Copesul reports 2004 earnings of US$227mn

Brazilian petrochemical company Copesul posted net profits of 594mn reais (US$227mn) in 2004 up from 204mn reais in 2003, the company said in a statement Monday. Revenues rose to 7bn reais in 2004 from 5.3bn reais the previous year. The higher revenue was a result of growing domestic demand, a 32% increase in average petrochemical prices, and a 51% rise in exports as the Brazilian economy produced along expected lines, the statement said. Copesul is a leading producer of ethylene and other petrochemicals in southern Brazil. Copesul's ethylene output reached a record 1.1 million tonnes in 2004, the statement said. Ethylene is one of the basic petrochemicals used to make plastic resins, which Copesul also produces. The plastic resin market grew 14% in 2004 from 2003 as the country's GDP expanded 5%. Revenues from the sale of thermoplastic resins rose 36% in 2004 from the previous year, while revenues from sales of solvents increased 0.8%. Revenues from fuel sales fell 15%, the statement said. 2005 OUTLOOK Copesul expects demand to increase in 2005. Lower oil prices, coupled with higher prices for its products, will boost revenue this year, the company said. In 2005, the company's new pyrolysis unit will start operations, while Copesul will continue a program to replace equipment in its furnaces and revamp its benzene production unit to increase output. Copesul plans to invest 150mn reais in 2005 to modernize its plant, up from 131mn reais in 2004, the company said. Copesul worked at 97% of capacity in 2004. That figure will decrease this year due to maintenance stoppages at the plant's second unit, it said.