Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the nine months ended September 30, 2023, of US$1,809.5 million (US$6.33 per ADR), a decrease of approximately 34.3% from US$2,755.3 million (US$9.65 per ADR) for the nine months ended September 30, 2022.
Gross profit reached US$2,674.3 million (43.4% of revenues) for the nine months ended September 30, 2023, lower than US$4,094.8 million (54.0% of revenues) recorded for the nine months ended September 30, 2022. Revenues totaled US$6,155.9 million for the nine months ended September 30, 2023, representing a decrease of approximately 18.8% compared to US$7,577.0 million reported for the nine months ended September 30, 2022.
The Company also announced earnings for the third quarter of 2023 of US$479.4 million (US$1.68 per share), a decrease of approximately 56.4% compared to US$1,099.9 million (US$3.85 per share) for the third quarter of 2022. Gross profit for the third quarter of 2023 reached US$753.6 million, approximately 53.8% lower than the US$1,632.7 million reported for the third quarter 2022. Revenues totaled US$1,840.3 million for the third quarter of 2023, a decrease of approximately 37.8% compared to US$2,958.3 million for the third quarter of 2022.
SQM's Chief Executive Officer, Ricardo Ramos, stated: "The third quarter 2023 results were impacted by significantly lower average sales prices in lithium and fertilizer business lines, partially offset by higher sales volumes, when compared to the same period last year, and higher iodine sales prices. When compared to the second quarter this year, our third quarter earnings were lower by 17%, mainly due to lower realized lithium prices. We continue to see strong fundamentals behind long-term lithium demand growth, supported by strong EV sales volumes and decarbonization targets across the globe. However, the excess of inventory accumulated across battery and lithium chemical supply chains, particularly in Asia, as well as additional lithium supply, have put pressure on lithium market prices and could continue to have a negative impact on lithium prices in the short-term."
He continued by saying: "As we continue with our expansions in Chile, our lithium carbonate capacity has reached 200,000 metric ton per year, and we expect to complete the expansion to 210,000 metric tons in the beginning of 2024, earlier than anticipated. This will enable us to redirect our attention to lithium production cost, ensuring that we maintain our cost competitive position. In Australia, the first production of spodumene concentrate at Mt. Holland is expected during this quarter, while in China, we have commenced lithium hydroxide production from lithium sulfate."
He finished by saying: "In September this year, our operations in the Salar de Atacama received IRMA 75 from the Initiative for Responsible Mining Assurance (IRMA), making us the first lithium company to reach this level. The on-site audit took place last year, as SQM committed to an independent assessment of its Salar de Atacama operations to provide increased transparency for all stakeholders. The ranking is an additional reinforcement of SQM's commitment to transparency of its operations and to produce the world's most sustainable lithium. We will continue our collaboration with the communities surrounding the Salar de Atacama and to work on further reducing our environmental footprint."
SQM´s total contribution to the Chilean treasury reached close to US$2.4 billion for the first nine months of 2023, including payments related to the public-private alliance with CORFO.
