Expanded India contracts to lift 12-month ICL revenues by $100 million
ICL Fertilizers customers boosted order to 1.1 million tons of potash by May 2008
Expanded contracts that Israel Chemicals (TASE: CHIM) has signed to supply potash to India should increase the company's revenues by about $100 million.
The company entered the agreements via subsidiary ICL Fertilizers.
The Indian customers are not new ones, but steady clients that increased their combined potash orders from 900,000 tons to 1.1 million tons, including optional amounts, for supply by May 2008.
Moreover, ICL achieved a significant increase in price, by $50 per ton. The shipments should therefore generate about $300 million in revenue, instead of $200 million.
From the year's start, ICL shares have risen by 39%, significantly outperforming the benchmark TA-25 index, which has risen 21% in that time.
ICL's sales of fertilizers and phosphates increased by 3.7% year over year in 2006, to $569 million. Operating income from this segment increased by 5% to $16 million.