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Highlights
- SQM reported net income for the three months ended March 31, 2021 of US$68.0 million , compared to US$45.0 million in same period of 2020.
- Revenues for the three months ended March 31, 2021 were US$528.5 million .
- Adjusted EBITDA margin for the first three months of 2021 reached 31.2%.
- Earnings per share totaled US$0.26 for the three months ended March 31, 2021 .
- SQM will hold a conference call to discuss these results on Thursday, May 20 , at 12:00pm ET ( 12:00pm Chile time).
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Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported earnings today for the three months ended March 31, 2021 of US$68.0 million ( US$0.26 per share), an increase from US$45.0 million ( US$0.17 per share) reported for the three months ended March 31, 2020 . Gross profit reached US$136.6 million (25.9% of revenues) for the three months ended March 31, 2021 , compared to US$107.7 million (27.5% of revenues) recorded for the three months ended March 31, 2020 . Revenues totaled US$528.5 million for the three months ended March 31, 2021 , representing an increase of 34.8% compared to US$392.0 reported for the three months ended March 31, 2020 .
SQM's Chief Executive Officer, Ricardo Ramos , stated: "Our earnings during the first quarter this year increased around 50% when compared to the same period last year as a result of higher sales volumes in almost all of our business lines. At the same time, we saw positive price trends in each of our business lines. We have seen a recovery in the iodine market which was reflected in 30% higher volumes when compared to the previous quarter. We also have good news from the fertilizer business lines with the prices and global demand of most fertilizers increasing as a result of good farmer economics, leading to the highest revenues reported in the last two years in the SPN business line".
He continued by saying, "In the lithium business we have only seen positive news over the past few months. We saw a strong demand growth for electric vehicles during the first quarter of the year, more than doubling when compared to last year, making us believe that annual demand for lithium chemicals could grow more than 30%, more than previously expected. As anticipated, prices reached an inflection point in the fourth quarter 2020 and we reported a price increase during the first quarter of this year which we believe should accelerate quarter after quarter for the rest of the year as sales contracts expire. Our lithium capacity expansions in Chile are moving forward ahead of schedule, and as a result, we expect sales volumes to surpass 85,000 metric tons of lithium products this year.
We are proud to do all of this while strengthening our position as the most sustainable lithium producer in the world".
Mr. Ramos finished by saying, "Last month, we successfully completed a capital increase process raising over US$1.1 billion . This capital increase will allow us to not just continue working on the expansion projects we have previously announced, but also to capture the many opportunities the lithium business will offer in the near future and strengthen our position in the iodine, SPN and solar salt businesses."
About SQM
SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). 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. We aim to maintain our leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets by:
- Ensuring access to the best assets related to our current business lines by expanding our global presence;
- Actively searching for attractive minerals allowing us diversification opportunities to replicate and expand our existing mining capacities;
- Strengthening our operational, logistical and commercial excellence process from beginning to end, while looking to be a cost leader; and
- Maintaining a conservative financial policy which allows us to successfully endure economic cycles that could impact the markets in which we sell.
We are a company built and managed by a culture based on excellence, safety, sustainability and integrity. We work every day to expand this culture through the attraction, retention and development of talent as well encouraging an inclusive and diverse work environment ensuring the unique knowledge and innovation needed to sustain our business. We strive for safe and accident-free operations by promoting conduct that favors the physical safety and psychological well-being of everyone who works directly and indirectly with the Company.
We position ourselves as leaders in sustainability and commit to a sustainable future where we constantly work to responsibly manage natural resources, protect human rights, care for the environment, form close and trusting relationships with our neighboring communities and create value. Within these communities, we support projects and activities with a focus on education, business development, and protection of the environment and historical heritage. We create value for our clients through established commercial models and the production and development of differentiated products that respond to their industry and market specific needs, constantly creating and providing a sustainable improvement in the quality of life. We will continue to create value for all of our stakeholders through responsible management of natural resources, sustainable expansion projects and improvement of our existing operations, with a focus on minimizing our environmental impacts by reducing our carbon, energy and water footprints and working together with our shareholders, employees, customers, suppliers and communities.
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 capital expenditures, financing sources, Sustainable Development Plan, 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, including our ability to successfully implement the Sustainable Development Plan. 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 other 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, except as required by law.
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SOURCE SQM
