Brazil Ultrapar Q2 net income up 21% year on year

01 August 2013 03:04  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazilian petrochemical producer and fuel distributor Ultrapar posted on Wednesday a second-quarter net income of Brazilian reais (R) 284m ($124.6m, €93.7m), up by 21% from R234m in the same period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) in the April-June period increased by 22% to R706m from R577m, marking the 28th consecutive quarter of EBITDA growth, the company said.

Sales and services revenues for the quarter stood at R15.2bn, an increase of about 17% compared with revenues of R13.0bn in the same quarter last year.

Ultrapar attributed the earnings to a growth in sales volumes at the company’s specialty chemicals and fuel distribution divisions, and increased operating scale as a result of recent investments.

“We are pleased to complete seven consecutive years of EBITDA growth, achieved through different economic cycles,” said Ultrapar CEO Thilo Mannhardt.

“This growth was enabled by investments in the strengthening and development of our businesses and by a corporate governance structure designed towards the alignment of interests and value creation,” he added.

Ultrapar’s specialty chemicals subsidiary, Oxiteno, posted second-quarter sales volumes of 207,000 tonnes, a 12% increase compared with the same quarter last year, partly because of capacity expansion following the acquisition of Uruguayan-based American Chemical.

Oxiteno’s revenues totalled R821m, up by 13% year on year, while EBITDA stood at R107m, an increase of 8%, the company said.

Oxiteno is Brazil’s sole producer of ethylene oxide (EO), ethylene glycol (EG), ethanolamines, glycol ethers and methyl ethyl ketone (MEK).

Ultrapar also owns fuel distributors Ipiranga and Ultragaz, and liquid bulk storage firm Ultracargo.

($1 = R2.28, $1 = €0.75)

By: Simon West

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