Ultrapar Q1 net profit up 29%

Brazilian fuels distribution, bulk storage and chemicals company Ultrapar (NYSE: UGP) said its net income in the first quarter of 2013 rose to 247mn reais (US$122mn), 29% more than in the first quarter of 2012. Net sales rose by 10% to 13.6bn reais. Sales at specialty chemicals unit Oxiteno increased by 17% to 755mn reais, due to 6% growth in sales volume and a 13% weaker real, partially offset by 3% lower average dollar prices. Oxiteno's sale volumes outside Brazil rose by 9% to 57,000t, reflecting recent international investments, while domestic sales rose by 5% to 141,000t. Sales increased mainly due to increased sales of specialty chemicals for the home and personal care segment and because of Oxiteno's acquisition of a specialty chemicals plant in Uruguay in November 2012. Ultrapar's Ebitda was up 23% at 614mn reais, with increases in all its business lines. Oxiteno's Ebitda in 1Q13 reached 81mn reais, a 21% increase over 1Q12, mainly as a result of the weaker real and higher sales volume, partially offset by the increased cost of ethylene and by expenses related to the startup of the company's operations in the US and in Uruguay. In the first quarter, Oxiteno invested 17mn reais, mainly in expansions underway in the US and in Mexico and in the maintenance of its production units.