Brazil Ultrapar Q3 net income up 13% year on year

07 November 2013 00:10  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazil-based fuel retailer and specialty chemicals producer Ultrapar posted a Q3 net income of Brazilian reais (R) 328m ($144m, €107m), up about 13% compared with R291m in the prior-year quarter.

Sales and services revenue for the quarter reached R15.9bn, up by about 13% from R14.1bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) totalled R765m, up almost 18% from R651m, the company said.

Ultrapar attributed the increase in net income to EBITDA growth in all its businesses that was driven by higher sales volumes in the company’s fuel distribution subsidiaries Ipiranga and Ultragaz and an increase in operating scale due to recent investments.

“We have reached our 29th consecutive quarter of EBITDA growth as a result of strong investments in our businesses,” said Ultrapar CEO Thilo Mannhardt. “We have solid foundations to continue this growth trajectory.”

The company’s specialty chemicals subsidiary, Oxiteno, posted Q3 sales of R867m, up by 9% year on year as a result of a 13% drop in the value of the Brazilian real and a 3% higher average dollar price.

This was partially offset by a 6% drop in sales volumes due to lower sales of glycols in the domestic and overseas markets as the company builds up stocks in preparation for a scheduled stoppage at the Camacari petrochemical complex in the fourth quarter.

Oxiteno is Brazil’s sole producer of ethylene oxide (EO), ethylene glycol (EG), ethanolamines, glycol ethers and methyl ethyl ketone (MEK). Ultrapar also owns liquid bulk storage firm Ultracargo.

($1 = €0.74, $1 = R2.28)

By: Simon West

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