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United States

Profile: Ultrapar Participacoes SA (UGP)

UGP on New York Consolidated

22.75USD
22 Nov 2017
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Ultrapar Participacoes S.A. (Ultrapar), incorporated on December 20, 1953, is a holding company. The Company engages in the investment of its capital in services, commercial and industrial activities, through the subscription or acquisition of shares of other companies. The Company operates in various markets: specialized distribution and retail through Ultragaz, Ipiranga and Imifarma Produtos Farmaceuticos e Cosmeticos S.A. (Extrafarma); production of specialty chemicals through Oxiteno S.A.-Industria e Comercio (Oxiteno), and liquid bulk storage services through Ultracargo Operacoes Logisticas e Participacoes Ltda. (Ultracargo). The Company operates through five segments: gas distribution (Ultragaz), which distributes liquefied petroleum gas (LPG) to residential, commercial and industrial consumers, primarily in the South, Southeast and Northeast regions of Brazil; fuel distribution (Ipiranga), which is engaged in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities across the Brazilian territory; chemicals (Oxiteno), which produces ethylene oxide, and its primary derivatives and fatty alcohols; storage (Ultracargo), which operates liquid bulk terminals, primarily in the Southeast and Northeast regions of Brazil, and drugstores (Extrafarma), which trades pharmaceutical, hygiene and beauty products through its own drugstore chain in the states of Para, Amapa, Maranhao, Piaui, Ceara and Rio Grande do Norte.

Distribution of Liquefied Petroleum Gas

The Company distributes LPG through Ultragaz. Ultragaz operates across the nation in the distribution of both bottled and bulk LPG, including various states in Brazil, such as Sao Paulo, Rio de Janeiro and Bahia, and also sells bottled LPG through its own retail stores, through independent dealers, as well as through its own truck fleet, which operates on a door-to-door basis or on a scheduled delivery basis. Bulk LPG is serviced through Ultragaz's own truck fleet. Ultragaz consists of various operating subsidiaries, such as Companhia Ultragaz S.A.; Bahiana Distribuidora de Gas Ltda., which primarily operates in the Northeast region of Brazil, and Utingas Armazenadora S.A. (Utingas), a storage services provider that operates two facilities in Sao Paulo and Parana. The Company offers its products under the Ultragaz brand name. The Company has a fleet of approximately 90 vehicles for the delivery of gas bottles and approximately 280 vehicles for bulk delivery. Ultragaz also maintains a call center which centralizes LPG bottle orders made through phone calls.

Fuel Distribution

Ipiranga distributes ARLA (liquid agent to reduce nitrogen oxides emissions from heavy vehicles). Ipiranga also has a convenience store business, branded am/pm, including the bakery network and private label products under the same brand, as well as lubricant servicing businesses, Jet Oil and Jet Oil Motos. Ipiranga operates through approximately 90 storage terminals. Ipiranga also has relationship programs with resellers' employees, such as Clube Vip (VIP Club), for the sale of products and services, including credit cards, such as Cartao Ipiranga (Ipiranga private label credit card), Cartao Ipiranga Carbono Zero (Ipiranga Zero Carbon Card), gasoline and lubricants. Ipiranga has approximately 1,910 am/pm stores, approximately 520 bakeries and approximately 240 Beer Caves.

Petrochemicals and Chemicals

The Company's subsidiary, Oxiteno, is a producer of specialty chemicals. Oxiteno is a producer of ethylene glycols, ethanolamines, glycol ethers and methyl-ethyl-ketone in Brazil, as well as a producer of fatty alcohol in Latin America. Oxiteno's products are used in a range of industrial sectors, such as cosmetics, detergents, crop protection chemicals, polyester, packaging, coatings and oil industry. Oxiteno's principal commodity chemicals are ethylene oxide and ethylene glycol. Oxiteno's principal specialty chemicals include a range of products that are used as surfactants, softeners, dispersants, emulsifiers and hydraulic fluids. The principal ethylene glycol produced by Oxiteno is mono-ethylene glycol (MEG). Oxiteno also produces di and tri-ethylene glycol.

Storage services for liquid bulk

The Company, through Ultracargo, which is a provider of storage for liquid bulk in Brazil. Ultracargo stores and handles liquid bulk, primarily chemicals, fuels and vegetable oil. Ultracargo also offers ship loading and unloading services, the operation of pipelines, logistics programming and installation engineering. Ultracargo has storage facilities with a capacity of approximately 630 thousand cubic meters.

Retail Pharmacy

The Company's subsidiary, Extrafarma, is a drugstore chain. Extrafarma operates approximately 250 drugstores in approximately six states of Brazil. Extrafarma operates approximately two distribution centers in Belem, in the state of Para, and in Aquiraz, in the state of Ceara. Extrafarma operates both in the retail and wholesale of pharmaceutical products. Extrafarma's product portfolio in the retail business consists of various types of pharmaceutical products, such as branded medicine, generic medicine, similar medicine and over the counter (OTC) medicines, along with personal care products and convenience products. On the wholesale side, Extrafarma operates as a distributor of both pharmaceutical and personal care products.

Oil Refining

The Company's oil refining operations are conducted through its joint venture, Refinaria de Petroleo Riograndense S.A. (RPR). RPR consists of a refinery in the city of Rio Grande, in the state of Rio Grande do Sul, in the Southern region of Brazil. The refinery's nominal capacity is approximately 17,000 barrels per day, and its products include gasoline, diesel, naphtha, fuel oil, LPG, kerosene, asphalt and special solvents. Ultrapar owns approximately one third of the capital of RPR.

The Company competes with Petrobras, Nacional Gas Butano, SHV Energy, Raizen Combustiveis S.A., Alesat, Shell Chemical, Dow Chemical, Clariant, BASF S.A., Solvay, Stepan, ABRAFARMA, Raia Drogasil, DPSP, Pague Menos, Brasil Pharma, Araujo and Panvel.

Company Address

Ultrapar Participacoes SA

Avenida Brigadeiro Luis Antonio
1.343 8 andar, Bela Vista
SAO PAULO     01.317-910
P: +5511.31777014
F: +5511.31776107

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