Brazil Ultrapar Q4 net earnings fall 10% on fewer asset sales

15 February 2012 23:35  [Source: ICIS news]

HOUSTON (ICIS)--Brazil-based specialty chemicals producer and fuel retailer Ultrapar reported on Wednesday that net earnings were reais (R) 221m ($128m, €97m), down 10% year on year because the company sold fewer assets.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) reached R505m, up 9% from R465m reported for the same time last year.

Fourth-quarter net sales were R1.28bn, up 13% from R1.23bn reported for 2010.

For all of 2011, Ultrapar's net earnings were R855m, up 12% from R765m reported for 2010. EBITDA reached R2.01bn, up 13% from R1.78bn reported for 2010.

Ultrapar attributed the increase to higher earnings from its fuel retailer, Ipiranga; its specialty chemicals company, Oxiteno; and Ultracargo, its liquid-bulk storage firm.

By segment, Oxiteno reported a fourth quarter EBITDA of R80m, up 47% year on year. Oxiteno attributed the increase to higher margins, a weaker real and higher sales volumes.

Oxiteno's sales volumes reached 179,000 tonnes in the fourth quarter, up 5% year on year. Domestic sales rose 15% and international sales fell 16%.

For all of 2011, Oxiteno's EBITDA reached R261m, up 8% year on year.

Oxiteno produces ethanolamines, ethoxylates, ethylene glycols (EG), polyether polyols and methyl ethyl ketone (MEK).

Ipiranga reported fourth-quarter EBITDA of R358m, up 11% year on year. The figure excludes R16m that Ipiranga spent as part of a project to convert Texaco service stations to the Ipiranga brand.

Ipiranga attributed the increase in earnings to investments the company made to expand its network. In addition, the Brazilian economy continued to grow, and more automobiles are on the nation's roads.

For all of 2011, Ipiranga's EBITDA reached R1.33bn, up 24% year on year.

($1 = €0.76)
($1 = R1.72)

By: Al Greenwood
+1 713 525 2645

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