Israel Chemicals Ltd. (NYSE:ICL) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:30 am ET

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Israel Chemicals Ltd. (NYSE:ICL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the ICL Group Analysts and Investors Conference Call. [Operator instructions] I must advise you the call is being recorded today. [Operator instructions]

I would now like to hand the call over to your first speaker today, Mr. Dudi Musler, Investor Relations Manager. Please go ahead.

Executive
Dudi Musler

Thank you. Hi, everyone. Welcome and thank you for joining us today on our second quarter 2020 conference call. The event is being webcast live on our website at www.icl-group.com. Earlier today, we filed our reports to the securities authorities and the stock exchanges in the US and in Israel. The reports as well as the press release are available on our website. There will be a replay of the webcast available a few hours after the meeting and a transcript will be available shortly after.

The presentation that will be reviewed today was also filed to the securities authorities and is available on our website. Please don't forget to review the disclaimer on Slide number 2. Our comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are not guarantees of future performance.

We will begin with a presentation by our CEO, Mr. Raviv Zoller; followed by Mr. Kobi Altman, our CFO. Following the presentation, we will open the line for the Q&A session.

Raviv, please. Thank you, Dudi, and hello, everyone. Before discussing ICL's highlights for the second quarter, I would like to once again acknowledge ICL's employees globally for their perseverance in light of the challenging conditions brought about by the COVID-19 pandemic that have affected all of us personally and professionally. Due to the efforts of our committed team, we have been able to maintain continuity of our business globally with zero disruptions to our customers, while ensuring the health and safety of our employees. Turning to Slide 3 of our earnings presentation. In the second quarter, we generated positive operating income in each of our segments as well as positive free cash flow amid a very challenging operating and market environment. I'm pleased to report that these results were actually ahead of our internal forecasts. In fact, they were more or less in line with our results in the first quarter when our business was not materially impacted by COVID-19. Our results this quarter were also supported by record first-half potash production at the Dead Sea as output didn't suffer as a result of increased health and safety measures that remain in place today. I will discuss our operating performance in greater detail shortly, but I'd like to briefly discuss how our strategy drives our performance and provide context for some of the actions we took in the second quarter. As we have stated before, ICL is far from a pure-play commodity company with performance tied to commodity and business cycles. While performance within some of our segments can certainly be impacted by