SQM REPORTS EARNINGS FOR THE THIRD QUARTER OF 2022

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Sociedad Quimica y Minera de Chile, S.A. (SQM)

Nov 16, 2022, 20:16 ET

Highlights

SQM reported net income for the nine months ended September 30, 2022 of US$2,755.3 million compared to US$263.9 million for the same period the year before. Earnings per share totaled US$9.65 for the first nine months of 2022, higher than the US$0.92 reported for the first nine months of 2021.
Revenues for the nine months ended September 30, 2022, were US$7,577.0 million.
During the nine months ended September 30, 2022, contributions to public coffers surpassed US$3.6 billion.

SQM will hold a conference call to discuss these results on Thursday, November 17, at 10:00am ET (12:00pm Chile time).

Participant Dial-In (Toll Free): 1-844-763-8274

Participant International Dial-In: 1-412-717-9224

Webcast: https://services.choruscall.com/links/sqm221117.html

SANTIAGO, Chile, Nov. 16, 2022 /PRNewswire/ -- 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, 2022, of US$2,755.3 million (US$9.65 per ADR), an increase from US$263.9 million (US$0.92 per ADR) for the nine months ended September 30, 2021.

Gross profit reached US$4,094.8 million (54.0% of revenues) for the nine months ended September 30, 2022, higher than US$547.3 million (30.8% of revenues) recorded for the nine months ended September 30, 2021. Revenues totaled US$7,577.0 million for the nine months ended September 30, 2022, representing an increase of 326% compared to US$1,778.0 million reported for the nine months ended September 30, 2021.

The Company also announced earnings for the third quarter of 2022, reporting net income of US$1,099.9 million (US$3.85 per ADR) compared to US$106.1 million (US$0.37 per ADR) for the third quarter of 2021. Gross profit for the third quarter of 2022 reached US$1,632.7 million, higher than the US$224.8 million recorded for the third quarter of 2021. Revenues totaled US$2,958.3 million, an increase of approximately 347% compared to the third quarter of 2021, when revenues amounted to US$661.6 million.

SQM's Chief Executive Officer, Ricardo Ramos, stated: "We are very pleased with our results for the first nine months of the year. We have believed in the lithium market for many years, and as a result of this, we have invested heavily in R&D and have quickly expanded capacity. During the first nine months of the year, we were successfully able to surpass our internal production goals in the business and our sales volumes in the third quarter were the highest we have ever reported. In addition, lithium prices continued to increase throughout the third quarter. Our earnings reached record highs as a result of the positive market conditions mentioned above and the investments and risks SQM undertook over the past years, letting us contribute more than US$3.6 billion to the public coffers due our operations during the first nine months of the year, which includes more than US$2.3 billion related to the successful public-private alliance with CORFO."

He continued by saying, "Deepening our commitment with developing a sustainable lithium industry in Chile, during the third quarter we announced our plans related to the Salar Futuro project. We believe that this plan will be beneficial for all stakeholders, and we look forward to working with all of them to reduce our footprint further than our previously announced goals by using innovation, new technologies such as Advanced Evaporation Technologies (AET), Direct Lithium Extraction (DLE) and by increasing yields and using of sea water. The Salar Futuro project implies important technological challenges, and investments for more than US$1.5 billion, that would allow us to have, here in Chile, the most sustainable mining operation in the world. The initial tests allow us to be optimistic; these are fundamental changes in the technologies and processes currently. These plans could positively change the way lithium mining is done globally and that makes us very proud."

He added, "We continue to see strong signals regarding the future demand growth of lithium. This year we believe demand growth will be over 40% when compared to last year and for this reason we continue to invest in new projects. In September, we announced the purchase and development of a new plant in China, that will let us produce up to 30,000 metric tons of lithium hydroxide in China, from lithium sulfate coming from Chile. In addition to this, today, the board of Directors approved the first stages to expand our lithium hydroxide capacity from 40,000 metric ton to 100,000 metric ton in Chile. This expansion will require a total investment of an additional US$360 million to the previously announced capex plan and should be in full operation by 2025. Both projects will allow us to have the flexibility to respond to future market needs while keep on adding value to the Salar de Atacama operation."

He closed by saying, "Finally, during the past few months, we have signed long term contracts for both lithium and iodine, proving our commitment to our businesses and the mutual trust and collaboration that we have with the main players in the industries in which we operate".

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.

SOURCE Sociedad Quimica y Minera de Chile, S.A. (SQM)