Mexico Alpek swings to Q4 income on higher sales, acquisition

Source: ICIS News

2019/02/13

HOUSTON (ICIS)--Mexican polyester producer Alpek reported that its fourth-quarter net income rose because of higher sales and a non-cash benefit from an acquisition.

That benefit totalled $220m because of the acquisition of Petroquimica Suape, the polyester terephthalate (PET) business of Brazilian state energy producer Petrobras.

Fourth-quarter gross profit rose because of higher sales.

The following table summarises Alpek's Q4 performance. Figures are in millions of pesos.

m Ps Q4 18 Q4 17 Change
Sales 34,802 25,010 39.2%
Cost of sales 31,245 21,941 42.4%
Gross profit 3,557 3,069 15.9%
Net income 8,009 -385

The following table shows the performance of Alpek's segments. Unlike the company-wide results, the sales and earnings figures are in millions of dollars, not millions of pesos.

Volumes Q4 18 Q4 17
Polyester 851,000 752,000
Plastics & chems 210,000 224,000
Sales
Polyester ($m) 1,295 933
Plastics & chems ($m) 400 388
EBITDA
Polyester ($m) 316 77
Plastics & chems ($m) 52 64

For the polyester segment, revenue rose because of higher volumes and sales prices. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose because of a recovery in margins and because of the acquisition from Petrobras.

For plastics & chemicals, volumes fell but average selling prices were mixed. EBITDA fell because of higher costs for feedstock caprolactam, which was caused by constraints in domestic supply, Alpek said.

Alpek is part of the Mexican industrial conglomerate Grupo Alfa.