4Q23 Earnings Presentation
March 7th, 2024
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DISCLAIMER
This presentation may include market outlooks and forward-looking statements, which are based on the beliefs and assumptions of Empresas Copec's management and on information currently available to the Company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Empresas Copec and could cause results to differ materially from those expressed in such forward-looking statements. This presentation contains certain performance measures that have
been adjusted with respect to IFRS definitions, such as "EBITDA".
- CONSOLIDATED RESULTS
- REVIEW BY BUSINESS DIVISION
- HIGHLIGHTS OF THE QUARTER IV. Q&A
Highlights | and panel prices, and lower unit sale costs for all fibers. |
Higher EBITDA QoQ explained by Arauco, due to higher pulp |
FORESTRY | ENERGY | PROJECTS AND OTHER |
EBITDA increased QoQ and | Higher EBITDA QoQ and YoY | DEVELOPMENTS |
decreased YoY | ||
Lower unit selling cost for all fibers, | Favorable inventory revaluation, | Agreement for the sale of forestry |
along with higher pulp and panel | volumes and industrial margin QoQ. | assets in Brazil for US$1.16 billion |
prices QoQ. | Higher net financial costs and an | announced. |
Drop in prices in all segments and | unfavorable effect of the result per | MAPA reached 802 thousand tons of |
higher costs on BEKP YoY. | unit of adjustment. | production in 2023. |
Positive revaluation of biological | ||
assets and insurance compensation. |
ESG MILESTONES
Empresas Copec featured in S&P Sustainability Yearbook and ratified in the Dow Jones Sustainability Index
Copec obtains US$ 200 million green
loan to boost new energies.
Copec announced its investments in
sustainable fuels and battery
exchange stations.
I. CONSOLIDATED RESULTS - Quarterly Performance
975 | 1.004 | |||||||||||||
902 | 940 | 937 | ||||||||||||
883 | ||||||||||||||
810 | ||||||||||||||
675 | 718 | 397 | 315 | 668 | 636 | |||||||||
693 | 616 | 636 | ||||||||||||
609 | ||||||||||||||
591 | 573 | |||||||||||||
564 | ||||||||||||||
542 | ||||||||||||||
489 | 446 | 468 | 441 | |||||||||||
EBITDA up 4.5% QoQ and down 4.8% YoY
734
619
478 | 474 | ||||||
382 | |||||||
335 | 340 | ||||||
280 | 308 | ||||||
221 | 229 | ||||||
148 | 135 | 155 | 166 | ||||
98 | 118 | ||||||
59 | |||||||
22 | 6 | ||||||
-32 | -9 | -31 | |||||
-206 |
166
Higher Net Income
QoQ and YoY
*Figures of 1Q22, 2Q22, 3Q22, 4Q22 1Q23, 2Q23, 3Q23 and 4Q23 are presented net of Mapco's EBITDAs, which amounts to US$ 16 million, US$ 24 million, US$ 30 million, US$ 11 million, US$ 13 million, US$ 21 million, US$ | 5 |
30 million and US$ (6) million respectively.
** Figure of 1Q23 includes adjustment for non-operating depreciation.
I. CONSOLIDATED RESULTS - Quarterly Performance
EBITDA
4Q23 vs 4Q22 (US$ million)
53 | 6 | 5 | 4 |
-1
6 | 12 | 39 | |
-99 | -2 | ||
272 | |||
668 | 636 | 309 |
In the forestry sector EBITDA decreased due to lower prices in all divisions and increased costs in pulp, offset by higher volumes.
The energy sector EBITDA went up explained by higher margins.
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I. CONSOLIDATED RESULTS - Quarterly Performance
NET INCOME 4Q23 vs 4Q22
(US$ million) | • | Higher net income in Arauco. | ||||||
7 | ||||||||
10 | ||||||||
-8 | 13 | |||||||
14 | • | Increase in non operating income, explained by | ||||||
47 | ||||||||
a favorable revaluation of biological assets and | ||||||||
21 | 1 | insurance compensation. | ||||||
93 | -1 | -3 | -5 | 169 | • | Lower operating income and higher taxes. | ||
-8 | -84 | |||||||
• | Increased results at Copec. | |||||||
• | Higher operating income. | |||||||
77 | 166 | • | Increase in income from discontinued | |||||
operations due to the sale of Mapco. | ||||||||
(9)
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I. CONSOLIDATED RESULTS - Quarterly Performance
INCOME STATEMENT
Drop in net income explained by decreased operating income, partly offset by higher
LOWER OPERATING INCOME
non-operating income
- Arauco:
- Drop in prices in all divisions
- Higher unit costs for bleached hardwood, partly due to the ramp-up of MAPA
- Copec:
- Favorable inventory revaluation effect and higher commercial margins in Copec Chile.
- Higher volumes and margins of lubricants in Terpel.
HIGHER NON-OPERATING INCOME
- Revaluation of biological assets and insurance compensation in Arauco.
- Lower other expenses for write-offs and provisions of fixed assets occurred during the last quarter of 2022.
- Partly offset by unfavorable exchange differences.
CONSOLIDATED INCOME STATEMENT | |||
Million USD | 4Q 23 | 4Q 22 | Change |
Net income | 166 | (9) | 175 |
Operating income | 265 | 362 | (97) |
Non-operating income | (24) | (409) | 386 |
Other Income | 272 | (154) | 426 |
Other expenses | (118) | (231) | 113 |
Other profit (loss) | (6) | 6 | (12) |
Financial Income | 67 | 40 | 27 |
Financial expense | (176) | (128) | (48) |
Profit in associates and JV's | 59 | 70 | (12) |
Exchange Differences | (110) | (28) | (82) |
Gains (losses) on net monetary position | (12) | 15 | (27) |
Taxes | (142) | 47 | (189) |
Gains (losses) from discontinued operations | 72 | (4) | 76 |
EBITDA | 636 | 668 | (32) |
OTHER
- Higher profit from discontinued operations due to the sale of Mapco.
- Higher income tax, due to the effect of deffered
taxes from the sale of forestry assets in Brazil. | 8 |
I. CONSOLIDATED RESULTS - Quarterly Performance
FINANCIAL RATIOS
Profitability | 4Q 23 | 3Q 23 | 4Q 22 |
FINANCIAL RATIOS | 3,6% | 2,9% | 5,1% |
Operating margin | |||
EBITDA margin | 8,7% | 8,4% | 9,4% |
ROCE | 7,1% | 6,0% | 13,2% |
Leverage | 4Q 23 | 3Q 23 | 4Q 22 |
EBITDA / net interest expense | 4,7 | 5,0 | 12,3 |
Net debt / EBITDA | 3.9x | 4.0x | 2.4x |
COMMENTS
- Net debt / EBITDA decreased QoQ, due to lower net debt.
- EBITDA margin increased QoQ.
- Well-balanceddebt schedule for the coming years.
FINANCIAL DEBT MATURITIES | NET FINANCIAL DEBT / EBITDA | ||||||||||||||||||
Figures in US$ million | |||||||||||||||||||
4,6 | 4,6 | ||||||||||||||||||
4,0 | 4,2 | 4,0 | 3,9 | ||||||||||||||||
2.786 | 3,6 | ||||||||||||||||||
3,4 | 3,6 | ||||||||||||||||||
3,2 | |||||||||||||||||||
1.943 2.093 | 2,9 | 2,8 | 2,8 | ||||||||||||||||
2,4 | |||||||||||||||||||
2,4 | 2,2 | 2,4 | |||||||||||||||||
2,1 | 2,0 | 2,0 | 2,1 | 1,9 | 1,9 | 2,0 | |||||||||||||
1.071 | 890 | 966 | |||||||||||||||||
824 | 670 | ||||||||||||||||||
454 | 351 | 191 | 317 | ||||||||||||||||
102 | 116 | ||||||||||||||||||
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- CONSOLIDATED RESULTS
- REVIEW BY BUSINESS DIVISION III. HIGHLIGHTS OF THE QUARTER IV. Q&A
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EC - Empresas Copec SA published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 15:01:03 UTC.