SQM Inc. reported second-quarter net income of $580.2 million, down 32% from the year-ago $859.3 million, while revenues decreased 21%, to $2.05 billion from the year-ago $2.6 billion.
“Our second-quarter 2023 results were lower when compared to the same period last year primarily due to the lower realized average sales prices in the lithium business,” said CEO Ricardo Ramos. “While lithium sales volumes showed a significant recovery during this quarter, reaching historical high levels, lower spot prices especially in China in the beginning of the second quarter had a negative impact on reported sales and net income. We continue to see positive dynamic in (the) lithium market supported by strong EV sales volumes in different markets and expect the global lithium demand growth to reach at least 20% this year.”
SQM said second-quarter lithium sales volumes surpassed 43,000 mt, more than 26% higher than the year-ago quarter and 33% higher than the first quarter. Realized average sales prices, however, decreased almost 37% year-over-year and close to 33% compared to the first quarter.
Specialty Plant Nutrition (SPN) saw a second-quarter drop in both volumes and prices, though the company saw some demand recovery compared to the first quarter. However, due to lower first-quarter demand and some reduced agricultural activity as a result of the impact of climate conditions in various markets, SQM expects annual SPN demand growth to be flat-to-negative in 2023.
Second-quarter SPN volumes were off 4%, to 221,700 mt from the year-ago 230,100 mt, while revenues fell 25%, to $247.5 million from $330.3 million. Potassium nitrate-based volumes were off 11%, while Specialty Blends saw a volume increase of 8%.
Second-quarter sales volumes and prices were down for Potassium Chloride and Potassium Sulfate (MOP/SOP). Average sales prices were off 48% year-over-year and almost 16% when compared to the first quarter. However, SQM believes the price decrease could have a positive impact on global potash market demand, resulting in a growth of approximately 10% this year compared to 2022. It expects potassium sales volumes could surpass 500,000 mt in 2023.
Second-quarter MOP/SOP volumes dropped 30%, to 124,300 mt from the year-ago 177,600 mt, while revenues fell 64%, to $66.2 million from $182.4 million.
Company-wide, SQM reported six-month net income of $1.33 billion, down 20% from the year-ago $1.66 billion. Six-month revenues were off 7%, to $4.32 billion from $4.62 billion.
Six-month SPN volumes were down 12%, to 389,800 mt from the year-ago 440,800 mt, while revenues dropped 23%, to $468.4 million from $605.6 million. Potassium nitrate-based products saw the biggest drop at 19%, while Specialty Blends were down 6%.
Six-month
MOP/SOP volumes were off 18%, to 262,800 mt from the year-ago 319,300 mt, while
revenues were off 48%, to $153.1 million from $296.5 million.