Empresas Lipigas S.A. announced its consolidated financial results for the first quarter ended March 31, 2017.
Consolidated LPG sales volume increases by 2.4% and consolidated sales volume in equivalent LPG tons (including sales of natural gas, compressed natural gas and liquefied natural gas) grows by 6.3%.
EBITDA reached CLP 15,354 million decreasing 3.5% regarding the same period of 2016. Chile and Peru present lower EBITDA given the increase in operating costs On the other hand, Colombia increased its EBITDA due to greater sales volume and an increase in unit margin.
Earnings after taxes decreased by 9.4% mainly explained by lower operating income regarding 1Q16 and greater income taxes, partially offset by a lower non-operating income.
Ángel Mafucci, General Manager of Empresas Lipigas said “EBITDA generated in the first quarter of 2017 reached CLP 15,354 million and was 3.5% below the previous year. LPG sales volume in Chile grew by 3.3% compared to 2016. However, this increased volume was offset by an increased level of expenditures in Chile, which largely relate to the implementation of our strategy of integration of the distribution chain to the final customer. The operation of Colombia increased its results significantly. Also, during the quarter we started the Rednova operation, our subsidiary in that country dedicated to the distribution of network gas. This is still an incipient segment, but that we consider has the potential for future growth. In Peru there is still an aggressive competition situation which is affecting sales margins. Although we ended the quarter with results lower than what we expected, we are deepening the strategy of approaching the final customer and analyzing new business niches in which to leverage our experience in providing efficient and reliable energy solutions to our customers”.