SQM Reports 2Q 2020 Earnings

(SQM, 19.Aug.2020) — Sociedad Química y Minera de Chile, S.A. reported earnings today for the six months ended June 30, 2020 of US$95.8 million (US$0.36 per share), a decrease from US$150.7 million (US$0.57 per share), representing a 36.4% decrease compared to the earnings reported for the six months ended June 30, 2019. Gross profit reached US$235.6 million (27.7% of revenues) for the six months ended June 30, 2020, lower than US$288.0 million (28.8% of revenues) recorded for the six months ended June 30, 2019. Revenues totaled US$850.5 million for the six months ended June 30, 2020, representing a decrease of 14.8% compared to US$998.4 million reported for the six months ended June 30, 2019.

Highlights

— SQM reported net income for the six months ended June 30, 2020 of US$95.8 million.

— Earnings per share totaled US$0.36 for the first half of 2020, lower than the US$0.57 reported for the first half of 2019.

— Revenues for the first half of 2020 were US$850.5 million.

— Lithium sales volumes during the second quarter 2020 exceeded 12,600 metric tons, almost 50% higher than sales volumes reported in the first quarter of the year.

— Second quarter iodine prices were stable, and hovered around US$35 per kilogram, while the business line contributed approximately 39% to our overall gross profit during the first half of the year.

— We began delivery of solar salts, selling over 60,000 metric tons during the second quarter. We remain on track to sell about 150,000 metric tons this year.

— Plants continued operating without any material impact related to the Covid-19 pandemic.

— Published our audited Annual Sustainability Report

The Company also announced earnings for the second quarter of 2020, reporting net income of US$50.8 million (US$0.19 per share) compared to US$45.0 million (US$0.17 per share) during the first quarter 2020 and US$70.2 million (US$0.27 per share) for the second quarter 2019. Gross profit for the second quarter 2020 reached US$127.8 million; lower than the US$142.5 million recorded for the second quarter 2019, but higher than the US$107.7 million reported during the first quarter 2020. Revenues totaled US$458.5 million, a decrease of approximately 7.2% compared to the second quarter 2019, when revenues amounted to US$494.1 million and an increase of 16.9% compared to US$392.0 million reported during the first quarter 2020.

SQM’s Chief Executive Officer, Ricardo Ramos, stated: “The hard work and commitment of our team, especially in the north of Chile, during these difficult times, has allowed us to report a net income for the second quarter of approximately US$50 million. On top of this, as of today, we have met or exceeded all internal production goals which included record production levels of lithium carbonate.

“Although the downward lithium pricing trend continued during the second quarter, I would like to highlight that lithium sales volumes exceeded 12,600 metric tons, almost 50% higher than sales volumes reported in the first quarter of the year, in line with our goal of selling higher lithium sales volumes this year, when compared with last year, thus increasing our market share. In the iodine market, prices were stable, and hovered around US$35 per kilogram, and the business line contributed approximately 39% to our overall gross profit.

“We have been able to evoke change and promote efficiency resulting from the challenges and opportunities than have arisen amidst the 2020 Covid-19 pandemic. We have a diverse portfolio, a strong balance sheet, high-quality assets and great team. These company attributes will continue to help us successfully manage the turbulent times we are all facing.”

About SQM

SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange. 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.

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