Sociedad Química y Minera de Chile SA (SQM) reported first-quarter net income of US$58.5 million (US$0.22 per ADR), a decrease from the year-ago $71.7 million (US$0.27 per ADR). Revenues were $391.8 million up from the year-ago $387.5 million.
“During the first quarter of 2016, as anticipated, the downward trend in iodine prices and the weakness in potash prices continued, impacting our margins,” said CEO Patricio de Solminihac. “Potash sales volumes were higher this quarter compared to the first quarter of last year, which helped to offset the impact on revenues, although adverse weather conditions at the port caused some shipments to be postponed to the second quarter. We believe we are on track to see a recovery in our potash volumes for the full year, returning to levels similar to those reported in 2014. In fact, we expect to see higher sales volumes across all of our business lines for the full year, although margins will continue to reflect lower iodine and potash prices.”
“Pricing in the specialty plant nutrition business has been more stable than potash pricing, and our leading position in the potassium nitrate market has helped us to keep revenues stable in the face of uncertainty in the potash market,” he added. “The best news of the quarter has been our lithium business, where we saw significant revenue growth. In response to strong global demand for lithium, we are working to deliver more volumes, and prices have also increased.”