Empresas Copec SA reported second-quarter 2026 net income of $440 million, a 92% increase from the same period last year, as the Chilean conglomerate beat analyst forecasts across key financial metrics.
Earnings per share reached $0.34, exceeding the consensus estimate of $0.1962 by 73.3%, while revenue totaled $9.25 billion, 9.34% above the forecast of $8.46 billion. Adjusted EBITDA surpassed $1 billion for the first time, rising 30.2% year-over-year and 17.8% quarter-over-quarter. Traditional EBITDA also exceeded $1 billion, up 44% year-over-year and 19.8% quarter-over-quarter.
The energy division contributed EBITDA of over $600 million, supported by improved industrial margins, inventory revaluation and lubricants, while the forestry segment reported EBITDA of $415 million, including a $124 million stumpage effect from an asset sale. Arauco’s net income for the quarter was $121 million. The copper business, via a 40% stake in Mina Justa, generated EBITDA of $287 million, and wood products EBITDA recovered to $113 million from $84 million in the prior quarter.
Net debt stood at $10.4 billion, with total debt at $13 billion and cash reserves of nearly $3 billion, resulting in a net debt-to-adjusted EBITDA ratio of 3.13 times. Return on capital employed was 9%, while the EBITDA margin reached 9.7%. Capital expenditures totaled $920 million, primarily allocated to the forestry division.
The company issued $260 million in UF-denominated bonds with 10- and 20-year maturities and established a standby equity support facility of up to $450 million for Arauco, available from January 2027 through December 2028. Additionally, Empresas Copec sold 29,500 hectares of eucalyptus plantations in Valdivia and a 50% stake in the Puerto Coronel port.
On the operational front, the Sucuriú pulp mill project in Brazil reached 74.5% completion by the end of July, ahead of schedule. Engineering, procurement and civil construction are more than 90% complete, while railway construction is 45% complete. Startup remains on track for the fourth quarter of 2027, with projected steady-state cash costs for shipments to China estimated at $200 to $240 per ton in years three to four of operation.
Pulp prices at the end of July showed hardwood pulp around $570 per ton, softwood pulp at $690 per ton and dissolving pulp at $890 per ton. Management noted challenging demand conditions in China, particularly for printing, writing and tissue grades, while Europe saw solid demand for printing and writing paper and reduced competition from the Middle East, supporting hardwood prices.
Empresas Copec’s shares rose 2.35% in pre-market trading to $6,090 and closed 0.87% higher at $6,063.20, within a 52-week range of $5,702.10 to $7,949. The company trades at a P/E ratio of 7.46 with a dividend yield of nearly 3% and has maintained dividend payments for 35 consecutive years.
