Brazil's Vibra posts sharp drop in profit, hurt by high volatility

Brazilian fuel distributor Vibra Energia SA VBBR3 posted a nearly 45% decline in fourth-quarter net profit on Tuesday, hit by what the company described as "rampant" volatility in commodity prices and motor fuel demand.

The company's net profit reached 566 million reais, according to a filing with Brazil's stock exchange, while analysts expected around 457 million reais.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 1.1% to 1.581 billion reais during the October-to-December period.

Last year's financial performance was marked by several adverse factors, the firm noted, citing the unprecedented impacts of the war in Ukraine "compromising and changing global energy flows." Vibra stressed volatility in the diesel market in particular.

The fuel distributor's adjusted EBITDA margin came in at 157 reais per cubic meter, or nearly 2% lower than a year earlier, while the volume of fuel sold rose about 1%.