SANTIAGO, Chile, March 3, 2021 /PRNewswire/ --
Highlights
- SQM reported net income for the twelve months ended
December 31, 2020 of US$164.5 million.
- Revenues during 2020 were US$1,817.2
million.
- SQM will hold a conference call to discuss these results on
Thursday, March 4 at 10:00am ET (12:00pm
Chile time).
Participant Dial-In (Toll Free): 1-855-238-1018
Participant International Dial-In: 1-412-542-4107
Webcast: https://services.choruscall.com/links/sqm210304.html
Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM;
Santiago Stock Exchange: SQM-B, SQM-A) today reported net
income for the twelve months ended December 31, 2020 of US$164.5 million (US$0.63 per ADR), a decrease from US$278.1 million (US$1.06 per ADR) reported for the twelve months
ended December 31, 2019. The net
income was affected by a settlement fee related to a class action
lawsuit against the Company in the United
States which had a one-time, before-tax effect of
US$62.5 million.
Gross profit reached US$482.9
million (26.6% of revenues) for the twelve months ended
December 31, 2020, lower than
US$560.1 million (28.8% of revenues)
recorded for the twelve months ended December 31, 2019. Revenues totaled
US$1,817.2 million for the twelve
months ended December 31, 2020,
representing a decrease of 6.5% compared to US$1,943.7 million reported for the twelve months
ended December 31, 2019.
The Company also announced earnings for the fourth quarter of
2020, reporting net income of US$67.0
million (US$0.25 per ADR)
compared to US$66.9 million
(US$0.25 per ADR) for the fourth
quarter of 2019. Gross profit for the fourth quarter of 2020
reached US$132.5 million;
approximately 3.9% lower than the US$137.8
million recorded for the fourth quarter of 2019.
Revenues for the fourth quarter of 2020 totaled US$513.8 million, an increase of approximately
8.8% compared to the fourth quarter of 2019, when revenues amounted
to US$472.2 million.
SQM's Chief Executive Officer, Ricardo
Ramos, stated: "Last year was particularly positive from an
operational point of view. As a result of the effort and dedication
of all of our workers, we were able to successfully implement
effective protocols which allowed us to maintain our production
facilities operating throughout the year. Despite the different
restrictions implemented aimed at prioritizing the health of our
workers, collaborators and nearby communities, we were able to
exceed all our original goals related to production volumes,
sustainability, cost and quality in all of our business lines."
He continued, "In particular, I want to highlight our lithium
carbonate operations, in which our production surpassed 70,000
metric tons in 2020 and in which all quality indices exceeded our
objectives for the year. Our production trends remain very
positive, during the first two months of 2021, we have produced
more than 7,000 metric tons of lithium carbonate per month. All of
the above allows us to be optimistic about our goal of completing
our new lithium carbonate expansion, which is expected to reach
120,000 metric tons by the end of this year and 180.000 metric tons
at the end of 2023. Another significant milestone in 2020 was the
compliance with quantity, logistics capacity and strict quality
control of solar salt shipments that exceeded 160,000 metric tons.
We believe that that we are prepared to satisfy the market
needs with the annual volumes of over 200,000 metric tons of
solar salts."
He closed by saying, "The fourth quarter was not only the
quarter with the highest operating margin of the year, but it also
set a historical record for lithium sales volumes. We sold more
than 25,000 metric tons and complied with all logistics, production
and quality restrictions, a clear sign that we are prepared
to continue to grow rapidly as one of the main lithium suppliers
for the battery industry. Our lithium sales volumes rose more than
40% in the year despite the market growing approximately 6%,
proving that we have indisputable competitive advantages related to
production costs and capacity, logistics response and high-quality
production."
Sustainable Development
"We continue to focus diligently on our Sustainable Development
Plan and are proud to announce that we are the first lithium
mining company in the world to join the Initiative for Responsible
Mining Assurance (IRMA). For years, we have built a sustainable
operation in an effort to protect the environment, our communities
and contribute to sustainable industries. Becoming a Pending Member
of IRMA in our operations in the Salar de Atacama, helps us to
consolidate best practices to address environmental, social and
governance challenges," affirmed Mr. Ramos.
IRMA certification is an initiative that promotes responsible
mining practices, providing verification at a global level. Full
Membership is expected to be attained when we commence a publicly
announced independent audit based on the IRMA Standard. This is a
new step in the company's commitment to the environment,
communities and the contribution to sustainable industries that is
reflected in our robust sustainability plan and human rights
policy.
This pending membership is part of our commitment to a high
level of transparency, seeking public reportability of the
objectives we established related to environmental matters,
sustainable operations and social responsibility. This membership
is also linked to the role we play in the value chain of strategic
industries for human development, among these being the revolution
in the electric vehicle market and sustainable mobility.
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.
View original
content:http://www.prnewswire.com/news-releases/sqm-reports-earnings-for-the-twelve-months-ended-december-31-2020-301240155.html
SOURCE Sociedad Quimica y Minera de Chile, S.A. (SQM)