Q3 2024 Alpek SAB de CV Earnings Call Transcript
Key Points
- Alpek SA (FRA:27A) surpassed expectations for the quarter, achieving the highest comparable EBITDA since 2022 at $218 million.
- The company paid $132 million in dividends to shareholders, demonstrating strong cash flow and commitment to returning value.
- Alpek SA (FRA:27A) is preparing for a spinoff from Alpha, which is expected to enhance liquidity and attract a broader investor base.
- Volume increased on both a quarterly and annual basis, reaching 1.22 million tons due to stable demand and normalization of operations.
- The company maintained its investment-grade rating across all three rating agencies, with Fitch reaffirming its stable rating.
- High ocean freight costs, while beneficial in the short term, are expected to normalize by 2025, potentially impacting margins.
- Net debt increased to $1.81 billion, with a net debt to EBITDA ratio of 3.1 times, indicating a need for continued focus on deleveraging.
- Guidance for the fourth quarter implies a 15% sequential contraction and a 35% year-on-year contraction in EBITDA.
- The company faces challenges from declining oil prices and a cautious market environment, which may impact purchasing volumes.
- There is uncertainty regarding the impact of the spinoff on shareholder behavior, with potential for market adjustments post-split.
Good morning, everyone, and welcome to Alpek's Third Quarter 2024 Earnings Webcast. I am Barbara Amaya, Alpek's IRO, and I am delighted to be here today with Jorge Young, our CEO; and Jose Carlos Pons, our CFO, who will be covering the webcast presentation.
For today's agenda, first, Jorge will cover the quarterly overview and discuss relevant events. Next, Jose Carlos will expand upon the financial results, and then Jorge will review the outlook for the remainder of the year and elaborate on the revised guidance. Finally, we will be taking any questions you may have.
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, and 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
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