(SQM, 16.Aug.2023) — Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported earnings for the six months ended 30 June 2023 of $1,330.1mn ($4.66 per ADR), a decrease of approximately 20% from $1,655.4mn ($5.80 per ADR) for the six months ended 30 June 2022.
Gross profit reached $1,920.7mn (44.5% of revenues) for the six months ended 30 June 2023, lower than $2,462.1mn (53.3% of revenues) recorded for the six months ended 30 June 2022. Revenues totaled $4,315.6mn for the six months ended 30 June 2023, representing a decrease of approximately 7% compared to $4,618.6mn reported for the six months ended 30 June 2022.
Highlights
- SQM reported net income for the six months ended 30 June 2023 of $1,330.1mn compared to $1,655.4mn for the same period last year. Earnings per share totaled $4.66 for the six months ended 30 June 2023.
- Revenues for the six months ended 30 June 2023, reached $4,315.6mn compared to $4,618.6mn 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 $1.7bn for the six months ended 30 June 2023.
SQM will hold a conference call to discuss these results on Thursday, 17 August, 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
The company also announced earnings for the second quarter of 2023 of $580.2mn ($2.03 per share), a decrease of approximately 32% compared to $859.3mn ($3.01 per share) for the second quarter of 2022. Gross profit for the second quarter of 2023 reached $855.1mn, approximately 34% lower than the $1,297.4mn reported for the second quarter 2022. Revenues totaled $2,051.7mn for the second quarter of 2023, a decrease of approximately 21% compared to $2,598.8mn 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 $1.7bn for the first six months of 2023, including payments related to the public-private alliance with CORFO.
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