Le Lézard
Classified in: Mining industry, Business
Subject: ERN

SQM Reports Earnings for the Nine Months Ended September 30, 2019

SANTIAGO, Chile, Nov. 20, 2019 /PRNewswire/ --


  • SQM reported net income(1) for the nine months ended September 30, 2019 of US$211.2 million.
  • Revenues for first nine months of 2019 were US$1,471.4 million, lower than revenues in the nine months of 2018.
  • Adjusted EBITDA(2) margin for the nine months ended September 30, 2019 reached 33%.
  • SQM will hold a conference call to discuss these results on Thursday, November 21 at 10:00am ET (12:00pm Chile time).

Participant Dial-In (Toll Free):


Participant International Dial-In:


Webcast: https://services.choruscall.com/links/sqm191121.html

Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM) reported today earnings for the nine months ended September 30, 2019 of US$211.2 million (US$0.80 per ADR), a decrease from US$331.2 million (US$1.26 per ADR) for the nine months ended September 30, 2018. Gross profit(3) reached US$422.2 million (28.7% of revenues) for the nine months ended September 30, 2019, lower than US$579.1 million (34.1% of revenues) recorded for the nine months ended September 30, 2018. Revenues totaled US$1,471.4 million for the nine months ended September 30, 2019, representing a decrease of 13.5% compared to US$1,700.6 million reported for the nine months ended September 30, 2018.

The Company also announced earnings for the third quarter of 2019, reporting net income of US$60.5 million (US$0.23 per ADR) compared to US$83.5 million (US$0.32 per ADR) for the third quarter of 2018. Gross profit for the third quarter of 2019 reached US$134.2 million, lower than the US$162.1 million recorded for the third quarter of 2018. Revenues totaled US$473.1 million, a decrease of approximately 12.9% compared to the third quarter of 2018, when revenues amounted to US$543.2 million.

SQM's Chief Executive Officer, Ricardo Ramos, stated: "The results of the third quarter of 2019 were impacted by lower sales volumes and, as anticipated, significantly lower average lithium prices. The increase in iodine prices partially offset the results of this quarter".    

"The decrease in lithium prices was a result of lower than expected demand growth this year, related to changes in Chinese subsidies and customers' decision to reduce their inventory. We estimate that the total demand growth in 2019 could be lower than our long-term estimates range of 16-20%, reaching approximately 14%. Consequently, the negative pricing trend seen in the third quarter should continue into the fourth quarter of 2019. We remain positive on our 2019 sales volumes reaching approximately 47,000 MT. Despite the short-term softening in the lithium demand this year, we remain very positive about the long-term demand fundamentals and continue with our commitments to the previously announced capacity expansions in Chile and the development of the Mt. Holland project in Australia."

He continued by saying, "This year, we have seen positive price dynamics in iodine and derivatives business line where our average price has increased when compared to 2018. In the recent years, we have been increasing our iodine sales volumes ahead of capacity expansion, thus significantly reducing inventory levels. That has allowed us to recover our market share but put certain constraints on continuing our growth at the same pace. Because of these constraints, our iodine sales volumes could be slightly lower this year, reaching approximately 13,000 MT and that trend may continue in 2020. We are currently working on the preliminary stages of iodine capacity expansion to serve the market needs in the future".    

Mr. Ramos went on to say: "The company is closely monitoring the recent events in Chile, especially their effect on the transit of our employees and contractors, logistics and port services. As always, our priority has been the safety and well-being of our employees, contractors and neighboring communities".

About SQM

SQM´s business strategy is to be a global company, with people committed to excellence, dedicated to the extraction of minerals and selectively integrated in the production and sale of products for the industries essential for human development (e.g. food, health, technology). This strategy was built on the following five principles:

These principles are based on the following key concepts:

For further information, contact:

Gerardo Illanes 56-2-24252022 / gerardo.illanes@sqm.com
Kelly O'Brien 56-2-24252074 / kelly.obrien@sqm.com
Irina Axenova 56-2-24252280 / irina.axenova@sqm.com

For media inquiries, contact: 

Maria Ignacia Lopez / ignacia.lopez@sqm.com   
Pablo Pisani / pablo.pisani@sqm.com 
Tamara Rebolledo / tamara.rebolledo@sqm.com  (Northern Region)

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 business outlook, future economic performance, anticipated 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. 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, specifically the most recent annual report on Form 20-F, which identifies 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.

SOURCE Sociedad Quimica y Minera de Chile, S.A. (SQM)

These press releases may also interest you

at 15:53
Fire and safety innovators and leading manufacturers have partnered to ensure apparatus operators can focus on the fireground by pairing innovative technology with a truck design that considers every detail of operation. IDEX Fire & Safety and...

at 15:30
Teck Resources Limited ("Teck") announced today that smoke from wildfires in southwestern British Columbia has affected operations at its Trail Operations metallurgical facility. Specifically, the oxygen plant at Trail has been shut down due to...

at 15:30
BizVibe has made available 100+ company profiles for the inflatable product manufacturers and suppliers category on its B2B platform. Companies listed in this product category are primarily engaged in manufacturing or supplying various types of...

at 14:45
(www.farresources.com) ("FAR Resources" or the "Company")  is pleased to announce that it has concluded an option agreement to acquire a 100% interest in the Jean Lake lithium-gold project of Mount Morgan Resources Ltd. The 1002 hectare Jean Lake...

at 13:08
Enterprise-Wide Focus on American InfrastructureIn a Wall Street Journal article published August 3, 2021, Versalift equipment was the focal point of the featured photograph. The article describes the challenge of delivering high speed internet to...

at 12:39
Fast Company released its third annual Best Workplaces for Innovators list today, honoring businesses and organizations that demonstrate a deep commitment to encouraging innovation at all levels. P&G Ventures, Procter & Gamble's internal startup...

News published on 20 november 2019 at 19:39 and distributed by: