Empresas Lipigas (LIPIGAS) Q1 2024 earnings summary

Executive summary

• Q1 2024 EBITDA was M$29,131, up 55.8% YoY; operating income rose 137.6% to M$16,153 and net income reached M$9,451.

• Consolidated gas sales volume increased 2.3% to 192,754 LPG-equivalent tons; 28% of Q1 EBITDA came from Colombia and Peru.

• LTM EBITDA was CLP 135.806bn, up 22.4% YoY, with 23% generated outside Chile; LTM net income rose 20%.

Financial highlights

• Q1 revenue rose 18.1% YoY to M$184,968, driven by higher reference oil-product prices, sales volume and stronger Colombian peso and Peruvian sol.

• Gross earnings increased 33.9% to M$58,166, supported by higher margins across all operating countries; positive inventory effects reversed the negative effect in Q1 2023.

• Financial costs declined 11.9% to M$4,731, while financial income increased 192.9% to M$2,435, reflecting higher interest income on financial instruments.

• LTM revenue was CLP 767.823bn, down 8.1% YoY; equivalent sales volume was 872,745 tons, down 0.6%.

Outlook and guidance

• Strategy targets growth, transformation and diversification through renewable gases, sustainable electricity services through EVOL, logistics businesses and stronger Latin American operations.

• Four new LNG truck-refueling stations in Chile and Peru were scheduled to open during H1 2024; LNG development for industry and heavy transport supports the lower-emissions fuel strategy.

• Targets include carbon-neutral operations and products by 2030, and 100% carbon-neutral products and services by 2050.