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SQM's Q2 earnings drop YOY on lower lithium prices, potassium volumes

Sociedad Quimica y Minera de Chile SA, or SQM, said Aug. 21 that net income in the second quarter dropped to US$70.2 million from US$133.9 million a year ago.

Revenue in the three months fell 22.6% year over year to US$494.1 million.

CEO Ricardo Ramos said earnings were mainly hurt by lower lithium sale prices, lower potassium chloride volumes and the lack of solar salt sales, partly compensated by higher lithium sales volumes and higher iodine prices.

Ramos said SQM expects higher lithium sales volumes in the second half and for sales to rise between 30% and 40% in 2020.

"We are expecting higher sales volumes in the potassium chloride business line this year than previously anticipated, reaching close to 600,000 [tonnes], this implies significantly higher sales volumes during the second half of the year," Ramos said.

The company said first-half earnings slipped to US$150.7 million, or 57 U.S. cents per share, from US$247.7 million, or 94 cents per share, a year ago.

Revenue for the half dropped 13.7% to US$998.4 million from US$1.16 billion in the prior year.