Highlights
- SQM reported net income for the nine months ended September 30, 2023 of US$1,809.5 million compared to US$2,755.3 million for the same period last year. Earnings per share totaled US$6.33 for the nine months ended September 30, 2023.
- Revenues for the nine months ended September 30, 2023, reached US$6,155.9 million compared to US$7,577.0 million reported for the same period last year.
- SQM received IRMA 75, the highest score to date, for its lithium mining operation in the Salar de Atacama.
- Total contribution to the Chilean treasury amounted to approximately US$2.4 billion for the nine months ended September 30, 2023.
SQM will hold a conference call to discuss these results on Thursday, November 16, at 10:00am ET (12:00pm Chile time).
Participant Dial-In (Toll Free): 1-844-282-4852
Participant International Dial-In: 1-412-317-5626
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=o4InH7e7
SANTIAGO, Chile, Nov. 15, 2023 /PRNewswire/ -- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the nine months ended September 30, 2023, of US$1,809.5 million (US$6.33 per ADR), a decrease of approximately 34.3% from US$2,755.3 million (US$9.65 per ADR) for the nine months ended September 30, 2022.
Gross profit reached US$2,674.3 million (43.4% of revenues) for the nine months ended September 30, 2023, lower than US$4,094.8 million (54.0% of revenues) recorded for the nine months ended September 30, 2022. Revenues totaled US$6,155.9 million for the nine months ended September 30, 2023, representing a decrease of approximately 18.8% compared to US$7,577.0 million reported for the nine months ended September 30, 2022.
The Company also announced earnings for the third quarter of 2023 of US$479.4 million (US$1.68 per share), a decrease of approximately 56.4% compared to US$1,099.9 million (US$3.85 per share) for the third quarter of 2022. Gross profit for the third quarter of 2023 reached US$753.6 million, approximately 53.8% lower than the US$1,632.7 million reported for the third quarter 2022. Revenues totaled US$1,840.3 million for the third quarter of 2023, a decrease of approximately 37.8% compared to US$2,958.3 million for the third quarter of 2022.
SQM's Chief Executive Officer, Ricardo Ramos, stated: "The third quarter 2023 results were impacted by significantly lower average sales prices in lithium and fertilizer business lines, partially offset by higher sales volumes, when compared to the same period last year, and higher iodine sales prices. When compared to the second quarter this year, our third quarter earnings were lower by 17%, mainly due to lower realized lithium prices. We continue to see strong fundamentals behind long-term lithium demand growth, supported by strong EV sales volumes and decarbonization targets across the globe. However, the excess of inventory accumulated across battery and lithium chemical supply chains, particularly in Asia, as well as additional lithium supply, have put pressure on lithium market prices and could continue to have a negative impact on lithium prices in the short-term."
He continued by saying: "As we continue with our expansions in Chile, our lithium carbonate capacity has reached 200,000 metric ton per year, and we expect to complete the expansion to 210,000 metric tons in the beginning of 2024, earlier than anticipated. This will enable us to redirect our attention to lithium production cost, ensuring that we maintain our cost competitive position. In Australia, the first production of spodumene concentrate at Mt. Holland is expected during this quarter, while in China, we have commenced lithium hydroxide production from lithium sulfate."
He finished by saying: "In September this year, our operations in the Salar de Atacama received IRMA 75 from the Initiative for Responsible Mining Assurance (IRMA), making us the first lithium company to reach this level. The on-site audit took place last year, as SQM committed to an independent assessment of its Salar de Atacama operations to provide increased transparency for all stakeholders. The ranking is an additional reinforcement of SQM's commitment to transparency of its operations and to produce the world's most sustainable lithium. We will continue our collaboration with the communities surrounding the Salar de Atacama and to work on further reducing our environmental footprint."
SQM´s total contribution to the Chilean treasury reached close to US$2.4 billion for the first nine months of 2023, including payments related to the public-private alliance with CORFO.
About SQM
SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). SQM develops and produces diverse products for several industries essential for human progress, such as health, nutrition, renewable energy and technology through innovation and technological development. We aim to maintain our leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets.
For further information, contact:
Gerardo Illanes 56-2-24252022 / gerardo.illanes@sqm.com
Irina Axenova 56-2-24252280 / irina.axenova@sqm.com
Isabel Bendeck 56-2-24252074 / isabel.bendeck@sqm.com
For media inquiries, contact:
Maria Ignacia Lopez / ignacia.lopez@sqm.com
Pablo Pisani / pablo.pisani@sqm.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "plan," "believe," "estimate," "expect," "strategy," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make concerning the Company's capital expenditures, financing sources, Sustainable Development Plan, Salar Futuro Plan, business and demand outlook, future economic performance, anticipated sales volumes, profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that reflect the best judgment of SQM management based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements, including our ability to successfully implement the Sustainable Development Plan. Therefore, you should not rely on any of these forward-looking statements. Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, including the most recent annual report on Form 20-F, which identifies other important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise, except as required by law.
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SOURCE Sociedad Quimica y Minera de Chile, S.A. (SQM)
