The miner posted a net profit of US$580.3mil for the three months ended June, with earnings per share at US$2.03, below the US$2.88 forecast by analysts polled by Refinitiv. — Reuters
MEXICO CITY: Chile’s SQM, the world’s second-largest lithium producer, missed earning forecasts on Wednesday after reporting its second-quarter net profit dropped 32.5% from the year-ago period, pulled down by lower commodity prices.
The miner posted a net profit of US$580.3mil for the three months ended June, with earnings per share at US$2.03, below the US$2.88 forecast by analysts polled by Refinitiv.
Revenue fell 21% from the prior year, landing at US$2.05bil for the quarter. Sales volumes for lithium and derivatives totalled a record 43.1 thousand tonnes, up 26% on the year, though average selling prices dropped almost 37% from a year earlier.
“The positive impact of significantly higher sales volumes during the second quarter of 2023 was partially offset by lower average selling prices compared to the same period last year,” the company said in a statement.
It added it expected sales volumes in the second half of the year to surpass the first half but adjusted its 2023 production volume forecast to 180,000-190,000 tonnes in light of startup delays at its China refinery.
That marks around a 10% cut from an earlier forecast. CEO Ricardo Rodriguez said during an earnings call in March following its fourth-quarter results that the company was set to hit production of 200,000-210,000 tonnes this year.
SQM has been in talks with Chile’s state-run Codelco to discuss new lithium contracts, in the midst of a government push to strengthen its control on projects. — Reuters
