SQM REPORTS EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Rhea-AI Summary

SQM reported a decrease in net income for the first three months of 2023 compared to the same period last year. Revenues increased by approximately 12%. The CEO expects lithium sales volumes to recover and anticipates global lithium demand to grow by at least 20% this year. SQM plans to invest close to $1.2 billion in expanding production capacity.

Positive

• Revenues increased by approximately 12% for the first three months of 2023 compared to the same period last year.
• The CEO expects lithium sales volumes to recover in the upcoming quarters.
• Anticipated global lithium demand growth of at least 20% this year.
• SQM plans to invest close to $1.2 billion in expanding production capacity.

Negative

• Net income decreased for the first three months of 2023 compared to the same period last year.
• Lower lithium sales volumes during the first quarter of the year compared to the same period last year.

Highlights   ·  SQM reported net income(1) for the three months ended March 31, 2023 of US$749.9 million compared to US$796.1 million for the same period the year before. Earnings per share totaled US$2.63 for the first three months ended March 31, 2023.   ·  Revenues for the three months ended March 31, 2023, reached US$2,263.9 million.   SQM will hold a conference call to discuss these results on Thursday, May 18, at 12:00am ET (12:00pm Chile time).

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SANTIAGO, Chile, May 17, 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 three months ended March 31, 2023, of US$749.9 million (US$2.63 per ADR), a decrease from US$796.1 million (US$2.79 per ADR) for the three months ended March 31, 2022.

Gross profit⁽²⁾ reached US$1,065.6 million (47.1% of revenues) for the three months ended March 31, 2023, lower than US$1,164.7 million (57.7% of revenues) recorded for the three months ended March 31, 2022. Revenues totaled US$2,263.9 million for the three months ended March 31, 2023, representing an increase of approximately 12% compared to US$2,019.8 million reported for the three months ended March 31, 2022.

SQM's Chief Executive Officer, Ricardo Ramos, stated: "Our quarterly results were in line with our expectations. We saw record high average prices and high sales volumes in iodine business and saw some sales volumes recovery in potassium business. In the lithium market, as anticipated, advanced purchases in the previous quarter, the change in subsidies in China and the high level of stock across the battery supply chain led to a weaker demand, predominantly in China, in the beginning of the year. As a result, our lithium sales volumes during the first quarter of the year were lower than compared to the same period last year. Based on the recent increase in customer activity, we believe that the destocking period has concluded and anticipate our sales volumes to recover in the upcoming quarters. We expect the global lithium demand growth to reach at least 20% this year and will continue to operate at full capacity, producing high-quality lithium products to meet this growth."

He continued by saying: "I would like to highlight an increase in our iodine sales volumes this year. This achievement is the result of the Company's hard work and significant effort to increase capacity and production volumes, ensuring that our iodine products are available to meet customer demand, especially in the growing contrast media segment. SQM is the only iodine producer which has been able to successfully increase capacity in the last years. Our team has been working tirelessly to achieve this result, and we are excited about the opportunities ahead."   

Mr. Ramos closed by saying: "This year, we continue with our growth plans and expect to invest close to US$1.2 billion in expanding our production capacity in Chile and abroad. The expansions at the Carmen Lithium Plant advance on schedule, while we make progress in preparing the technical documentation for the Salar Futuro project. The lithium hydroxide pant in China should be in production in the upcoming months. We continue with the construction at the Mt. Holland site and can confirm that the project is on track to begin spodumene concentrate production by the end of this year and battery-grade lithium hydroxide in 2025."

The successful public-private alliance with CORFO continues yielding positive results, with SQM´s contribution to the Chilean treasury surpassing US$1 billion for the first three months of 2023. 

 

View original content:https://www.prnewswire.com/news-releases/sqm-reports-earnings-for-the-three-months-ended-march-31-2023-301828115.html

SOURCE Sociedad Quimica y Minera de Chile, S.A. (SQM)

FAQ

What were SQM's earnings for the first three months of 2023?

SQM reported earnings of $749.9 million for the first three months of 2023.

How did revenues perform for SQM in the first quarter of 2023?

Revenues increased by approximately 12% compared to the same period last year.

What does the CEO expect for lithium sales volumes?

The CEO expects sales volumes to recover in the upcoming quarters.

What is the anticipated global lithium demand growth?

The CEO anticipates global lithium demand to grow by at least 20% this year.

How much does SQM plan to invest in expanding production capacity?

SQM plans to invest close to $1.2 billion in expanding production capacity.