Chilean industrial conglomerate Empresas Copec reported a 15% increase in profit for the final quarter of 2024, attributed to higher pulp volumes and reduced costs at its forestry unit, Arauco (ANTCOC.UL).
Arauco is the primary profit driver for Copec, alongside its significant fuel-distribution operations, mining investments, and fleet of fishing vessels and factories.
In the fourth quarter, the company's profits reached $191 million, up from $166 million the previous year. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 1.7% to $644 million, with revenues also dropping by 6.4% to $6.77 billion.
These results fell short of analysts' expectations from LSEG, who had forecasted a quarterly net profit of $209.9 million, EBITDA of $680.1 million, and revenues of $7.03 billion.
Copec highlighted advancements in its "Sucuriu Project" in Brazil, announcing plans to commence construction in April on a $4.6 billion pulp mill projected to produce 3.5 million metric tons of dry cellulose annually.
Production at the new facility is anticipated to begin in the fourth quarter of 2027, with Copec disclosing an expenditure of $126 million on the project in the preceding year.