SQM REPORTS EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2022
Highlights
- SQM reported net income for the three months ended March 31, 2022 of US$796.1 million, compared to US$68.0 million in same period of 2021.
- Revenues for the three months ended March 31, 2022, were US$2,019.8 million.
- Earnings per share totaled US$2.79 for the three months ended March 31, 2022.
- Our first quarter results include payments related to the agreement with Corfo and tax provisions that totaled approximately US$800 million.
- Adjusted EBITDA margin for the first three months of 2022 reached 58.7%.
- SQM will hold a conference call to discuss these results on Thursday, May 19, at 12:00pm ET (12:00pm Chile time).
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SANTIAGO, Chile, May 19, 2022 /PRNewswire/ -- 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, 2022 of US$796.1 million (US$2.79 per share), an increase from US$68.0 million (US$0.26 per share) reported for the three months ended March 31, 2021. Gross profit reached US$1,164.7 million (57.7% of revenues) for the three months ended March 31, 2022, compared to US$136.6 million (25.9% of revenues) recorded for the three months ended March 31, 2021. Revenues totaled US$2,019.8 million for the three months ended March 31, 2022, an increase compared to the US$528.5 reported for the three months ended March 31, 2021.
SQM's Chief Executive Officer, Ricardo Ramos, stated: "Our first quarter results reflect several positive circumstances; first, the impact of higher prices in all our business lines, where significant increases in lithium prices stand out, and second, the successful long-term, operational and commercial strategy."
Related to our operations in the Salar de Atacama, it is important to remember that SQM began this project by acquiring the participation from producers from Chile and the United States in 1993. Before our acquisition, there had been seven years of investments and studies by these companies. We assumed the risk, developed, invested and executed the project. It has not been an easy task; the natural resource was not well known, and our project has had its ups and downs. Mining activities require long periods of development, dialogue and collaboration with the neighboring communities, relevant investments from shareholders and, above all, a strong team to innovate and develop technologies to operate the natural resource."
Today we can proudly report that we are a leader in the lithium industry. We have almost tripled our production levels in three years while we have significantly decreased the extraction of brines. We are the most integrated lithium producer in its country of origin, delivering high-quality products that can be used directly in the production of high-end battery components.
Our first quarter results include payments related to the agreement with Corfo and tax provisions that totaled approximately US$800 million. In total, the amount is similar to the earnings reported by all of our business during the first quarter of this year.
SQM's lithium business is a very good example of a successful public-private partnership. No other operation delivers more resources proportionally to Chilean coffers; approximately 60% of the operating margin from lithium is dedicated to payments to Corfo and taxes."
Mr. Ramos finished by saying: "We continue to permanently analyze new ideas and study new projects in all our businesses. We will review our investment plan in the coming months, and we should update our projections following that review. It is very likely that we will increase the resources oriented to the development of business in Chile and abroad."
Sustainable Development
In April 2022 we published our audited 2021 Sustainability Report. For the twelfth consecutive year, the information was presented under the GRI standards (Global Standard Initiative) and for first time, under SASB (Sustainability Accounting Standards Board) standards. We would like to highlight that SQM's workforce is made up of approximately 19% women, in an industry where the average in Chile is 13%. Furthermore, 30% of the executive positions at SQM are filled by women. We are proud that in the Northern regions of Chile, our we employment base is over 82% local.
We continue to keep sustainability at the core of the company and during 2021 we were able to reduce our carbon emissions 28% per ton when compared to 2020. Specific to the lithium production, we reduced direct water consumption for lithium carbonate approximately 27% in 2021 when compared to 2020.
We invite you to read our Sustainability Report in detail to learn more about all of our environmental and social efforts. Report
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.
For further information, contact:
Gerardo Illanes 56-2-24252022 / [email protected]
Kelly O'Brien 56-2-24252074 / [email protected]
Irina Axenova 56-2-24252280 / [email protected]
For media inquiries, contact:
Maria Ignacia Lopez / [email protected]
Pablo Pisani / [email protected]
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 Sociedad Quimica y Minera de Chile, S.A. (SQM)