Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Empresas COPEC SA (XSGO:COPEC, Financial) achieved an EBITDA of $644 million in Q4 2024, consistent with Q4 2023, indicating stable financial performance.
- The company made significant progress in its Sucuriú project, with 3.7% physical progress and 2.7% of total CapEx already incurred.
- Abastible closed the acquisition of GASIB assets in Spain and Portugal, enhancing its market presence in Europe.
- Empresas COPEC SA (XSGO:COPEC) was confirmed in the Dow Jones Sustainability Index Chile for the ninth consecutive year and included in the S&P Global Sustainability Yearbook 2025.
- The energy division recorded a total EBITDA of $1.2 billion for the year, reflecting strong performance in the energy sector.
Negative Points
- The drop in pulp prices significantly impacted the company's quarterly performance, leading to a decrease in EBITDA compared to the previous quarter.
- The industrial margin in the energy sector was volatile, contributing to a lower EBITDA in the last quarter compared to the previous year.
- The fishing division experienced negative EBITDA for the last two quarters, highlighting volatility in this segment.
- The company faces challenges in the competitive industrial segment, with volatility in contract volumes and consumption.
- There is uncertainty in the market due to tariff situations, affecting demand and pricing strategies, particularly in the wood and pulp sectors.
Q & A Highlights
Q: Regarding the Sucuriú project, are both fiber lines planned to start simultaneously, or will one line start before the other?
A: It's one mill with three different lines of dryers and product preparation, all starting at the same time in the last quarter of 2027. A second mill is an option for the future but not yet decided. - Gianfranco Truffello Jijena, CFO of Celulosa Arauco y Constitución SA
Q: How sustainable are the lower costs at Mina Justa, and what's the update on its expansion project?
A: The low costs are likely nonrecurrent, with expectations to return to $1.4-$1.5 levels in 2025. The expansion project is under evaluation and could extend the mine's life by five years with an additional 500,000 tons of production. - Rodrigo Huidobro, CFO of Empresas Copec SA
Q: What is the strategy for the wood panels unit in Brazil after selling some lands?
A: Despite selling forestry in Paraná, the mills remain competitive by sourcing from third parties. The plan is to continue operations and supply clients effectively. - Gianfranco Truffello Jijena, CFO of Celulosa Arauco y Constitución SA
Q: Are there any cost pressures on the Sucuriú project due to supply chain inflation?
A: No significant cost overruns have been observed. Most contracts are closed, and the project is on budget, benefiting from favorable exchange rates. - Gianfranco Truffello Jijena, CFO of Celulosa Arauco y Constitución SA
Q: Is the weakness in Empresas Copec's industrial segment due to increased competition?
A: The market is competitive, but market shares remain stable. Volatility is more due to contract wins/losses and fluctuating client consumption, especially in power generation. - Rodrigo Huidobro, CFO of Empresas Copec SA
Q: Will investments in electromobility slow down due to slower EV adoption?
A: The strategy allows flexibility to adjust pace based on market developments. Copec remains a leader in electromobility, prepared for various energy scenarios. - Rodrigo Huidobro, CFO of Empresas Copec SA
Q: What is the impact of US import duties on Copec's operations, particularly in pulp and wood products?
A: Tariffs could affect wood prices in the US, potentially benefiting Copec's US operations in the short term. However, long-term impacts on construction demand are uncertain. - Gianfranco Truffello Jijena, CFO of Celulosa Arauco y Constitución SA
Q: What are the planned CapEx and expectations for Abastible with the GASIB acquisition?
A: Preliminary CapEx for 2025 is around $3 billion, with significant allocations for Sucuriú. Abastible expects a 10-15% increase in sales and higher EBITDA due to better margins in Spain and Portugal. - Rodrigo Huidobro, CFO of Empresas Copec SA
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
