SANTIAGO, Chile, Aug. 25, 2016 /PRNewswire/ -- Sociedad
Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock
Exchange: SQM-B, SQM-A) reported today earnings for the
six months ended June 30, 2016 of
US$141.6 million (US$0.54 per ADR), a decrease from US$154.9 million (US$0.59 per ADR) for the six months ended
June 30, 2015. Gross
Margin reached US$260.5
million (29.6% of revenues) for the six months ended
June 30, 2016, lower than
US$295.2 million (33.9% of revenues)
recorded for the six months ended June 30,
2015. Revenues totaled US$881.5 million for the six months ended
June 30, 2016, representing an
increase of 1.1% compared to US$871.8
million reported for the six months ended June 30, 2015.
The Company also announced earnings for the second quarter of
2016, reporting net income of US$83.1
million (US$0.32 per ADR)
compared to US$83.2 million
(US$0.32 per ADR) for the second
quarter of 2015. Gross margin for the second quarter of 2016
reached US$146.9 million; lower than
the US$164.6 million recorded for the
second quarter of 2015. Revenues totaled US$489.6 million, an increase of approximately
1.1% compared to the second quarter of 2015, when revenues amounted
to US$484.2 million.
SQM's Chief Executive Officer, Patricio
de Solminihac, stated, "During the first half of 2016 we saw
higher volumes of potassium chloride, iodine, lithium and specialty
plant nutrients. These higher sales volumes were in line with our
expectations as were the market trends in general: higher prices in
lithium, the continued downward trend in iodine prices and lower
average prices of potassium products."
"In the fertilizer markets, potassium chloride sales volumes for
the first six months of 2016 were up over 14% when compared to the
same period last year. We expect the sales volumes for 2016 to be
at least 20% stronger than the sales volumes that we saw last year.
Following the closure of potassium chloride contracts between other
potash producers and China, we
have seen some slight price recovery recently, and hope that this
trend will continue during the remainder of 2016."
"Pricing in the specialty plant nutrition business line has been
more stable than in the potassium chloride and potassium sulfate
business line, but we did see a slight decrease of almost 4% during
the first half of the year, mainly as a result of lower potassium
chloride prices. These lower prices were mostly offset by higher
sales volumes, specifically related to our water soluble products,
a market where we still expect to see market growth during
2016."
"Our sales volumes of iodine continue to grow, as proof, in the
second quarter we reported the strongest sales volumes we have seen
in years. However, we do not expect the downward price pressure to
soften in the near future."
He went on to say, "We continue to believe in the solar
salts market, but due to some delays in concentrated solar
power plant projects, it is estimated that solar salt sales volumes
during 2016 will not reach the 70,000MT that we had originally
anticipated. We believe that the majority of these sales volumes
will be delayed."
Mr. de Solminihac concluded by saying, "The lithium market
continues to demand more supply from major players. In response to
this need, our sales volumes grew over 30% during the first half of
this year when compared with 2015. We expect our sales volumes will
surpass our original expectations, and we could see sales volumes
increase over 25% when compared to sales volumes seen last year.
These higher volumes will be further emphasized by the higher
prices of both lithium carbonate and lithium hydroxide. In other
lithium news, we continue to move forward with our partner Lithium
Americas on the feasibility study related to the Caucharí-Olaroz
lithium project in Argentina. We
are pleased to announce that we now expect production capacity
could reach 50,000MT. This capacity will be brought to the market
in two stages of 25,000MT each, and as originally planned, we are
anticipating that construction will begin during the first half of
2017."
About SQM
SQM is an integrated producer and distributor of specialty plant
nutrients, iodine, lithium, potassium-related fertilizers and
industrial chemicals. Its products are based on the
development of high quality natural resources that allow the
Company to be a leader in costs, supported by a specialized
international network with sales in over 110 countries. SQM's
development strategy aims to maintain and strengthen the Company's
position in each of its businesses.
The leadership strategy is based on the Company's competitive
advantages and on the sustainable growth of the different markets
in which it participates. SQM's main competitive advantages in its
different businesses include:
- Low production costs based on vast and high quality natural
resources;
- Know-how and its own technological developments in its various
production processes;
- Logistics infrastructure and high production levels that allow
SQM to have low distribution costs;
- High market share in all its core products;
- International sales network with offices in 20 countries and
sales in over 110 countries;
- Synergies from the production of multiple products that are
obtained from the same two natural resources;
- Continuous new product development according to the specific
needs of its different customers;
- Conservative and solid financial position.
For further information, contact:
Gerardo Illanes 56-2-24252022 /
gerardo.illanes@sqm.com
Kelly O'Brien 56-2-24252074 /
kelly.obrien@sqm.com
For media inquiries, contact:
Carolina García Huidobro /
carolina.g.huidobro@sqm.com
Alvaro Cifuentes /
Alvaro.cifuentes@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.