Empresas Lipigas (LIPIGAS) Q4 2023 earnings summary

Executive summary

• FY2023 EBITDA rose 13.6% to M$125,372; net income fell 4.6% to M$38,075 as non-operating expenses increased.

• Revenue declined 13.5% to M$739,487, mainly due to lower sales prices following reduced international gas purchase prices and lower volumes during a warmer winter.

• Chile contributed 76% of FY2023 EBITDA, Colombia 13% and Peru 11%; 24% of EBITDA came from outside Chile.

Financial highlights

• FY2023 gross profit increased 9.8% to M$240,539 and operating income rose 19.1% to M$75,548; operating expenses increased 6.4%.

• FY2023 profit attributable to owners was M$37,996, down 3.1%; financial costs climbed 49.9% to M$23,840.

• Q4 revenue grew 0.8% to M$191,310; gross profit rose 29.6% to M$63,619, operating income 90.8% to M$18,406 and EBITDA 42.4% to M$31,363.

• Q4 EBITDA increased across Chile, Colombia and Peru by 54.5%, 8.7% and 23.5%, respectively.

Outlook and guidance

• LNG growth opportunities include new mining clients and refueling stations for long-distance transport; investments target logistics, digital and clean-energy offerings.

• Bio-LPG supply from Omega Green is expected to be available in 2026; renewable dimethyl ether and BioLNG initiatives are also under development.

• Strategic aims include carbon-neutral operations and product offerings by 2030, and carbon-neutral products and services by 2050.