UPDATE 1-Chile's SQM shares leap after earnings beat, Uralkali accident
(Adds comments on Russian mine production halt, updates share movement)
SANTIAGO Nov 19 (Reuters) - Shares in fertilizer group SQM rose 5.6 percent on Wednesday, fueled by a third-quarter earnings beat and expectations of higher potash prices following a mining production halt at Russian producer Uralkali.
SQM on Tuesday evening reported a stronger-than-expected 4 percent rise in its earnings before interest, taxes, depreciation and amortization.
The company also reported profit margins rising to nearly 40 percent thanks to a weaker Chilean peso and greater cost efficiencies.
SQM's NASDAQ-quoted ADRs leapt 4.7 percent.
The shares were also propelled upwards, alongside those of other major potash producers, after a brine inflow led to a suspension in operations at an Uralkali mine in Russia, a development that could reduce global supplies of the key fertilizer ingredient. .
That could counter weaker demand in 2015, said analysts at BanChile Inversiones.
BICE Inversiones, meanwhile, pointed to the company's stable results despite a recent fall in iodine and potash prices, highlighting "SQM's high income diversification and its ability to continue reducing costs."
However, both brokerages maintained their 'sell' on the stock, citing an uncertain outlook for prices and a competitive market.
(Editing by W Simon)
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