(Energy Analytics Institute, 20.Nov.2024) — Sociedad Química y Minera de Chile S.A. reported a net loss for the nine months ended 30 Sep. 2024, of ($524.5)mn or ($1.84) per share, compared to $1,809.5mn or $6.33 per share reported for the same period last year.
Gross profit reached $1,033.3mn (29.9% of revenues) for the nine month period in 2024, lower than $2,674.3mn (43.4% of revenues) recorded for the nine month period in 2023, the Chilean company said 20 Nov. 2024 in an official statement.
Revenues totaled $3,455.0mn for the nine month period in 2024, representing a decrease of 43.9% compared to $6,155.9mn reported for the nine month period in 2023.
Third-quarter 2024 (3Q:24)
“Fertilizer markets have shown solid market dynamics with a market size recovery. Our Specialty Plant Nutrition volumes grew more than 20% year-on-year while our revenues in this business line increased close to 12%,” SQM’s CEO Ricardo Ramos stated in the statement.
“Iodine demand continued to be strong, leading to an increase in our sales volumes and revenues compared to last year. Prices continued to move up slightly quarter over quarter since the beginning of this year and we have used part of our inventories to answer market needs,” Ramos said.
SQM also announced net income for the 3Q:24 of $131.4mn or $0.46 per share, a decrease of 72.6% compared to $479.4mn or $1.68 per share for the 3Q:23. Gross profit for the 3Q:24 reached $280.8mn, 62.7% lower than the $753.6mn reported for the 3Q:23. Revenues totaled $1,076.9mn for the 3Q:24, a decrease of 41.5% compared to $1,840.3mn for the 3Q:23.
“In lithium, we reported sales volumes of more than 51 thousand metric tons of lithium products, an 18% growth year-on-year, demonstrating strong demand in the market. As anticipated, prices during the third quarter continued their downward trend, with average realized prices 24% lower than the second quarter this year. Although demand continues to grow at a strong pace, mainly driven by strong EV sales growth in China, we continue to see the prices pressured by an oversupply that persists despite the curtailment announcement we have seen over the past few weeks,” Ramos said.
Ramos closed by saying, “Our more than 30-year track record in the lithium market has proved that we have a long-term view in this business. Despite current market prices, we strongly believe in the lithium market and its fundamentals which are highly related to the clean energy transition. SQM is in a strong competitive position and well prepared to continue developing our projects in Chile and abroad to harvest the benefits of this transition.”
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