Oxiteno could delay US investments - CFO

Brazilian fuels distribution and specialty chemicals conglomerate Ultrapar (NYSE:UGP) may delay the investments of chemical unit Oxiteno in the US. On a conference call Friday, André Covre, chief financial officer and director of investor relations, said that there could be a "possible delay" in the schedule of Oxiteno's investments in the US. "We will update the market in the coming months," he said, without providing further explanations. In 2012, Oxiteno acquired a 32,000t capacity chemicals plant in Pasadena, Texas, for US$15mn, and Covre said it has invested another US$15mn in adapting it to manufacture Oxiteno's surfactants. Covre expects the plant to deliver a margin of around US$230/t. This year, Oxiteno will also begin constructing a new plant in Pasadena with capacity of 70,000t/y, which will have similar margins when it begins operating in 2015, Covre said. Covre said Oxiteno was focused on consolidating recent investments rather than on new acquisitions, although it is always monitoring the market for opportunities. "At Oxiteno we are focused on capturing benefits from the completion and maturing of our investments in Brazil while implementing our business plans in Mexico, Uruguay and the US," he said. In the first quarter, Oxiteno invested 17mn reais (US$8.4mn), directed mainly to expansions underway in the US and Mexico, and in the maintenance of its existing production units. On Thursday (May 16), Ultrapar reported a 29% rise in net profit to 247mn reais, while Ebitda rose by 23% to 614mn reais. Ebitda at Oxiteno increased by 21% to 81mn reais.