SQM REPORTS EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2023

Rhea-AI Summary

SQM reported net income of US$1,330.1 million for the six months ended June 30, 2023, a decrease of 20% compared to the same period last year. Revenues for the same period reached US$4,315.6 million, a decrease of 7%. SQM signed long-term lithium supply agreements with Ford Motor Company and LG Energy Solution. The company's total contribution to the Chilean treasury amounted to approximately US$1.7 billion for the six months ended June 30, 2023.

Positive

• SQM reported net income of US$1,330.1 million for the six months ended June 30, 2023, a decrease of 20% compared to the same period last year.
• Revenues for the six months ended June 30, 2023, reached US$4,315.6 million, a decrease of 7% compared to the same period last year.
• SQM signed long-term lithium supply agreements with Ford Motor Company and LG Energy Solution.
• The company's total contribution to the Chilean treasury amounted to approximately US$1.7 billion for the six months ended June 30, 2023.

Negative

• None.

Highlights

• SQM reported net income for the six months ended June 30, 2023 of US$1,330.1 million compared to US$1,655.4 million for the same period last year. Earnings per share totaled US$4.66 for the six months ended June 30, 2023.
• Revenues for the six months ended June 30, 2023, reached US$4,315.6 million compared to US$4,618.6 million reported for the same period last year.
• SQM signed long-term lithium supply agreements with Ford Motor Company and LG Energy Solution.
• Total contribution to the Chilean treasury amounted to approximately US$1.7 billion for the six months ended June 30, 2023.

SQM will hold a conference call to discuss these results on Thursday, August 17, at 12:00pm 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=R7gtDgWV

SANTIAGO, Chile, Aug. 16, 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 six months ended June 30, 2023, of US$1,330.1 million (US$4.66 per ADR), a decrease of approximately 20% from US$1,655.4 million (US$5.80 per ADR) for the six months ended June 30, 2022.

Gross profit reached US$1,920.7 million (44.5% of revenues) for the six months ended June 30, 2023, lower than US$2,462.1 million (53.3% of revenues) recorded for the six months ended June 30, 2022. Revenues totaled US$4,315.6 million for the six months ended June 30, 2023, representing a decrease of approximately 7% compared to US$4,618.6 million reported for the six months ended June 30, 2022.

The Company also announced earnings for the second quarter of 2023 of US$580.2 million (US$2.03 per share), a decrease of approximately 32% compared to US$859.3 million (US$3.01 per share) for the second quarter of 2022. Gross profit for the second quarter of 2023 reached US$855.1 million, approximately 34% lower than the US$1,297.4 million reported for the second quarter 2022. Revenues totaled US$2,051.7 million for the second quarter of 2023, a decrease of approximately 21% compared to US$2,598.8 million for the second quarter of 2022.

SQM's Chief Executive Officer, Ricardo Ramos, stated: "Our second quarter 2023 results were lower when compared to the same period last year primarily due to the lower realized average sales prices in the lithium business. While lithium sales volumes showed a significant recovery during this quarter, reaching historical high levels, lower spot prices especially in China in the beginning of the second quarter had a negative impact on reported sales and net income. We continue to see positive dynamic in lithium market supported by strong EV sales volumes in different markets and expect the global lithium demand growth to reach at least 20% this year".

He closed by saying: "During this quarter we signed a couple of important long-term lithium supply agreements, including the agreements with Ford Motor Company and LG Energy Solutions. We are proud of the trust that our partners put in our ability to grow our production volumes and deliver high quality lithium products to support global decarbonization efforts". 

The strong performance of the iodine business continues with higher average sales prices and increased sales volumes expected in 2023 when compared to last year. We are making progress in our capacity expansion projects and expect to produce additional 800 metric tons of iodine this year to support the growth in the x-ray contrast media segment.

Our 2022 Sustainability report has been released, providing a comprehensive account of our dedication and progress in achieving more sustainable operations and the development of low-carbon emission products.

SQM´s total contribution to the Chilean treasury reached close to US$1.7 billion for the first six 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)

FAQ

What was SQM's net income for the six months ended June 30, 2023?

SQM reported net income of US$1,330.1 million for the six months ended June 30, 2023.

What were SQM's revenues for the six months ended June 30, 2023?

Revenues for the six months ended June 30, 2023, reached US$4,315.6 million.

Who did SQM sign long-term lithium supply agreements with?

SQM signed long-term lithium supply agreements with Ford Motor Company and LG Energy Solution.

What was SQM's total contribution to the Chilean treasury for the six months ended June 30, 2023?

SQM's total contribution to the Chilean treasury amounted to approximately US$1.7 billion for the six months ended June 30, 2023.