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 $580.3-million for the three months ended June, with earnings per share at $2.03, below the $2.88 forecast by analysts polled by Refinitiv.
Revenue fell 21% from the prior year, landing at $2.05-billion for the quarter.
Sales volumes for lithium and derivatives totaled a record 43.1 thousand metric tons, 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 that 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 tons in light of start-up 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 that the company was set to hit production of 200 000 t to 210 000 t this year.
SQM has been holding 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.