Brazil’s Ultrapar Q2 net earnings up 9% year on year

03 August 2012 20:23  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazilian fuel distributor and specialty chemicals producer Ultrapar reported on Friday second-quarter net earnings of reais (R) 234m ($114m, €93m), up 9% year on year.

The increase was due to growth in sales volumes and increased operating scale as a result of recent investments, Andre Covre, Ultrapar’s chief financial officer, said during an earnings call with investors.

Second-quarter sales stood at R13bn, up 7% year on year, as a result of revenues growth in all of Ultrapar’s subsidiary businesses.

Earnings before interest, tax, depreciation and amortisation (EBITDA) reached R579m, up 15% year on year due to earnings growth in the subsidiaries Oxiteno, Ipiranga and Ultracargo.

Ultrapar’s specialty chemical subsidiary, Oxiteno, posted sales volumes of 185,000 tonnes, up 21% year on year, with a 28% growth in the domestic market, due to increased sales of glycols and specialty chemicals, the company said.

In May, Ultrapar announced the acquisition through Oxiteno of Uruguayan specialty chemical firm American Chemical for $79m.

Ultrapar also acquired in May through storage subsidiary Ultracargo a liquid bulk terminal in northern Brazil for R160m.

“We remain alert to acquisition opportunities in all our businesses, aiming at further growth and value creation,” Covre said.

In addition to Oxiteno and Ultracargo, Ultrapar also operates in the fuel distribution sector through subsidiary companies Ipiranga and Ultragaz.

($1 = R2.05)
($1 = €0.82)

By: Simon West

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