Israel Corp. Reports Results for Second Quarter of 2021

Rhea-AI Summary

Israel Corporation Ltd. reported its second quarter 2021 results, showing a net profit of $66 million to shareholders, a significant recovery from the net loss of $101 million in the same quarter of 2020. The company's share in ICL profit rose to $64 million from a loss of $76 million, and Bazan's profit share increased to $23 million from a loss of $4 million. As of June 30, 2021, IC had total financial liabilities of $1,657 million but maintained liquid assets of $611 million, resulting in a net debt of $1,014 million. The company plans to invest $350-500 million across various sectors in the coming years.

Positive

• Net profit increased to $66 million from a loss of $101 million YoY.
• Share in ICL profit rose to $64 million from a $76 million loss.
• Bazan profit share improved to $23 million from a loss of $4 million.

Negative

• Total financial liabilities at $1,657 million, indicating significant debt levels.
• Net debt remains high at $1,014 million, despite a reduction from $1,022 million.

TEL AVIV, Israel, Aug. 19, 2021 /PRNewswire/ -- Israel Corporation Ltd. (TASE: ILCO) ("IC") announced today its second quarter results for the period ending June 30, 2021.

Selected Financial Figures for the Second Quarter 2021:

$m	Q2/21	Q2/20
IC share in ICL profit (loss)	64	(76)
IC share in Bazan profit (loss)	23	(4)
Amortization of excess cost	(2)	(2)
Financing, G&A and other expenses at IC headquarter level	(19)	(19)
Tax income (expenses) of IC headquarters	-	-
Net Profit (Loss) to company's shareholders	66	(101)

Debt Balances and Liquidity at the IC Headquarters Level^[1]

As of June 30, 2021, total financial liabilities^[1] were $1,657 million, and investments in liquid assets amounted to $611 million of which $8 are pledged deposits.

Net debt^[1] as of June 30, 2021 totaled $1,014 million. The net debt includes the fair value of derivatives transactions, which decrease the economic value of the financial liabilities in the amount of $32 million. As of March 31, 2021, the net debt^[1] was $1,022m.

Additional updates

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	30/06/2021
Assets
ICL (~587m shares, market value[2])	3,982
Bazan (~1,058m shares, market value[2])	273
Total Assets	4,255
IC's Net Debt	1,014
Total Assets, net	3,241

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 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.

^1. Israel Corp and its wholly owned and controlled headquarter companies.
^2. As of June 30, 2021.

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

View original content:https://www.prnewswire.com/news-releases/israel-corp-reports-results-for-second-quarter-of-2021-301359209.html

SOURCE Israel Corporation Ltd.

FAQ

What were the key financial results for Israel Corporation in Q2 2021?

Israel Corporation reported a net profit of $66 million and an improvement in share profits from ICL and Bazan.

How much did Israel Corporation improve its profit compared to Q2 2020?

Net profit improved from a loss of $101 million in Q2 2020 to a profit of $66 million in Q2 2021.

What are the total financial liabilities of Israel Corporation as of June 30, 2021?

Israel Corporation reported total financial liabilities of $1,657 million.

What is the net debt of Israel Corporation as of June 30, 2021?

The company's net debt stood at $1,014 million as of June 30, 2021.

What future investments are planned by Israel Corporation?

Israel Corporation plans to invest between $350 million to $500 million in various sectors over the coming years.