The world's second-largest lithium producer also reported that total revenue fell 39.4% year-on-year to $4.528 billion.

Chilean company SQM, the world's second largest lithium producer, has posted losses of $404 million (€377 million) in 2024 compared to profits of $2.012 billion (€1.88 billion) in 2023. Although the company's sales volumes increased, it was unable to offset the sharp drop in lithium prices.

As reported on Wednesday, total revenue fell by 39.4% year-on-year to $4.528 billion (€4.232 billion). By business segment, lithium and derivatives revenue totaled $2.2413 billion (€2.095 billion), 49% of the total, experiencing a contraction of 56.7% compared to 2023.

Specialty plant nutrition revenues increased by 3%, while sales of iodine and derivatives increased by 8.5%. Meanwhile, potassium revenues fell by 3% and industrial chemicals revenues by 55.4%.

Gross operating profit (EBITDA) was 1,514 million dollars (1,415 million euros), which is 53% lower than the figure achieved by the company in the previous year.

SQM's general manager, Ricardo Ramos, has stated that they are very positive about the iodine business due to the stable growth they have been observing in its most relevant applications. "We are well positioned to face the challenges that lie ahead," he said.

FOURTH QUARTER BALANCE

The miner, which also makes fertilizers and industrial chemicals, posted net income of $120.1 million, or 42 cents per share, in the October-December period, compared with $205.9 million a year earlier. This was a 40.9% drop.

Analysts had expected net income of $130.95 million, or 52 cents per share, according to data compiled by LSEG.

Meanwhile, SQM's revenues of $1.07 billion were slightly above the $1 billion expected by analysts. However, the results were affected by lithium prices, which have fallen by more than 80% in two years.