SQM Reports Earnings For The First Quarter Of 2017

SANTIAGO, Chile, May 17, 2017 /PRNewswire/ --

Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported earnings today for the three months ended March 31, 2017 of US$103.2 million (US$0.39 per ADR), an increase from $US58.5 million (US$0.22 per ADR) reported for the three months ended March 31, 2016. Gross profit reached US$177.9 million (33.5% of revenues) for the three months ended March 31, 2017, higher than US$113.6 million (29.0% of revenues) recorded for the three months ended March 31, 2016. Revenues totaled US$531.9 million for the three months ended March 31, 2017, representing an increase of 35.8% compared to US$391.8 million reported for the three months ended March 31, 2016.

SQM's Chief Executive Officer, Patricio de Solminihac, stated, "Strong sales volumes during the first quarter contributed to our strong results; our sales volumes increased in every business line when compared to the first quarter of 2016. Our strategy to increase iodine sales volumes is yielding results; we reported the highest quarterly sales volumes of iodine and derivatives than we have seen in over five years, and we believe our volume growth could surpass 15% in 2017 when compared to 2016.

"In the potassium business line, sales volumes increased almost 40% compared to the first quarter of 2016. However, as previously reported, we still expect lower sales volumes this year. Even though prices this quarter were lower than prices seen last year in the potassium and SPN business lines, our expectations for this year are better now than how they were a few months ago. Furthermore, we saw solar salt sales volumes reach approximately 45.000 MT during the first quarter, boosting revenues in the industrial chemical business line."

He continued by saying, "So far in 2017, we have seen stronger lithium demand growth than we previously expected, and now estimate that demand growth should reach approximately 14% this year. Under this new scenario, we believe that for the rest of the year the market could remain tight. To meet this growing demand, and to take advantage of strong prices in the lithium market, we have decided to expand of our lithium carbonate capacity in Chile from 48,000 to 63,000 MT/year. We estimate that this expansion will be completed during the second half of 2018, and will require approximately US$50 million of capital expenditure."

About SQM

SQM is an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals.  Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 110 countries. SQM's development strategy aims to maintain and strengthen the Company's position in each of its businesses.

The leadership strategy is based on the Company's competitive advantages and on the sustainable growth of the different markets in which it participates. SQM's main competitive advantages in its different businesses include:

• Low production costs based on vast and high quality natural resources;
• Know-how and its own technological developments in its various production processes;
• Logistics infrastructure and high production levels that allow SQM to have low distribution costs;
• High market share in all its core products;
• International sales network with offices in 20 countries and sales in over 110 countries;
• Synergies from the production of multiple products that are obtained from the same two natural resources;
• Continuous new product development according to the specific needs of its different customers;
• Conservative and solid financial position.

For further information, contact:

Gerardo Illanes 56-2-24252022 / [email protected]
Kelly O'Brien 56-2-24252074 / [email protected] 
Irina Axenova 56-2-24252280 / [email protected]  

For media inquiries, contact:

Carolina García Huidobro / [email protected]   
Alvaro Cifuentes / [email protected]
Tamara Rebolledo / [email protected]  (Northern Region)

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by words such as: "anticipate," "plan," "believe," "estimate," "expect," "strategy," "should," "will" and similar references to future periods.  Examples of forward-looking statements include, among others, statements we make concerning the Company's business outlook, future economic performance, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth.

Forward-looking statements are neither historical facts nor assurances of future performance.  Instead, they are estimates that reflect the best judgment of SQM management based on currently available information.  Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements. Therefore, you should not rely on any of these forward-looking statements.  Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, specifically the most recent annual report on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise.

SOURCE Sociedad Quimica y Minera de Chile S.A. (SQM)