SQM Reports Earnings For The Second Quarter Of 2020
08/19/2020 - 10:12 PM
SANTIAGO, Chile , Aug. 19, 2020 /PRNewswire/ --
Highlights
SQM reported net income for the six months ended June 30, 2020 of US$95.8 million . Earnings per share totaled US$0.36 for the first half of 2020, lower than the US$0.57 reported for the first half of 2019. Revenues for the first half of 2020 were US$850.5 million . Lithium sales volumes during the second quarter 2020 exceeded 12,600 metric tons, almost 50% higher than sales volumes reported in the first quarter of the year. Second quarter iodine prices were stable, and hovered around US$35 per kilogram, while the business line contributed approximately 39% to our overall gross profit during the first half of the year. We began delivery of solar salts, selling over 60,000 metric tons during the second quarter. We remain on track to sell about 150,000 metric tons this year. Plants continued operating without any material impact related to the Covid-19 pandemic. Published our audited Annual Sustainability Report SQM will hold a conference call to discuss these results on Thursday, August 20 , at 12:00pm ET (12:00pm Chile time).
Sociedad Química y Minera de Chile , S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported earnings today for the six months ended June 30, 2020 of US$95.8 million (US$0.36 per share), a decrease from US$150.7 million (US$0.57 per share), representing a 36.4% decrease compared to the earnings reported for the six months ended June 30, 2019 . Gross profit reached US$235.6 million (27.7% of revenues) for the six months ended June 30, 2020 , lower than US$288.0 million (28.8% of revenues) recorded for the six months ended June 30, 2019 . Revenues totaled US$850.5 million for the six months ended June 30, 2020 , representing a decrease of 14.8% compared to US$998.4 million reported for the six months ended June 30, 2019 .
The Company also announced earnings for the second quarter of 2020, reporting net income of US$50.8 million (US$0.19 per share) compared to US$45.0 million (US$0.17 per share) during the first quarter 2020 and US$70.2 million (US$0.27 per share) for the second quarter 2019. Gross profit for the second quarter 2020 reached US$127.8 million ; lower than the US$142.5 million recorded for the second quarter 2019, but higher than the US$107.7 million reported during the first quarter 2020. Revenues totaled US$458.5 million , a decrease of approximately 7.2% compared to the second quarter 2019, when revenues amounted to US$494.1 million and an increase of 16.9% compared to US$392.0 million reported during the first quarter 2020.
SQM's Chief Executive Officer, Ricardo Ramos , stated: "The hard work and commitment of our team, especially in the north of Chile , during these difficult times, has allowed us to report a net income for the second quarter of approximately US$50 million . On top of this, as of today, we have met or exceeded all internal production goals which included record production levels of lithium carbonate.
"Although the downward lithium pricing trend continued during the second quarter, I would like to highlight that lithium sales volumes exceeded 12,600 metric tons, almost 50% higher than sales volumes reported in the first quarter of the year, in line with our goal of selling higher lithium sales volumes this year, when compared with last year, thus increasing our market share. In the iodine market, prices were stable, and hovered around US$35 per kilogram, and the business line contributed approximately 39% to our overall gross profit.
"We have been able to evoke change and promote efficiency resulting from the challenges and opportunities than have arisen amidst the 2020 Covid-19 pandemic. We have a diverse portfolio, a strong balance sheet, high-quality assets and great team. These company attributes will continue to help us successfully manage the turbulent times we are all facing."
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 by:
Ensuring access to the best assets related to our current business lines by expanding our global presence; Actively searching for attractive minerals allowing us diversification opportunities to replicate and expand our existing mining capacities; Strengthening our operational, logistical and commercial excellence process from beginning to end, while looking to be a cost leader; and Maintaining a conservative financial policy which allows us to successfully endure economic cycles that could impact the markets in which we sell. We are a company built and managed by a culture based on excellence, safety, sustainability and integrity. We work every day to expand this culture through the attraction, retention and development of talent as well encouraging an inclusive and diverse work environment ensuring the unique knowledge and innovation needed to sustain our business. We strive for safe and accident-free operations by promoting conduct that favors the physical safety and psychological well-being of everyone who works directly and indirectly with the Company.
We position ourselves as leaders in sustainability and work to create a "green" image through the constant efforts to responsibly manage natural resources, care for the environment, form close and trusting relationships with our neighboring communities and through the creation of value. Within these communities, we support projects and activities with a focus on education, business development, and protection of the environment and historical heritage. We create value for our clients through established commercial models and the production and development of differentiated products that respond to their industry and market specific needs, constantly creating and providing a sustainable improvement in the quality of life. We will continue to create value for all of our stakeholders through responsible management of natural resources, sustainable expansion projects and improvement of our existing operations, with a focus on minimizing our environmental impacts by reducing our carbon, energy and water footprints and working together with our shareholders, employees, customers, suppliers and communities.
For further information, contact:
Gerardo Illanes 56-2-24252022 / gerardo.illanes@sqm.com Kelly O'Brien 56-2-24252074 / kelly.obrien@sqm.com Irina Axenova 56-2-24252280 / irina.axenova@sqm.com
For media inquiries, contact:
Maria Ignacia Lopez / ignacia.lopez@sqm.com Pablo Pisani / pablo.pisani@sqm.com Tamara Rebolledo / tamara.rebolledo@sqm.com (Northern Region)
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 business outlook, future economic performance, anticipated 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. 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, specifically the most recent annual report on Form 20-F, which identifies 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.
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SOURCE Sociedad Quimica y Minera de Chile , S.A. (SQM)
