Alpek SAB de CV Class A ( (ALPKF) ) has released its Q4 earnings. Here is a breakdown of the information Alpek SAB de CV Class A presented to its investors.
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Alpek SAB de CV Class A is a leading petrochemical company engaged in the production of polyester and plastics & chemicals, with a significant presence in the Americas and as the sole producer of polypropylene in Mexico. The company recently released its fourth-quarter 2024 results, highlighting a stable performance amidst anticipated seasonal effects, with annual comparable EBITDA reaching $699 million, surpassing previous guidance.
The company’s quarterly results showed a comparable EBITDA of $168 million, a slight year-over-year increase but a decrease from the previous quarter due to seasonal volume reductions and prior quarter’s high margins from ocean freight costs. Alpek achieved $75 million in annual cost savings and is on track to reach $100 million by mid-2025 through strategic cost-reduction initiatives, including the cessation of operations at the Beaver Valley facility. Additionally, the company’s deleveraging strategy successfully reduced its leverage ratio to 2.9 times.
Alpek’s revenue for the quarter was $1.74 billion, a 3% increase from the previous year but a 12% decrease from the previous quarter, impacted by lower volumes and a soft pricing environment. The company reported a net loss of $79 million, influenced by one-time effects related to the Beaver Valley facility shutdown. Despite these challenges, the company maintained its investment-grade ratings and a stable outlook from major credit agencies.
Looking ahead to 2025, Alpek’s management anticipates continued stable demand levels and reference margins similar to 2024, with expectations for ocean freight costs to normalize. The company remains focused on strategic initiatives to enhance competitiveness, optimize working capital, and explore opportunities to strengthen its financial position and cash flow generation.
