SANTIAGO, Chile, Nov. 17, 2021 /PRNewswire/ --
Highlights
- SQM reported net income for the nine months ended September 30, 2021 of US$263.9 million compared to US$97.5 million for the same period the year
before. Earnings per share totaled US$0.92 for the first nine months of 2021, higher
than the US$0.37 reported for the
first nine months of 2020.
- Revenues for the nine months ended September 30, 2021 were US$1,778.0 million.
- Higher sales volumes and average prices in almost all of our
business lines during the first nine months of 2021 when compared
to the same period last year.
- SQM recently qualified for both the DJSI Chile Index and DJSI
MILA Pacific Alliance Index.
SQM will hold a conference call to discuss these results on
Thursday, November 18, at
10:00am ET (12:00pm Chile
time).
Participant Dial-In
(Toll Free):
|
1-855-238-1018
|
Participant
International Dial-In:
|
1-412-542-4107
|
Webcast:
|
https://services.choruscall.com/links/sqm211118.html
|
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, 2021 of US$263.9 million (US$0.92(2) per ADR), an increase from
US$97.5 million (US$0.37(2) per ADR) for the nine
months ended September 30,
2020(3).
Gross profit(4) reached US$547.3 million (30.8% of revenues) for the nine
months ended September 30, 2021,
higher than US$350.4 million (26.9%
of revenues) recorded for the nine months ended September 30, 2020. Revenues totaled
US$1,778.0 million for the nine
months ended September 30, 2021,
representing an increase of 36.4% compared to US$1,303.4 million reported for the nine months
ended September 30, 2020.
The Company also announced earnings for the third quarter of
2021, reporting net income of US$106.1
million (US$0.37(2)
per ADR) compared to US$1.7 million
(US$0.01(2) per ADR) for
the third quarter of 2020. Gross profit(4) for the third
quarter of 2021 reached US$224.8
million, higher than the US$114.8
million recorded for the third quarter of 2020. Revenues
totaled US$661.6 million, an increase
of approximately 46.1% compared to the third quarter of 2020, when
revenues amounted to US$452.9
million.
SQM's Chief Executive Officer, Ricardo
Ramos, stated: "We reported a significantly higher net
income for the nine months ended September
30, 2021 when compared to the similar period of 2020. These
results were primary driven by much higher sales volumes in
lithium, iodine, specialty plant nutrition and potassium business
lines as well as higher realized prices in all our business
lines".
He continued by saying, "The expansion of our lithium operations
is yielding positive results, letting us increase our sales volumes
more than 80% when compared to last year. We are already producing
at rate higher than 120,000 metric tons per year, while we continue
working to reach 180,000 metric tons capacity next year. We are
confident that our sales volumes could reach close to 100,000
metric tons this year, on a market that we estimate will grow close
to 50%. This market growth is putting pressure on prices, as a
result, we forecast average prices to be close to 50% higher in the
fourth quarter this year when compared to prices reported in the
third quarter 2021".
"In the iodine market, the rapid post-Covid recovery is being
reflected in a 25% increase in our sales volumes in the first three
quarters of 2021 compared to the same period last year. This strong
demand growth should have a positive impact on prices going forward
since supply is not keeping up."
The CEO continued by saying, "Given the existing shortage of
potash and potassium-based fertilizers, we have seen a significant
increase of global potassium prices, letting us report an over 65%
increase of our average price in potassium business line during the
third quarter of 2021 when compared to the same period last year.
This positive trend should continue during the fourth quarter, with
prices of potassium-based fertilizers growing at a rate higher than
earlier anticipated".
The CEO closed by saying, "The positive trends we are seeing in
each of the markets in which we participate, along with the
expiration of the legacy lithium contracts, are leading us to reach
record-level results in the fourth quarter of this year".
Sustainable Development
We continue with the implementation of our Sustainable
development plan, focusing on reducing our emissions, water and
brine usage, strengthen our relationships with communities and
contributing to the regional development. For the second year, we
were qualified for DJSI Chile Index and DJSI MILA Pacific Alliance
Index.
During the third quarter we submitted our first disclosure
report under Climate Disclosure Project (CDP) Climate change
guidance and completed self-evaluation process under The Initiative
for Responsible Mining Assurance (IRMA). We are also extremely
pleased with the successful placement of our first green bond of
US$700 million which proceeds will be
used to finance lithium capacity expansion projects that contribute
to the low-carbon transition through clean transportation and
energy storage solutions.
Recently we joined the Race to Zero initiative which focuses on
the immediate actions to reduce global emissions by 2030. Race to
Zero is an initiative from the United Nations Framework Convention
on Climate Change (UNFCCC). It is an external validation of SQM's
sustainable development plan to become carbon neutral in lithium,
iodine, and potassium chloride products. Race to Zero is based on 4
meta-criteria: Pledge, Plan, Proceed and Publish. This implies the
use of science-based targets and ties in with our ongoing work with
the CDP to limit global warming to 1.5°C.
As part of Race to Zero initiative and our aim to reduce our
logistics carbon footprint, we have introduced Chile´s first high
tonnage electric truck which will be operating on the route between
Coya Sur and Tocopilla. If this
project is successful, we expect to continue replacing diesel power
trucks by electric ones in our operations.
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
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
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, 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)