(SQM, 21.Aug.2019) — SQM reported net income for the six months ended June 30, 2019 of US$150.7 million.
Highlights
— SQM reported net income for the six months ended June 30, 2019 of US$150.7 million.
— Earnings per share totaled US$0.57 for the first half of 2019, lower than the US$0.94 reported for the first half of 2018.
— Revenues for the first half of 2019 were US$998.4 million, 13.7% lower than revenues for the first half of 2018.
Sociedad Química y Minera de Chile S.A. (SQM) reported earnings for the six months ended June 30, 2019 of US$150.7 million (US$0.57 per share), a decrease from US$247.7 million (US$0.94 per share), representing a 39.1% decrease compared to the earnings reported for the six months ended June 30, 2018. Gross profit reached US$288.0 million (28.8% of revenues) for the six months ended June 30, 2019, lower than US$417.1 million (36.0% of revenues) recorded for the six months ended June 30, 2018. Revenues totaled US$998.4 million for the six months ended June 30, 2019, representing a decrease of 13.7% compared to US$1,157.4 million reported for the six months ended June 30, 2018.
The Company also announced earnings for the second quarter of 2019, reporting net income of US$70.2 million (US$0.27 per share) compared to US$133.9 million (US$0.51 per share) for the second quarter 2018. Gross profit for the second quarter 2019 reached US$142.5 million; lower than the US$224.4 million recorded for the second quarter 2018. Revenues totaled US$494.1 million, a decrease of approximately 22.6% compared to the second quarter 2018, when revenues amounted to US$638.7 million.
SQM’s Chief Executive Officer, Ricardo Ramos, stated: “We reported earnings for the six months ended June 30, 2019 of US$150.7 million. The second quarter results were mainly impacted by lower lithium sale prices, partly compensated by higher lithium sales volumes, lower potassium chloride volumes, and the lack of solar salt sales during the second quarter. These factors were partially offset by higher iodine prices. We have seen lithium supply growing more than demand over the past few quarters, putting pressure on prices. We sold higher sales volumes in the second quarter and expect to sell higher volumes in the second half of the year as we prepare for a 30% to 40% increase in sales volumes next year, which will help us recover some of the market share lost in previous years.”
“We are expecting higher sales volumes in the potassium chloride business line this year than previously anticipated, reaching close to 600,000 metric tons, this implies significantly higher sales volumes during the second half of the year. Additionally, our sales volumes could grow in the future as we get back to the brine extraction levels that we had at the beginning of last year. We still expect the solar salt sales volumes this year of between 45,000 and 50,000 metric tons, while for the upcoming years these volumes should grow significantly as we will be supplying a major project in the Middle East that will require approximately 400,000 metric tons of product between 2020 and 2022.”
Finally, he closed by saying, “The margins in the iodine business line are becoming more attractive as prices are up almost 20% when compared to last year. We expect prices to continue on this upward trend as the market remains tight.”
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