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Chilean commercial giant Copec posts first-quarter earnings up 47% on forestry, energy systems

Chilean commercial conglomerate Empresas Copec on Thursday published a net profit up 47%. for the very first 3 months of 2024 as its forestry and energy. units boasted much better results.

Quarterly net profit landed at $227.85 million from earnings. down 3% to $7.27 billion. Profits before interest, taxes,. devaluation and amortization (EBITDA), meanwhile, increased 33% to. $ 846 million.

Experts polled by LSEG had predicted a net revenue of. $ 260.50 million from profits of $7.55 billion.

Copec's forestry arm Arauco published a boost in profits. on greater volumes of pulp and wood items, though prices. dipped. Some of its costs were also lower from the year-ago. quarter, when plants shut down and damage was caused by forest. fires.

Costs and demand for pulp enhanced in Europe, Copec stated,. on a drop in paper supply from Asia, logistical problems at the. Suez Canal and the closure of paper mills. In China, pulp demand. gotten after the Chinese New Year though wood demand has actually been. affected by a slow local economy.

The company, which ships pulp and wood panels mostly to. Asia and North America, saw its profits plunge in 2015 as it. suffered from floods, droughts and forest fires - occasions connected. to the El Nino weather condition phenomenon and climate modification.

Arauco accounts for the bulk of revenues. it also has a significant fuel circulation organization in addition to. mining stakes and a fleet of fishing ships and factories.

Meanwhile in Copec's energy department, operating incomes increased. due to a boost in volumes moved through the gas station. channel in Chile and a favorable stock revaluation impact in. Colombia and Chile.

Copec prepares to invest $1.7 billion this year, the firm stated,. with 70% of those funds going to forestry, 25% to energy and the. rest going to fishing and other sectors.

(source: Reuters)