ALPEK, S.A.B. de C.V. (Alpek), the leader petrochemical company in Mexico, announced today unaudited results for the three-month period ended March 31, 2012. Revenue and EBITDA showed year-on-year gains reflecting the favorable industry conditions and operating improvements in its two business segments.
“In an international environment of heightened uncertainty and volatility, Alpek achieved positive results during the first quarter of 2012. In the polyester business, the benefit of the quick and successful integration of the businesses acquired last year continued to show. Also, sales improved over the previous quarter, reflecting the seasonal recovery in demand. Alpek’s margins were stable in all product lines. The Plastics and Chemicals business also continued to show good performance by improving sales volumes in the most important products”, said José de Jesús Valdez, Alpek’s CEO.
During 1Q12, Alpek invested U.S. $12 million in capital expenditures. In addition, the company paid cash dividends in the amount of U.S. $82 million in the period, and invested in working capital. However, net debt increased only U.S. $21 million. At the end of 1Q12, Alpek’s financial ratios were: Net Debt to LTM EBITDA of 1.5 times, and Interest Coverage of 8.1 times.
Alpek reported Majority Net Income of U.S. $78 million in 1Q12, up from U.S. $71 million in 4Q11. The increase in Net Income reflected both operating improvements, plus exchange gains that reduced its comprehensive financing expense.
