Empresas Lipigas S.A. (“Lipigas” or “the Company”), leader in commercializing and distributing gas in Chile with operations in Colombia and Peru, announced its consolidated financial results for the fourth quarter ended December 31, 2015.
Consolidated revenues reached CLP 97,098 million, representing a 2.3% increase, resulting from a 10.3% sales volume improvement in equivalent LPG tons1 which was offset by lower sales prices due to the drop of international fuel prices.
Gross margin reached CLP 41,898 million, increasing 41.0%. Chile, as well as Colombia and Peru present a better gross margin. In Chile, this margin is favorably impacted by the beginning of operations of product imports by sea (that did not exist in 2014). The volume operated by the terminal during the quarter amounted to 55,254 tons generating a margin of approximately CLP 4,000 million. The remaining gross margin increase in Chile resulted from increased volumes in the channel for direct sales to end customers and better purchase opportunities of ground imported products, since 2014 was an unusually complex year for the development of imports from Argentina, especially during the last two quarters of the year. Additionally, in 2014 the strong decrease in fuel prices had a negative impact on results given the deterioration of realization values of inventories resulting in an estimated lower margin of CLP 2,000 million. In Colombia and Peru the margin improvement resulted from higher sales volume and better unit margins.
EBITDA reached CLP 18,321 million with a 95.0% growth. Chile, Colombia and Peru present a higher EBITDA resulting from improved gross margins, partially offset by higher operating expenses in Chile, CLP 2,692 million, as a result of increased salaries, fees, external consultants and information technology. In Colombia, expenses declined CLP 250 million due to lower freight expenses offset by increased maintenance expenses. In Peru, expenses increased CLP 772 million due to higher consulting expenses given the new acquisitions.