Highlights
- SQM reported internet revenue for the twelve months ended December 31, 2021 of US$585.5 million . Earnings per share totaled US$2.05 for the twelve months of 2021, larger than the US$0.63 reported for the twelve months of 2020.
- Revenues throughout 2021 had been US$2,862.3 million .
- SQM will maintain a convention name to debate these outcomes on Thursday, March 3 at 10:00am ET ( 12:00pm Chile time).
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Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Inventory Alternate: SQM-B, SQM-A) right this moment reported internet revenue for the twelve months ended December 31, 2021 of US$585 .5 million ( US$2 .05 per ADR), a rise from US$164.5 million ( US$0.63 per ADR) reported for the twelve months ended December 31, 2020 .
Gross revenue reached US$1,090 .1 million (38.1% of revenues) for the twelve months ended December 31, 2021 , larger than US$482.9 million (26.6% of revenues) recorded for the twelve months ended December 31, 2020 . Revenues totaled US$2,862.3 million for the twelve months ended December 31, 2021 , representing a rise of 57.5% in comparison with US$1,817.2 million reported for the twelve months ended December 31, 2020 .
The Firm additionally introduced earnings for the fourth quarter of 2021, reporting internet revenue of US$321.6 million ( US$1 .13 per ADR) in comparison with US$67.0 million ( US$0.25 per ADR) for the fourth quarter of 2020. Gross revenue for the fourth quarter of 2021 reached US$542.8 million ; roughly 309.6% larger than the US$132.5 million recorded for the fourth quarter of 2020. Revenues for the fourth quarter of 2021 totaled US$1,084 .3 million, a rise of roughly 111.0% in comparison with the fourth quarter of 2020, when revenues amounted to US$513.8 million .
SQM‘s Chief Government Officer, Ricardo Ramos , said: “We’re very proud that manufacturing targets set for 2021 had been achieved, and in some circumstances even surpassed. In consequence, we had been capable of provide stronger than anticipated demand progress within the lithium, iodine, potassium chloride and potassium nitrate markets and in the end profit from larger market costs. Consequently, our internet revenue in 2021 was over thrice larger than internet revenue reported throughout 2020.”
He continued by saying, “We consider world lithium demand grew roughly 55% throughout 2021 when in comparison with 2020, primarily pushed by new demand for electrical autos. We consider electrical car demand greater than doubled globally final yr when in comparison with 2020 with China representing about 50% of whole world electrical autos gross sales final yr. Throughout 2021, market costs for lithium additionally grew as provide couldn’t sustain with the sturdy demand progress.”
“Demand retains on rising strongly, and we consider that the full demand will attain 1 million tons earlier than beforehand anticipated. Our present estimates for 2022 demand progress are over 30%. We don’t consider that provide shall be adequate to fulfill this progress in the end placing strain on market costs, reaching ranges by no means seen earlier than. We’re properly positioned to face these alternatives; our capability growth to succeed in 180,000 tons ought to be accomplished within the coming months, permitting us to extend our market share in 2022 and on account of the construction of our gross sales contracts, we must always see a big common worth enhance following the constructive worth development seen out there.”
Then he continued, “We need to proceed rising within the lithium market. The Board has simply authorized a further lithium capability plan in Chile , which can enable us to succeed in 210,000 metric tons of lithium carbonate and 40,000 metric tons of lithium hydroxide. We count on this new capability to be prepared subsequent yr with a complete CAPEX of US$250 million . This growth plan shall be met as we stay dedicated to our beforehand introduced purpose to scale back brine extraction and water utilization within the Salar de Atacama. Finishing an growth with these traits whereas maintaining capex comparatively low and lowering brine extraction, has change into attainable solely after years of analysis and improvement, yield enhancements, experience and naturally a powerful effort by our manufacturing and engineering groups, and we’re happy with that.”
“Within the iodine market, the post-Covid restoration was quicker than we initially anticipated; we consider the market grew about 12% in 2021 in comparison with 2020. This was mirrored in our gross sales volumes which elevated 27% to 12,300 metric tons, in 2021 when in comparison with 2020. It’s anticipated that our gross sales volumes will stay flat in 2022, however sturdy market situations make us consider that the constructive worth setting may stay.”
The CEO continued by saying, “Given the prevailing scarcity of potash and potassium-based fertilizers, we noticed a big enhance of world potassium costs. Through the fourth quarter 2021, costs elevated considerably in comparison with the third quarter of 2021 and the fourth quarter of final yr, 56% and 153%, respectively, reaching nearly US$685 per metric ton. This constructive development ought to proceed within the quick time period, and now have a constructive influence on the pricing setting within the SPN enterprise line in the course of the first half of 2022.”
The CEO closed by saying, “We’re engaged on lots of new endeavours at SQM, main progress initiatives and naturally elevated efforts associated to the sustainability of our operations.”
Sustainable Improvement
We submitted our first disclosure report underneath Local weather Disclosure Venture (CDP) and in our first collaborating within the rating, we had been categorized as B, which means that in response to CDP, administration is taking coordinated motion on local weather points. Associated to our IRMA (The Initiative for Accountable Mining Assurance) efforts, we’ve begun the exterior audit a part of the method. We’re formally in section 1 of the method, seeking to start Part 2 on website in coming months.
In current months, our environmental administration system in our Port at Tocopilla was licensed underneath ISO 14,001. We’re working to certify in our Carmen Lithium services, Salar de Atacama and in Coya Sur throughout this yr. Moreover, we’re making progress in certifying our Occupational Well being and Security Administration System underneath ISO 45,001.
As a part of Race to Zero initiative and our purpose to scale back our logistics carbon footprint, we’ve established an bold agenda to develop excessive tonnage transportation through electrical vehicles. This agenda considers a number of pilots in 2022 of various vehicles that may carry out checks in our operations. This can enable us to accumulate the suitable data and to speed up the adoption of this new know-how with the suitable technical help and competitiveness.
About SQM
SQM is a world firm that’s listed on the New York Inventory Alternate and the Santiago Inventory Alternate (NYSE: SQM; Santiago Inventory Alternate: SQM-B, SQM-A). SQM develops and produces numerous merchandise for a number of industries important for human progress, similar to well being, diet, renewable power and know-how via innovation and technological improvement. We purpose to take care of our main world place within the lithium, potassium nitrate, iodine and thermo-solar salts markets by:
- Guaranteeing entry to the very best belongings associated to our present enterprise strains by increasing our world presence;
- Actively trying to find engaging minerals permitting us diversification alternatives to copy and broaden our current mining capacities;
- Strengthening our operational, logistical and business excellence course of from starting to finish, whereas seeking to be a value chief; and
- Sustaining a conservative monetary coverage which permits us to efficiently endure financial cycles that might influence the markets during which we promote.
We’re a dynamic firm. In pursuit of our targets, we count on to accumulate and develop initiatives and pursuits which might be in step with our current and new companies, both alone or with three way partnership companions. We may additionally divest, spin-off or sell-down pursuits that we’ve acquired to deploy funds for different investments or different functions in pursuit of our targets to regulate threat or diversify our asset base.
We’re an organization constructed and managed by a tradition primarily based on excellence, security, sustainability and integrity. We work on daily basis to broaden this tradition via the attraction, retention and improvement of expertise as properly encouraging an inclusive and numerous work setting making certain the distinctive data and innovation wanted to maintain our enterprise. We try for protected and accident-free operations by selling conduct that favors the bodily security and psychological well-being of everybody who works instantly and not directly with the Firm.
We place ourselves as a pacesetter in sustainability and decide to a sustainable future the place we continuously work to responsibly handle pure assets, defend human rights, take care of the setting, kind shut and trusting relationships with our neighboring communities and create worth. Inside these communities, we help initiatives and actions with a deal with schooling, enterprise improvement, and safety of the setting and historic heritage. We create worth for our purchasers via established business fashions and the manufacturing and improvement of differentiated merchandise that reply to their business and market particular wants, continuously creating and offering a sustainable enchancment within the high quality of life. We are going to proceed to create worth for all of our stakeholders via accountable administration of pure assets, sustainable growth initiatives and enchancment of our current operations, with a deal with minimizing our environmental impacts by lowering our carbon, power and water footprints and dealing along with our shareholders, staff, prospects, suppliers and communities.
For additional data, 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
Cautionary Be aware Concerning Ahead-Trying Statements
This information launch incorporates “forward-looking statements” throughout the which means of the protected harbor provisions of the U.S. Personal Securities Litigation Reform Act of 1995. Ahead-looking statements may be recognized by phrases similar to: “anticipate,” “plan,” “consider,” “estimate,” “count on,” “technique,” “ought to,” “will” and related references to future durations. Examples of forward-looking statements embrace, amongst others, statements we make in regards to the Firm’s capital expenditures, financing sources, Sustainable Improvement Plan, enterprise and demand outlook, future financial efficiency, anticipated gross sales volumes, profitability, revenues, bills, or different monetary objects, anticipated value synergies and services or products line progress.
Ahead-looking statements are neither historic details nor assurances of future efficiency. As an alternative, they’re estimates that replicate the very best judgment of SQM administration primarily based on presently obtainable data. As a result of forward-looking statements relate to the longer term, they contain quite a lot of dangers, uncertainties and different components which might be outdoors of our management and will trigger precise outcomes to vary materially from these said in such statements, together with our means to efficiently implement the Sustainable Improvement Plan. Due to this fact, you shouldn’t depend on any of those forward-looking statements. Readers are referred to the paperwork filed by SQM with america Securities and Alternate Fee, together with the latest annual report on Kind 20-F, which identifies different necessary threat components that might trigger precise outcomes to vary from these contained within the forward-looking statements. All forward-looking statements are primarily based on data obtainable to SQM on the date hereof and SQM assumes no obligation to replace such statements, whether or not on account of new data, future developments or in any other case, besides as required by regulation.
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SOURCE Sociedad Quimica y Minera de Chile , S.A. (SQM)
