Q2 2024 Alpek SAB de CV Earnings Call Transcript
Key Points
- Alpek SA (FRA:27A) reported a 15% improvement in EBITDA compared to the previous year, reaching $170 million.
- The company achieved $75 million in annualized savings through structural cost reduction initiatives, including organizational restructuring in the polyester business.
- Alpek SA (FRA:27A) published its most comprehensive sustainability report to date, with improved ratings from MSCI to a triple B.
- Net debt decreased by 5% sequentially to $1.73 billion, with a net debt to EBITDA ratio of 3.3 times, down from 3.7 times in the previous quarter.
- The company maintained its investment-grade rating across three rating agencies, with Standard & Poor's reaffirming a stable and triple B minus rating.
- Temporary operating interruptions occurred due to low water availability in Tampico and Altamira, affecting three sites.
- Polypropylene reference margins remained flat, and Chinese integrated PET reference margins decreased, indicating pressure on profitability.
- Volume in the plastic and chemical segment decreased by 4% quarter-over-quarter due to production interruptions.
- The company faces challenges from excess capacity in petrochemical markets, particularly from China, impacting pricing and competition.
- Alpek SA (FRA:27A) announced no dividends for 2024, focusing instead on reducing leverage to a target of 2.5 times net debt to EBITDA.
Good morning, everyone. Welcome to Alpek second quarter 2024 earnings webcast. I am Barbara Amaya, Alpek IRO, and I am pleased to be here today with Jorge Young, our CEO, and Jose Carlos Pons, our CFO, who will be covering today's webcast presentation.
For today's presentation, first, Jorge will provide an overview for quarter, then Jose Carlos will expand upon the financial results. Finally, Jorge will review our expectations for the second half of the year, prior to the Q&A session.
Please note that the information discussed today may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to certain risks and uncertainties. Actual results may differ materially. However, the company cautions the market not to rely unduly on these forward-looking statements. Alpek undertakes no obligation to publicly update or revise any forward-looking statements, whether it is because of new information, future events, or otherwise. Financial results are expressed in US
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