This Tuesday, May 24, Empresas Lipigas S.A announced the results of the first quarter of 2022, ended on March 31.

Highlights last 3 months:

  • EBITDA generated was CLP 18,068 million, 9.1% lower than the previous year (CLP 19,876 million). Chile’s EBITDA decreased by CLP 1,971 million (-13.7%) due to lower unit gross margin and higher operating expenses. This was partially offset by higher LPG and NG sales volume. Colombia decreased its EBITDA by CLP 348 million due to lower unit margins and higher operating expenses. Peru increased its EBITDA by CLP 511 million due to higher unit gross margin and higher sales volume, mainly in NG.
  • Operating income decreased by 33.0% compared to the previous year, impacted by the decrease in EBITDA and higher depreciation and amortization due to investments made in recent years.
  • Consolidated LPG sales volume increased by 2.4%. Consolidated sales volume in equivalent LPG tons (including sales of network natural gas, compressed natural gas and liquefied natural gas) increased by 4.5% with an 18.1% increase in sales of natural gas in its different formats.
  • Income after taxes decreased by 71.8% due to a lower operating income of CLP 3,638 million and a more negative non-operating income of CLP 1,722 million.

About the results General Manager, Ángel Mafucci explained: “Lipigas results continue to be affected by the increase in international prices of oil by-products. Comparing the value of the first quarter of 2022 with December 2020 of the Mont Belvieu reference (which is applied to determine the cost of LPG), the increase has been 125%. The increase in the cost of LPG was compounded by the increase in general inflation in all the countries where we operate, the rise in the international price of inputs (steel, liquid fuels) and the increase in the exchange rate”.

He also commented that “the Chilean government has recently declared its intention to present a series of measures to reduce the impact of rising energy costs on consumers’ pockets. However, LPG, which is present in 95% of Chilean households, was unfortunately not included in these measures. Chile imports all the LPG it consumes and all the oil that is refined locally to produce LPG. And we depend on international prices. However, unlike other fuels, residential LPG does not have any type of mechanism that mitigates abrupt price increases”.

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