Empresas Lipigas S.A. announced today its consolidated financial results for the fourth quarter ended December 31, 2016.
Ángel Mafucci, General Manager of Empresas Lipigas said “”EBITDA generated in 2016 was CLP 78,118 million and was slightly below that of the previous year (CLP 79,046 million). These figures confirm that our businesses have consolidated, already in the second year of operations of the maritime terminal. Income after taxes presented a 7.2% growth. Sales volumes of equivalent LPG tons (including sales of network natural gas, compressed natural gas and liquefied natural gas) increased by 14.6%. EBITDA in Chile grew 1.3%. However, Colombia and Peru presented lower results compared to the previous year. In both operations, there were more aggressive competition conditions, largely affecting our higher price-ranged products. In Peru, the incorporation of the compressed natural gas operation, acquired at the beginning of 2016, was not able to offset these lower results of the LPG operation. As for other aspects of the business, during the last quarter in Chile we launched our new product, Lipigas Plus, LPG in a cylinder of a lighter composition than the traditional steel cylinder. This innovation shows the concern of Lipigas to offer new alternatives to the clients of the residential segment”.
Consolidated revenues reached CLP 96,298 million, representing a 0.8% decrease, mainly in Chile and Colombia. In Chile revenues decreased by CLP 3,265 million (4.8%) mainly due to lower unit prices of raw materials. In Colombia lower revenues by CLP 1,166 million compared to 4Q15 resulted from lower prices of raw materials and lower sales volume. Sales volume in Equivalent LPG tons increased by 8.4%.
Gross margin reached CLP 43,017 million, increasing by 2.7%. In Chile, gross margin decreased by 3.7% compared to 4Q15, a period during which improved margins were generated in the import operation. In Colombia, gross margin improved by 15.5% due to better unit margins. In Peru gross margin increased by 29.7% including the margin generated by natural gas sales from the acquisition of the Neogas in February 2016 (LP 2,715 million) which was not present during 4Q15. This higher margin was decreased by a 10.1% lower LPG sales volume compared to 4Q15 and lower LPG unit margins.
Negative non-operating income decreased by CLP 1,760 million principally explained by lower negative results by adjustment units and lower financial costs (mainly due to a lower restatement of non-current liabilities) compared to 4Q15.