SQM Reports Q1 2024 Net Loss of $869.5M on Lower Revenues

TL;DR

SQM Q1 earnings are a bloodbath: $869.5M net loss vs. $749.9M profit last year. Revenues cut in half.

AI Summary

Chemical & Mining Co of Chile Inc. (SQM) reported total revenues of US$1,084.5 million for the three months ended March 31, 2024, a decrease from US$2,263.9 million in the same period last year. The company experienced a net loss of US$869.5 million, or US$3.04 per share, for the first quarter of 2024, contrasting with a net income of US$749.9 million in the prior year's first quarter.

Why It Matters

This significant drop in revenue and shift to a net loss for SQM in Q1 2024 indicates a challenging market environment for its products, potentially impacting investor sentiment and future production plans.

Risk Assessment

Risk Level: medium — The substantial net loss and revenue decline in the first quarter suggest significant operational or market challenges that could persist.

Key Numbers

• US$1,084.5 million — Q1 2024 Revenues (Significant decrease from the prior year's Q1.)
• (US$869.5) million — Q1 2024 Net Loss (Shift from a substantial profit in Q1 2023.)
• US$3.04 — Q1 2024 Loss Per Share (Reflects the net loss for the period.)

Key Players & Entities

• CHEMICAL & MINING CO OF CHILE INC (company) — Filer
• SQM (company) — Company name abbreviation
• US$1,084.5 million (dollar_amount) — Q1 2024 total revenues
• US$2,263.9 million (dollar_amount) — Q1 2023 total revenues
• US$869.5 million (dollar_amount) — Q1 2024 net loss
• US$3.04 (dollar_amount) — Q1 2024 loss per share
• US$749.9 million (dollar_amount) — Q1 2023 net income
• March 31, 2024 (date) — End of reporting period

FAQ

Key Financial Figures

• $1,084.5 million — three months ended March 31, 2024 of US$1,084.5 million compared to total revenues of US$2,263.
• $2,263.9 million — million compared to total revenues of US$2,263.9 million for the same period last year. Net lo
• $869.5 — three months ended March 31, 2024 of (US$869.5) million or (US$3.04) per share, compar
• $3.04 — ch 31, 2024 of (US$869.5) million or (US$3.04) per share, compared to net income (2)
• $749.9 m — share, compared to net income (2) of US$749.9 million, US$2.63 per share for the same p
• $2.63 — o net income (2) of US$749.9 million, US$2.63 per share for the same period last year
• $228.1 million — months ended March 31, 2024, totaled US$228.1 million (US$0.80 per share), representing a dec
• $0.80 — h 31, 2024, totaled US$228.1 million (US$0.80 per share), representing a decrease of
• $749.9 million — se of approximately 69.6% compared to US$749.9 million (US$2.63 per share). Gross profit (3)
• $368.5 million — per share). Gross profit (3) reached US$368.5 million (34.0% of revenues) for the three month
• $1,065.6 million — nths ended March 31, 2024, lower than US$1,065.6 million (47.1% of revenues) recorded for the th
• $1,097.6 million — March 31, 2024, in a total amount of US$1,097.6 million. For more detail, please refer to Note
• $350 million — d for a total amount of approximately US$350 million (SQM's share). We look forward to worki
• $1.3 b — l capex for 2024 is expected to reach US$1.3 billion, including the capex associated w
• $70 m — capacity expansions of approximately US$70 million, Dixin plant acquisition of appro

Filing Documents

• a6-k_1q2024earningsrelease.htm (6-K) — 188KB
• sqm.jpg (GRAPHIC) — 6KB
• 0000909037-24-000041.txt ( ) — 197KB

From the Filing

Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of May 2024. Commission File Number 33-65728 CHEMICAL AND MINING COMPANY OF CHILE INC. (Translation of registrant's name into English) El Trovador 4285, Santiago, Chile (562) 2425-2000 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F_ X _ Form 40-F For Immediate Release SQM REPORTS EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2024 Highlights SQM reported total revenues for the three months ended March 31, 2024 of US$1,084.5 million compared to total revenues of US$2,263.9 million for the same period last year. Net loss (1),(2) for the three months ended March 31, 2024 of (US$869.5) million or (US$3.04) per share, compared to net income (2) of US$749.9 million, US$2.63 per share for the same period last year. Over 30% year-on-year higher sales volumes in lithium business, surpassing 43,000 metric tons in 1Q2024. Revised and increased FY2024 lithium sales volumes guidance. Record-high quarterly sales volumes in iodine business, over 3,700 metric tons in 1Q2024. Concluded the acquisition of Andover lithium project in Western Australia. Successfully completed the ramp-up of the Dixin lithium hydroxide conversion facility in Sichuan, China, with a nominal capacity of 20,000 metric tons. SQM will hold a conference call to discuss these results on Thursday, May 23, 2024 at 1200pm ET (1200pm Chile time). Participant Dial-In (Toll Free) 1-844-282-4852 Participant International Dial-In 1-412-317-5626 Webcast httpsevent.choruscall.commediaframewebcast.htmlwebcastidqmUdFzpU Santiago, Chile. May 22, 2024. - Sociedad Qumica y Minera de Chile S.A. (SQM) (NYSE SQM Santiago Stock Exchange SQM-B, SQM-A) reported today net loss (1),(2) for the three months ended March 31, 2024, of (US$869.5) million, (US$3.04) per share. Excluding the net effect of accounting adjustments for the payments of the specific tax on mining activities for the exploitation of lithium, the net income (2) for the three months ended March 31, 2024, totaled US$228.1 million (US$0.80 per share), representing a decrease of approximately 69.6% compared to US$749.9 million (US$2.63 per share). Gross profit (3) reached US$368.5 million (34.0% of revenues) for the three months ended March 31, 2024, lower than US$1,065.6 million (47.1% of revenues) recorded for the three months ended March 31, 2023. Revenues totaled US$1,084.5 million for the three months ended March 31, 2024, representing a decrease of approximately 52.1% compared to US$2,263.9 million reported for the three months ended March 31, 2023. SQM's Chief Executive Officer, Ricardo Ramos, stated, "We are pleased with the positive year-on-year growth in sales volumes across all of our major businesses. During the first quarter of 2024, we delivered record-high quarterly sales volumes in the iodine business, almost 9% higher when compared to the same period last year. Sales volumes in our specialty nutrition and potassium business lines were approximately 20% higher year-on-year, while lithium sales volumes were over 30% higher during the first quarter of 2024 compared to the same period last year. This growth was offset by lower year-on-year realized average sales prices in these business lines as a result of lower market prices during the first quarter of 2024." He continued by saying, "We believe that the strong demand growth in lithium market seen since the beginning of the year could continue for the remainder of the year, with total lithium demand surpassing 1.1 million metric tons during 2024. Given this positive trend in demand growth, especially in China which accounts for almost 75% of global lithium demand, and our updated sales volumes outlook for the year, we believe that our sales volumes could reach 200,000 metric tons in 2024." Mr. Ramos added, "We continue with our growth plans in Chile and abroad. Our iodine and nitrates expansion project in Pampa Blanca is progressing successfully and we expect to deliver 1,300 metric tons of iodine from this new operation in (1) Includes the net effect of accounting adjustments for the payments of the specific tax on mining activities for the exploitation of lithium as of March 31, 2024, in a total amount of US$1,097.6 million. For more detail, please refer to Note (1) to this Earnings release. SQM S.A. 1Q2024 Earnings release 1 2024. In the recent months, we began the construction of a seawater pipeline which will deliver seawater to our operations, allowing us to expand our production capacity and supply freshwater to our neighboring communities. In lithium business, as detailed below, we have completed the new expansion of our lithium carbonate facility in Chile, r

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