Empresas Lipigas (LIPIGAS) Q2 2023 earnings summary

Executive summary

• Q2 2023 EBITDA was CLP 34.650bn, up 6.6% YoY; 1H EBITDA was M$53,347, up 5.5%.

• 1H revenue fell 15.9% YoY to M$344,518, while after-tax profit declined 22.6% to M$13,253, mainly on weaker non-operating results.

• LTM June 2023 revenue was USD 984m, down 2.4% YoY; EBITDA was USD 141m, up 4.7%, and net income was USD 45m, down 11.9%.

• Total gas sales volume decreased 3.6% YoY; 24% of 1H EBITDA and 38% of 1H volume came from outside Chile.

Financial highlights

• Q2 revenue declined 19.6% YoY to M$187,886; EBITDA increased 6.6% to M$34,650 and operating income rose 3.9% to M$22,202.

• 1H gross earnings rose 1.3% to M$104,558 and operating income increased 0.8% to M$29,000 despite lower revenue.

• 1H pre-tax earnings fell 18.0% to M$19,236; financial costs rose 19.3% to M$11,413 and exchange differences swung to a loss of M$829.

• 1H operating cash flow rose to M$66,585 from M$23,696; cash and cash equivalents ended June at M$59,741.

Outlook and guidance

• Plans include LNG for industry and long-distance transport, renewable DME blended with LPG, and renewable BioLNG from organic waste.

• A commitment to acquire 70% of Frest SpA for US$5.5m, payable over five years, supports expansion into fresh-food sales and last-mile distribution.

• 2030 goals include carbon-neutral operations and carbon-neutral offerings, including Bio LPG, Bio LNG and a green LNG transport corridor; all products and services are targeted to be carbon neutral by 2050.