Sociedad Quimica y Minera de Chile SA (SQM) reported 2015 full-year net income of $213.2 million ($0.81 per share) on revenues of $1.73 billion, down from 2014’s $296.4 million ($1.13 per share) and $2 billion, respectively. Results from 2015 include a one-time write-off of $57.7 million related to stopping the operations of the Pedro de Valdiva mines (GM Nov. 23, 2015).
“During 2015, we faced many challenges, including lower prices and lower volumes impacting some of our business lines,’ said SQM CEO Patricio de Solminihac. “As mentioned previously, our sales volumes in both the Specialty Plant Nutrition and Potassium segments were lower as a result of delays during the first half of 2015. We were not able to fully compensate for those delays during the second half of the year. In addition, prices have fallen significantly in the past 12 months in the potassium chloride and iodine markets.” He said the restructuring of nitrate and iodine assets in 2015 will improve SQM’s competitive position. Lithium prices, up over 10 percent, partially offset the lower prices for other commodities.
Specialty Plant Nutrition revenues for 2015 were $651.2 million, down from 2014’s $708 million. While sales volumes of field fertilizers decreased, SQM said water-soluble fertilizer sales were up 5 percent. Overall, SPN average prices were lower at $784/mt. The company expects the prices will likely be lower in 2016. Within the segment, potassium nitrate and sodium potassium nitrate volumes were down 7 percent, to 493,600 mt from 531,600 mt and specialty blends to 203,900 mt from 228,000 mt. Other SPNs, which includes trading of other specialty fertilizers, was up at 107,500 mt from 102,500 st, while sodium nitrate was up at 26,000 mt from 15,800 mt.
In the Potassium Chloride/Potassium Sulfate segment, revenues were down 26 percent, to $430.2 million from $584.3 million, and volumes 20 percent to 1.24 million mt from 1.56 million mt. The combined average price for the unit was
$346/mt, down 7.7 percent from the 2014 price, with fourth-quarter prices some 27 percent lower than year-ago levels. SQM expects 2016 sales volumes for potassium levels to increase back to 2014 levels, with prices lower than those for 2015.
SQM fourth-quarter net income was $44.6 million ($0.17 per share) on revenues of $411.3 million, down from the year-ago $78 million ($0.30 per share) and $491.4 million, respectively.