Chile's Copec Q1 profit falls 8.5% on weaker forestry unit

By Natalia Siniawski

May 8 (Reuters) - Chilean industrial conglomerate Empresas Copec COPEC.SN on Thursday posted an 8.5% drop in first-quarter profit, as weaker forestry results from lower pulp prices and panel volumes were partly offset by a stronger energy sector performance.

First-quarter profits hit $208 million compared to $228 million in the same quarter last year, while revenues increased 1.8% to $7.25 billion.

The results landed below the expectations of analysts polled by LSEG, who had predicted a net profit of $220 million and revenues of $6.6 billion.

Forestry subsidiary Arauco ANTCOC.UL, which contributes the bulk of Copec's earnings, saw a decline of 22.4% in its core earnings driven by falling pulp prices and lower volumes, offset by higher wood prices.

Copec said while the sector showed positive pricing trends and improved sales toward the end of the quarter, overall market conditions worsened in March amid escalating trade tensions and newly announced tariffs, which fueled uncertainty.

Energy operating income rose on higher sales and margins at Copec Chile, growth in Terpel's lubricants unit, and improved results at Abastible, boosted by its new Gasib unit in Europe and stronger performance across Latin America.

Copec, which also operates a large fuel distribution network, holds mining interests and runs fishing operations, confirmed construction began in April on its $4.6 billion "Sucuriu Project" pulp mill in Brazil. The plant is expected to produce 3.5 million metric tons of dry cellulose annually, with operations set to begin in late 2027.