SQM REPORTS EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2022

Rhea-AI Summary

SQM Reports Strong Earnings for H1 2022

SQM announced net income of US$1,655.4 million for the first half of 2022, a staggering 940% increase from US$157.8 million in H1 2021. Earnings per share rose to US$5.80 compared to US$0.55 the previous year. Revenue reached US$4,618.6 million, a 314% increase year-over-year. The company highlighted contributions of over US$2.2 billion to public coffers from lithium operations, emphasizing its role in the sustainable energy sector.

Positive

• Net income of US$1,655.4 million for H1 2022, up 940% from US$157.8 million in H1 2021.
• Earnings per share increased to US$5.80 from US$0.55 year-over-year.
• Revenue reached US$4,618.6 million, a 314% rise compared to US$1,116.5 million in H1 2021.

Negative

• None.

Highlights

• SQM will hold a hybrid Investor Day virtually and at the New York Stock Exchange on September 15, 2022. For more information or to register please visit https://sqm.connectid.cloud/.
• As a result of our operations during the first half of the year, over US$2.2 billion will go to public coffers.
• SQM reported net income for the six months ended June 30, 2022 of US$1,655.4 million.
• Earnings per share totaled US$5.80 for the first half of 2022, higher than the US$0.55 reported for the first half of 2021.
• Revenues for the first half of 2022 were US$4,618.6 million.

SQM will hold a conference call to discuss these results on Thursday, August 18, at 12:00pm 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/sqm220818.html

SANTIAGO, Chile, Aug. 17, 2022 /PRNewswire/ -- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) today reported earnings for the six months ended June 30, 2022 of US$1,655.4 million (US$5.80 per share), an over 940% increase from US$157.8 million (US$0.55 per share) reported for the six months ended June 30, 2021. Gross profit reached US$2,462.1 million (53.3% of revenues) for the six months ended June 30, 2022, 663% higher than US$322.5 million (28.9% of revenues) recorded for the six months ended June 30, 2021. Revenues totaled US$4,618.6 million for the six months ended June 30, 2022, representing an increase of 314% compared to US$1,116.5 million reported for the six months ended June 30, 2021.

The Company also announced earnings for the second quarter of 2022 of US$859.3 million (US$3.01 per share), an increase of 857% compared to US$89.8 million (US$0.31 per share) for the second quarter of 2021. Gross profit for the second quarter of 2022 reached US$1,297.4 million, 598% higher than the US$185.9 million recorded for the second quarter 2021. Revenues totaled US$2,598.8 million for the second quarter 2022, an increase of approximately 342% compared to US$588.0 million for the second quarter of 2021.

SQM's Chief Executive Officer, Ricardo Ramos, stated: "We are very pleased with our results for the first half of the year. These results were related to favorable market conditions related to fertilizers, iodine and lithium and decades of investment, hard work, R&D and know-how. In fact, this year we are celebrating 25 years in the lithium industry. During this time, we have become a great partner to the government in this "public-private" alliance with CORFO. As a result of our operations during the first half of the year, over US$2.2 billion are going to public coffers due to the lithium operations. More than financial contributions, we are content that we have been able to develop the Salar de Atacama in such a way that we have become a world-renowned, integrated producer of value-added lithium products in Chile that are directly used in cutting edge batteries all over the world creating value to the local surrounding communities. All of this through a successful public-private partnership."

He closed by saying: "We are close to reach 180,000 metric tons of lithium carbonate capacity and as mentioned previously, we are not stopping there. Today, we are working to complete a lithium carbonate capacity of 210,000 metric ton of sought after, top quality, value-added product which will be produced right here in Chile. We remain committed to reducing our usage of brine and water through technology and continuous innovation. This new capacity will let us produce high value-added lithium products to power more than 5 million electric vehicles."

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 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, 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, specifically 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.

View original content:https://www.prnewswire.com/news-releases/sqm-reports-earnings-for-the-six-months-ended-june-30-2022-301608144.html

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

FAQ

What were SQM's earnings for the second quarter of 2022?

SQM reported earnings of US$859.3 million for Q2 2022, an increase of 857% compared to US$89.8 million in Q2 2021.

How did SQM's revenue perform in the first half of 2022?

SQM's revenue for the first half of 2022 was US$4,618.6 million, representing a 314% increase from US$1,116.5 million in the same period in 2021.

What is the future outlook for SQM in lithium production?

SQM aims to increase its lithium carbonate capacity to 210,000 metric tons, contributing significantly to the electric vehicle market.

When will SQM hold its conference call to discuss earnings?

SQM will hold a conference call on August 18, 2022, at 12:00 PM ET.