The Ticker: Zim Seeks Delay in Bond Payments

Check Point’s Q2 revenues up; Mobileye reports steep jump in Q2 revenue; Israel Chemicals signs $150 million deals for potash supply contracts with China.

Bloomberg

Zim seeks delay in bond payments

In a reflection of the ongoing troubles in the container shipping business, Zim Integrated Shipping Services informed holders of its Series Dalet bonds on Monday that it would be seeking to defer payment of $4.5 million of principal on the bonds as part of a wider move to delay $100 million in payments to creditors. The creditors include lessors of ships to Zim as well as banks and shipyards. Zim, in which Kenon Holdings has a 32% stake, has said it does not intend to compensate bondholders for the delay in payment, for example through a hike in interest on the bonds. In 2014, Zim secured a debt rescheduling agreement that included the conversion of $1.4 billion of debt into shares, but since the second half of last year, it has been facing falling container shipping prices, which resulted in a nearly 25% decline in shipping rates in first quarter 2016 compared to the quarter last year. (Yoram Gabison)

Check Point’s Q2 revenues up 

Check Point Software Technologies yesterday reported earnings per share of $1.09 in the second quarter excluding one-time items, up from $0.99 a year earlier and higher than a Thomson Reuters I/B/E/S estimate of $1.07 per share. Second-quarter revenue climbed to $423 million, up 7% from a year earlier. The Tel Aviv-based information security technology company also reported deferred revenue in the second quarter grew 14% to $892 million. Check Point’s GAAP net income was $166 million for the quarter compared to $163 million in the second quarter of 2015. (Reuters and TheMarker)

Mobileye reports steep jump in Q2 revenue 

Mobileye, the Jerusalem-based driving safety and self-driving car technology company reported yesterday that its total revenue for the second quarter of 2016 was $83.5 million, compared to $52.8 million for the quarter last year in the prior-year period. But its shares tanked yesterday on news that its relationship with Tesla Motors would be more limited than expected. (See separate story on this page). Mobileye’s GAAP net profits for the second quarter of 2016 were $26.9 million, or $0.11 per diluted share. This compares to GAAP net profits of $15.3 million, or $0.06 per diluted share, for the second quarter of 2015. Last month, Mobileye earned the ranking as one of the world’s six smartest companies by MIT Magazine, beating out Google, Facebook and Toyota as it bids to develop a driverless car.  (TheMarker)

Israel Chemicals signs $150 million deals for potash supply contracts with China

Israel Chemicals announced yesterday that it has signed several contracts to supply a total of 700,000 metric tons of potash to its customers in China in addition to options for additional quantities. The contracts, which are for delivery this year, are “in line with the recent contract prices in China,” ICL said in a statement. The contracts had been anticipated after Belaruskali, a potash company owned by the government of Belarus, signed its own China supply contract last week at $219 per ton. Based on that price, ICL’s contracts would be worth $153 million, the lowest price in 12 years but still higher than market expectations. ICL shares closed 2.2% at 16.07 shekels ($4.18) in yesterday’s trading in Tel Aviv. (Yoram Gabison)

TASE declines despite bullish mood on overseas markets

Shares on the Tel Aviv Stock Exchange closed generally lower yesterday, bucking the bullish trend on many markets abroad. The benchmark Tel Aviv-25 index fell by 0.2% to 1,461.51 points while the broader Tel Aviv-100 index dropped 0.1% to 1,275.39 points. Trading volume on the day was 800 million shekels ($208 million). The Banks-5 index slumped 1.3% to 1,343.50 points led by shares of Bank Leumi, which lost 2%, closing at 13.81 shekels. The Communications index dropped 1.1% to 995.87 points. By contrast, the Oil and Gas index jumped 0.2% to 1,060.03 and the Biomed index rose by 0.5% to 451.77 points. (Uri Tomer)