Unipar Leverages Chemical Division to Offset Petrochemical Industry Downturn

According to quarterly financial reports released by Unipar, the company posted strong fourth-quarter results despite navigating through a challenging petrochemical market cycle.

The Brazilian petrochemical producer reported fourth-quarter 2024 net income of R$293 million ($48.8 million), showing an 82% increase compared to the same period last year.

Unipar’s revenue surged 154% year-over-year to R$1.64 billion ($273.3 million) in the fourth quarter. For the full year, revenue reached R$5.43 billion ($905 million), representing an 11% increase despite industry headwinds.

The company’s performance benefited significantly from a R$130 million ($21.7 million) provision reversal related to energy contracts. Annual profit totaled R$557 million ($92.8 million), marking a 30% decrease from 2023.

This decline reflects the persistent downturn in the petrochemical sector and reduced PVC sales in Argentina amid local economic challenges under President Milei’s government.

EBITDA for the fourth quarter reached R$436 million ($72.7 million), more than five times higher than the previous year, with margins expanding to 27%. Even when adjusted for non-recurring items, EBITDA grew 44% year-over-year to R$342 million ($57 million).

Unipar’s Strong Performance Driven by Chemical Division

Rodrigo Cannaval, Unipar’s President, attributed the strong performance to the company’s chemical division. “Having this proportion of chemicals in our business proved important because ethylene-based products like PVC currently face difficulties,” Cannaval stated.

The company achieved record sales volumes of chlorine and caustic soda in Brazil during 2024. The positive results stem from organizational restructuring, efficiency improvement projects, and strategic investments implemented throughout 2024.

Key initiatives included investments in solar and wind power generation and expansion of the Santo André production facility. For 2025, Unipar anticipates similar global market conditions, with continued pressure on PVC business due to high interest rates limiting construction investments.

The company expects its chlorine and caustic soda segments to maintain strong performance. This is especially true in the domestic market, where demand remains robust.

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