Empresas Lipigas (LIPIGAS) Q3 2023 earnings summary

Executive summary

• Q3 EBITDA rose 7.7% YoY to M$40,662; profit after tax increased 11.2% to M$17,683. 9M EBITDA increased 6.4% to M$94,009, while profit after tax fell 6.3% to M$30,936.

• 9M revenue declined 17.6% to M$548,177 as lower volumes and international gas purchase prices weighed on sales; gross profit rose 4.1% to M$176,920 on stronger Chile and Colombia margins.

• Operations span Chile, Colombia and Peru, serving 3.6m customers through 40 bottling and storage plants; priorities include geographic diversification, adjacent businesses and lower-carbon products.

Financial highlights

• Q3 revenue fell 20.3% YoY to M$203,659, while gross profit grew 8.5% to M$72,362 and EBITDA rose 7.7% to M$40,662.

• 9M operating income increased 6.2% to M$57,141; operating expenses rose 3.5%, below the cited 8.6% inflation rate.

• 9M profit attributable to owners declined 6.5% YoY to M$30,339; Q3 profit after tax increased 11.2% to M$17,683.

• LTM revenue to Sep. 2023 was USD 814m, down 13.3%; EBITDA reached USD 128m, up 7%, FFO was USD 80m and net income was USD 42m, down 9.2%.

Outlook and guidance

• 2030 targets include 20% of revenue from outside core GLP/GN, 40% from outside Chile, a carbon-neutral core product portfolio and carbon-neutral operations; the 2050 target is 100% carbon-neutral products and services.

• Strategic priorities include expanding in Peru and Colombia, growing lower-carbon gas products such as BioGLP and BioGNL, developing electricity services and pursuing adjacent businesses.