Empresas Lipigas (LIPIGAS) Q1 2023 earnings summary

Executive summary

• Q1 2023 EBITDA rose 3.5% YoY to M$18,697 as consolidated gas volume fell 2.3%; operations outside Chile generated 36% of EBITDA and 41% of equivalent sales volume.

• Revenue declined 10.8% YoY to M$156,632; net income fell 53.8% to M$706.

Financial highlights

• Cost of sales fell 15.2% to M$113,198, lifting gross profit 3.2% to M$43,434; operating income declined 8.0% to M$6,798.

• Higher unit gross margins in Chile, Peru and Colombia supported EBITDA growth; depreciation and amortization was M$11,898.

• Earnings before tax fell 32.4% to M$1,464; financial costs rose 5.6% to M$5,368, while financial income increased to M$831 and FX losses narrowed to M$656.

• LTM through March 2023 EBITDA was CLP 110,969mn, up 8.1% YoY; net income was CLP 39,088mn, down 7.5%.

Outlook and guidance

• Strategy prioritizes international growth and diversification, LPG/CNG network expansion, and electricity and new-business platforms.

• Green-gas work includes industrial LNG, truck-fueling stations, renewable-gas blends, green-hydrogen research and an rDME agreement with Suburban Propane and Oberon Fuels.

• EVOL provides energy-efficiency, renewable-generation and electricity-project advisory services; investments include Ecom Energía, Ecom Generación and Four Trees Energía Distribuida.