Q2 2026 Empresas Copec SA Earnings Call Transcript
Key Points
- Empresas COPEC SA (XSGO:COPEC) reported a strong quarter with adjusted EBITDA exceeding $1 billion, up over 30% year-on-year and 18% quarter-on-quarter.
- The Energy division delivered a record performance, with EBITDA of over $600 million, driven by favorable inventory valuation effects, strong industrial margins, and robust performance across Latin American geographies.
- The Forestry division showed a significant recovery, with EBITDA up 58.9% quarter-on-quarter, boosted by a $124 million stumpage gain from the sale of eucalyptus forests.
- The Sucuri project in Brazil is progressing well, reaching 74.5% completion, which is 6.4% ahead of schedule, and remains on track to start operations in Q4 2027.
- The company successfully issued $260 million in bonds with very favorable rates (3.34% and 3.46%) and strong demand, which will help smooth out its debt maturity profile.
- The Wood Products division rebounded strongly, with EBITDA increasing to $113 million from $84 million in the prior quarter, driven by higher panel volumes and prices.
- Pulp markets face a challenging environment in China due to weak demand for printing/writing and tissue, leading to high inventory levels and potential downward pressure on prices.
- The company's net financial debt-to-adjusted EBITDA ratio remains elevated at 3.30 times, partly due to the hybrid bonds issued by Arauco.
- Volumes in the Energy division were negatively impacted by higher prices, with a 6.6% year-on-year decrease in Copec's fuel volumes.
- The fishing division (Ihmour) reported a higher loss compared to last year, primarily due to lower catches in the fishing sector.
- Costs in the pulp division have been trending upward due to disruptive logistics and maintenance activities, which could pressure future margins.
- The company's credit metrics are at historically high levels, and the equity support agreement for Arauco, while providing a safety net, highlights ongoing financial strain within the subsidiary.
Good morning, everyone, and welcome to Empresas Copec's second-quarter 2026 results conference call. Today's presentation and the second-quarter 2026 earnings release are available on the company's Investor Relations website, 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's management and on information currently available to the company.
They involve risks, uncertainties and assumptions because they relate to the 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. And this opportunity,
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