Santiago, Chile, March 3, 2021 / PRNewswire / –
Sociedad Química y Minera de Chile SA (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) announced today net revenue for the past twelve months December 31, 2020 of US $ 164.5 million ($ 0.63 by ADR), a decrease of US $ 278.1 million (US $ 1.06 by EIM) declared for the twelve months ended the 31st of December, 2019. Net income was affected by settlement costs related to a class action lawsuit against the company in United States which had a unique pre-tax effect of US $ 62.5 million.
Gross profit reached US $ 482.9 million (26.6% of sales) for the twelve months ended December 31, 2020, lower than US $ 560.1 million (28.8% of turnover) recorded for the twelve months ended December 31, 2019. Income totaled US $ 1,817.2 million for the past twelve months December 31, 2020, i.e. a decrease of 6.5% compared to US $ 1943.7 million reported for the past twelve months the 31st of December, 2019.
The Company also announced results for the fourth quarter of 2020, declaration of net income of US $ 67.0 million ($ 0.25 by ADR) compared to US $ 66.9 million ($ 0.25 by ADR) for the fourth quarter of 2019. Gross profit for the fourth quarter of 2020 reached US $ 132.5 million; about 3.9% less than the US $ 137.8 million recorded for the fourth quarter of 2019. Income 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 $ 472.2 million.
Managing Director of the SQM, Ricardo ramos, said: “The past year has been particularly positive from an operational point of view. Thanks to the efforts and dedication of all of our employees, we have been able to successfully implement effective protocols that have allowed us to maintain our production facilities in operation throughout the year. Despite the various restrictions put in place to prioritize the health of our workers, associates and neighboring communities, we were able to exceed all of our initial targets related to volumes of production, sustainability, cost and quality in all of our businesses. ”
He continued: “I would particularly like to highlight our lithium carbonate business, where our production exceeded 70,000 tonnes in 2020 and where all quality indices exceeded our targets for the year. Our production trends remain very positive, during the first two. In the month of 2021, we 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 tonnes by the end of this year and 180,000 tonnes by the end of 2023. Another milestone in 2020 has been compliance with the quantity, logistical capacity and strict quality control of solar salt shipments exceeding 160,000 tonnes. We believe we are ready to meet the market needs with annual volumes of over 200,000 metric tonnes of solar salts. “
He concluded by saying, “The fourth quarter was not only the quarter with the highest operating margin of the year, but it also set an all-time high for lithium sales volumes. We have sold over 25,000 metric tons and adhered to all logistics, production and quality restrictions, a clear sign that we are ready to continue to grow rapidly as one of the leading suppliers of lithium to the lithium industry. batteries. Our lithium sales volumes increased by over 40% over the year despite market growth of around 6%, proving that we have unquestionable competitive advantages related to costs and production capacity, high-quality logistics and production response. “
“We continue to diligently focus on our sustainability plan and are proud to announce that we are the first lithium mining company in the world to join the Responsible Mining Insurance Initiative (IRMA). For years, we’ve built a sustainable operation in an effort to protect the environment, our communities, and contribute to sustainable industries. Becoming a standby member of IRMA in our operations in the Salar de Atacama helps us consolidate best practices to address environmental, social and governance challenges, ”said Mr. Ramos.
IRMA certification is an initiative that promotes responsible mining practices, providing verification at a global level. Full membership should be achieved when we start 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 contribution to sustainable industries, which is reflected in our strong sustainability plan and human rights policy. .
This pending membership is part of our commitment to a high level of transparency, seeking public accountability for the goals we have set for ourselves related to environmental issues, sustainable operations and social responsibility. This membership is also linked to the role we play in the value chain of industries that are strategic for human development, including the revolution in the electric vehicle market and sustainable mobility.
SQM is a global company 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 various products for several industries essential to human progress, such as health, nutrition, renewable energies and technology through innovation and technological development. We aim to maintain our position as a world leader in the lithium, potassium nitrate, iodine and solar thermal salts markets by:
- Ensure access to the best assets related to our current businesses by expanding our global presence;
- Active search for attractive minerals allowing us to diversify our possibilities to replicate and extend our existing mining capacities;
- Strengthen our process of operational, logistical and commercial excellence from start to finish, while seeking to be a leader in costs; and
- Maintain a prudent financial policy that allows us to successfully weather 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 extend this culture through the attraction, retention and development of talent, while fostering an inclusive and diverse work environment that ensures the unique knowledge and innovation necessary to support our business. We strive to ensure safe and accident-free operations by promoting conduct that promotes the physical safety and psychological well-being of all who work directly and indirectly with the company.
We position ourselves as leaders in sustainability and we are committed to a sustainable future where we constantly work to responsibly manage natural resources, protect human rights, take care of the environment, close and trusting relationships with our neighboring communities and to create value. Within these communities, we support projects and activities focused on education, business development and the protection of the environment and historical heritage. We create value for our customers through established business models and the production and development of differentiated products that meet the specific needs of their industry and market, creating and constantly delivering sustainable improvement in the quality of life. We will continue to create value for all 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 by collaborating with our shareholders, employees, customers, suppliers and communities.
For more 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]
Tamara Rebolledo / [email protected] (Northern region)
Caution Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as: “anticipate”, “plan” , “Believe,” “estimate”, “expect”, “strategy”, “should”, “want” and similar references to future periods. Examples of forward-looking statements include, among others, statements that we do regarding the company’s capital expenditures, sources of finance, sustainability plan, business prospects, future economic performance, expected profitability, revenues, expenses or other financial items, cost synergies planned and growth of the product or service line.
Forward-looking statements are neither historical facts nor guarantees of future performance. Rather, they are estimates that reflect the best judgment of SQM management based on the information currently available. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are beyond our control and could cause actual results to differ materially from those stated in these statements, including our ability to successfully implement the Development Plan. Therefore, you should not rely on any of these forward-looking statements. Readers are encouraged to consult the documents filed by the SQM with the United States Securities and Exchange Commission, in particular the most recent annual report on Form 20-F, which identifies other significant risk factors that could make the actual results differ from those contained in the prospect. forward-looking statements. All forward-looking statements are based on information available to SQM as of the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise, unless the law requires it.
SOURCE Sociedad Quimica y Minera de Chile, SA (SQM)