SANTIAGO - Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) reported third-quarter earnings that fell short of analyst expectations, while revenue met estimates. The Chilean lithium producer saw its stock rise 1% following the release.
SQM posted adjusted earnings per share of $0.46 for the third quarter, missing the analyst consensus of $0.63 by $0.17. Revenue came in at $1.08 billion, in line with estimates.
The company reported total revenues of $3.46 billion for the first nine months of 2024, down 43.9% compared to $6.16 billion in the same period last year. Net loss for the nine-month period was $524.5 million or -$1.84 per share, compared to net income of $1.81 billion or $6.33 per share in the prior-year period.
SQM saw solid sales volume growth across its lithium, iodine and fertilizer businesses in Q3. Lithium sales volumes increased 18% YoY to over 51,000 metric tons, demonstrating strong market demand. However, average realized lithium prices fell 24% compared to Q2 2024 due to oversupply pressures.
"Although demand continues to grow at a strong pace, mainly driven by strong EV sales growth in China, we continue to see the prices pressured by an oversupply that persists despite the curtailment announcement we have seen over the past few weeks," said CEO Ricardo Ramos.
The company's specialty plant nutrition volumes grew over 20% YoY, while iodine demand remained robust, leading to increased sales volumes and revenues versus last year.
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