Adds share reaction in paragraph 2, CEO comments in paragraphs 5 and 9

By Steven Scheer

JERUSALEM, May 13 (Reuters) - Israeli fertiliser and speciality chemicals maker ICL Group ICL.N ICL.TA raised its 2026 core earnings forecast on Wednesday after reporting higher-than-expected first quarter net profit, helped by an increase in potash and phosphate sales.

Shares in the company jumped 7.7% in Tel Aviv trading.

ICL, one of the world's largest potash producers, said it earned 11 cents per diluted share in the quarter excluding one-time items, up from nine cents a year earlier. It was forecast to earn nine cents a share, according to LSEG data.

Sales rose 18% to $2.02 billion.

"Potash prices are better, bromine prices are better, and potash volumes are higher. We produced more, we sold more," said CEO Elad Aharonson.

The company raised its 2026 estimate for adjusted earnings before interest, taxes, depreciation and amortisation to $1.5 billion to $1.7 billion from $1.4 billion to $1.6 billion while maintaining a potash sales volume forecast of 4.5 million to 4.7 million metric tons.

ICL extracts mainly potash and magnesium from the Dead Sea under exclusive rights it has held for five decades.

Its concession ends in 2030 and the government has said it plans to open it to competition. Aharonson said if ICL loses the concession, it would receive $3 billion from the state for its assets.

Aharonson told Reuters that ICL overcame a number of headwinds during the first quarter, including a stronger shekel versus the dollar, higher costs of sulphur and other raw materials and operational challenges in Israel as hundreds of employees were called into reserve duty during the Iran war.

Still, sales are expected to grow at least 15% this year, he said. Sales of potash grew 24% to $503 million in the quarter, with potash prices at $362 per ton - up an annual 21%.

Brazil and Europe are ICL's largest markets. China signed an annual contract for potash at $350 a ton late in 2025 and Aharonson expects a new contract with India in the coming weeks.