Q3 2024 Empresas Copec SA Earnings Call Transcript
Key Points
- Empresas COPEC SA (XSGO:COPEC) recorded an EBITDA of $760 million, up 27% year-on-year, driven by improved performances in forestry and energy sectors.
- The company announced the approval of the Sucuriú project by Arauco, marking the largest investment in its history with a new pulp mill in Brazil.
- Empresas COPEC SA issued its first green bond at the parent company level, raising USD 163 million with favorable market conditions.
- Abastible, a subsidiary, launched a new subsidiary focused on sustainable energy solutions, aiming to represent 20% of its EBITDA by 2028.
- Copec continues to advance in electromobility, announcing a new electro-terminal for buses in Valparaíso, enhancing its position in the sector.
- The company faced an unfavorable inventory revaluation effect for Copec, impacting quarterly comparisons.
- The pulp market experienced a weaker demand in the third quarter, with prices trending downward, especially for hardwood.
- Terpel, a subsidiary, recorded lower volumes in some geographies, notably affected by the closure of a significant mining client in Panama.
- The forestry sale in Brazil may lead to higher wood costs for Empresas COPEC SA, as previously vertically integrated operations now rely more on third-party suppliers.
- The European market showed signs of weakness, with several maintenance stoppages and declining hardwood prices.
Good morning, everyone, and welcome to Empresas Copec third-quarter '24 results conference call. Today's presentation and the third quarter earnings release are available on the company's Investor Relations website at investor.empresascopec.cl.
Before we begin, I would like to remind you that this presentation may include market outlooks and forward-looking statements, which are based on the beliefs and assumptions of Empresas Copec management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events, and therefore, depends 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. (Operator Instructions)
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