SQM Inc., Santiago, reported flat fourth-quarter net income of $67 million ($0.25 per share) on revenues of $513.8 million, nearly flat with the year-ago $66.9 million ($0.25 per share) and $472.2 million, respectively. Gross profit was off at $132.5 million from $137.8 million.
Despite the flat income, fourth-quarter volumes were up 134 percent for lithium, 71 percent for MOP/SOP, and 28 percent for industrial nitrates. Specialty plant nutrition volumes were up just 4 percent, while iodine was off 30 percent.
SQM said the quarter set a quarterly record for lithium sales volumes. The company said it sold 25,800 mt, up 50 percent from the third quarter; year-ago sales volumes were 11,000 mt. SQM said volumes grew 43 percent for the year, despite the market only growing 6 percent. The company said 2020 lithium production surpassed 70,000 mt in 2020 and they expect more than 80,000 mt in 2021. SQM expansion plans target 180,000 mt/y of production by the end of 2023.
SQM said fourth-quarter lithium prices were stable around $5,300/mt, and it believes this could be the bottom of the decreasing pricing trend and that prices could be higher in first-half 2021.
Fourth-quarter MOP/SOP volumes were 244,600 mt, up 71 percent from the year-ago 143,000 mt. Revenues were up 33 percent, to $66.3 million from $49.9 million.
Specialty Plant Nutrition (SPN) segment volumes were up 4 percent in the fourth quarter, to 265,200 mt from 254,100 mt, with specialty blends seeing an 18 percent uptick to 77,800 mt from 65,800 mt. Potassium nitrate-based volumes were up 1 percent, to 136,700 mt from 135,900 mt. Total SPN revenues were up 4 percent, to $179.1 million from the year-ago $172.8 million.
Full-year SPN volumes were off 1 percent, to 1.036 million mt from 2019’s 1.042 million mt. While specialty blends were up 14 percent to 271,300 mt from 238,900 mt, potassium nitrate-based volumes were down 7 percent, to 575,200 mt from 617,400 mt.
SQM said it believes overall SPN market growth was 5 percent in 2020, and it expects to see the same rate in 2021. It said fourth-quarter pricing was up 4 percent over the third quarter.
Full-year net income was down at $164.5 million ($0.63 per share) on revenues of $1.82 billion from the year-ago $278.1 million ($1.06 per share) and $1.94 billion, respectively. The company said net income was affected by a settlement fee related to a class action lawsuit against the company in the U.S. which had a one-time before tax effect of $62.5 million (GM Nov. 13, 2020).
Full-year gross profit was $482.9 million, down from 2019’s $560.1 million. For the year, segment contribution to consolidated gross profit included: Lithium 18 percent, SPN 34 percent, Iodine 34 percent, MOP/SOP 5 percent and Industrial Chemicals 9 percent.