Empresas Copec (COPEC) Q1 2025 earnings summary

Executive summary

• EBITDA for 1Q25 was US$774 million, up 20.3% quarter-on-quarter but down 8.4% year-over-year, driven by strong energy sector performance and the first-time consolidation of Gasib, while forestry declined due to lower pulp prices and volumes.

• Net income for Q1 2025 was US$208 million, up 8.9% sequentially but down 8.5% year-over-year, mainly due to lower pulp prices and panel volumes in forestry.

• 1Q25 sales reached US$7,250 million, up 1.8% year-over-year and 7.0% sequentially.

• 2025 investment plan totals US$3.014 billion, with 79.2% allocated to forestry and 19.1% to energy.

• ESG leadership maintained, with a US$500 million sustainable bond issuance, top Merco ESG ranking, and Duragas achieving carbon neutrality in Ecuador's LPG sector.

Financial highlights

• EBITDA margin for 1Q25 was 11.9%, up from 9.6% in 1Q24.

• Net financial debt/EBITDA at 2.78x, down year-over-year but up sequentially.

• CapEx for the quarter was US$406 million, with 85% allocated to forestry, mainly for the Sucuriú project.

• Cash position remained strong at US$2.3 billion.

• Forestry EBITDA was US$365 million, down from US$471 million in 1Q24 due to lower pulp prices.

Outlook and guidance

• Energy division expected to continue stable growth, especially in lubricants and LPG, with potential volatility in industrial and mining segments.

• Forestry sector faces uncertainty due to tariffs and market caution, but restocking in China could occur if trade tensions ease.

• Sucuriú project progressing on schedule, with 5.2% physical progress and US$341 million disbursed by end of April.