Brazil Ultrapar Q1 income rises 29% on higher sales

16 May 2013 03:05  [Source: ICIS news]

HOUSTON (ICIS)--Brazil-based fuel retailer and specialty chemicals producer Ultrapar posted on Wednesday a first-quarter net income of reais (R) 246.5m ($121.4m, €93.5m), up by 29% from R191.7m in the same period last year because of higher revenue.

First-quarter net revenue was R13.6bn, up by 9.7% from R12.4bn in the same period last year, Ultrapar said.

The increase reflected growth in Ultrapar's fuel-retailing subsidiary, Ipiranga. The company posted R432m in earnings before interest, tax, depreciation and amortisation (EBITDA), up by 28% year on year.

Ipiranga's earnings rose in part because Brazil's vehicle fleet continues to expand, Ultrapar said, adding that Ipiranga's network grew.

The company's specialty chemicals subsidiary, Oxiteno, posted a first-quarter operating income of R48.2m, up by 30% from R37.1m in the same period last year.

Oxiteno's first-quarter net revenue was R754.5m, up by 17% from R646.7m posted for the same time last year.

Oxiteno's first-quarter sales volume reached 198,000 tonnes, up by 6% year on year.

Ultrapar attributed the increase to higher specialty sales for the home and personal care segments. Also, in November, Oxiteno had acquired a specialty chemicals company in Uruguay.

The weaker Brazilian real also boosted earnings, Ultrapar said.

Oxiteno is the only Brazilian producer of ethylene oxide (EO), ethylene glycol (EG), ethanolamines, glycol ethers and methyl ethyl ketone (MEK).

Ultrapar also owns the fuel distributor Ultragaz as well as Ultracargo, a liquid bulk storage subsidiary.

($1 = €0.77, $1 = R2.03)

By: Al Greenwood
+1 713 525 2645

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