Ultrapar's profits up 4%

Brazilian petrochemicals firm Ultrapar (NYSE: UGP) reported a net income of 76mn reais (US$26.5mn) in the third quarter, up 4% on the same quarter 2002. Net sales increased 28% to 1.06bn reais and EBITDA fell 10% to 144mn reais. Net earnings rose 34% to 187mn reais and net sales were up 40% to 2.93bn for the first nine months compared to the same period 2002. EBITDA increased 11% to 385mn reais in the same year-on-year comparison. Liquefied petroleum gas (LPG) sales from its gas arm Ultragaz totaled 378,300t in 3Q03, up 11% from 341,800t from the 3Q02. Performance at Ultragaz was generally in line with 3Q02, in spite of successive increases in LPG refinery prices during 2002, market demand retraction and migration of customers to natural gas, the company said. The acquisition of Shell Gas for 170mn reais on August 8 added 46,700t of LPG to Ultragaz's sales volume in 3Q03. Petrochemical sales from petrochemical arm Oxiteno reached 123,800t from 120,900t in the same comparison. The domestic market accounted for 75,900t of Oxiteno sales, 5% more than 3Q02, mainly due inventory replacement, greater penetration in the agricultural chemical sector, and acquisition of new clients substituting for imports, it said. Exports totaled 47,800t, 2% lower than in 3Q02, due to Oxiteno's continued strategy of giving priority to the domestic market, which presented substantial sales volumes in September. Capex totaled 48.9mn for the third quarter. In addition to market growth in Brazil, Ultragaz will also seek expansion opportunities abroad. Oxiteno will continue to pursue new products and technologies as well as break into new markets through acquisitions both in Brazil and overseas, Ultrapar said. The acquisition of Mexican petrochemical Berci Group's chemical business (Canamex) for US$10.25mn on October 14 aims to establish a growing presence in the Mexican specialty chemical market and serve as a platform for Oxiteno's expansion into Latin America and United States, the company added.