israel Corporation Ltd.

FAQ

What are the Q4 2022 financial results for Israel Corporation (IRLCF)?

Israel Corporation reported a net profit of $132 million for Q4 2022, an increase from $110 million in Q4 2021.

How did Israel Corporation's full-year profit compare in 2022 versus 2021?

In 2022, Israel Corporation's net profit to shareholders reached $921 million, up from $88 million in 2021.

What is the new dividend policy announced by Israel Corporation?

Israel Corporation announced a dividend policy starting in 2023, distributing 45% of net dividend cash flows from its held companies.

What was the total asset value for Israel Corporation in 2022?

Israel Corporation's total assets amounted to $4.204 billion as of December 31, 2022.

What investment did Israel Corporation make in early 2023?

In early 2023, Israel Corporation invested $9 million in Nordic Aqua Partners A/S, focusing on sustainable aquaculture.