In This Article:
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EBITDA: $760 million, up 27% year-on-year.
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Net Income: $404 million, significantly up from the previous quarter and last year.
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Debt-to-EBITDA Ratio: 2.5x, reduced from previous figures.
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EBITDA Pulp: $339 million, up 135% year-on-year.
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Wood Products EBITDA: $124 million, stable compared to the last quarter.
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Copec EBITDA: CLP211 billion, up from last year.
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Abastible EBITDA: CLP60 billion, up from CLP48 billion in the third quarter '23.
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Mina Justa EBITDA: $175 million, increased year-on-year and quarter-on-quarter.
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Total Financial Debt: $2.2 billion, with a well-balanced maturity schedule.
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Forestry Asset Sale in Brazil: Net cash inflow of $967 million.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Empresas COPEC SA (XSGO:COPEC) recorded an EBITDA of $760 million, up 27% year-on-year, driven by improved performances in forestry and energy sectors.
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The company announced the approval of the Sucuriu project by Arauco, marking the largest investment in its history with a new pulp mill in Brazil.
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Empresas COPEC SA issued its first green bond at the parent company level, raising USD 163 million with favorable market conditions.
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Abastible, a subsidiary, launched a new subsidiary focused on sustainable energy solutions, aiming to represent 20% of its EBITDA by 2028.
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Copec continues to advance in electromobility, announcing a new electro-terminal for buses in Valparaiso, enhancing its position in the sector.
Negative Points
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The company faced an unfavorable inventory revaluation effect for Copec, impacting quarterly comparisons.
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The pulp market experienced a weaker demand in the third quarter, with prices trending downward, especially for hardwood.
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Terpel, a subsidiary, recorded lower volumes in some geographies, notably affected by the closure of a significant mining client in Panama.
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The forestry sale in Brazil may lead to higher wood costs for Empresas COPEC SA, as previously vertically integrated operations now rely more on third-party suppliers.
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The European market showed signs of weakness, with several maintenance stoppages and declining hardwood prices.
Q & A Highlights
Q: Could you provide insights on the potential cost impacts for wood panels following the forestry sale, given the rising wood prices in Brazil? A: When we sold the forestry assets, we anticipated higher wood costs for the portion that was vertically integrated. Currently, about 70% of our wood comes from third parties, and we haven't seen significant cost differences yet. We are prepared for potential cost increases, and our mills maintain good margins and competitive EBITDA with the current wood supply structure. - Gianfranco Truffello, CFO