MOSCOW (MRC) -- Mexican petrochemicals firm Alpek reported a 14% year-on-year drop in first quarter revenue, impacted by a steep decline in polyester feedstock prices, said Bnamericas.
Alpek's net income dropped 61% to USD24mn compared to 1Q13, but rose from a USD9mn loss in 4Q13.
Alpek's polyester segment was hit by the recent drop in feedstock prices, which led to a USD22mn inventory devaluation charge and created "a temporary mismatch between sales prices and average feedstock costs that negatively impacts margins," according to the firm's financials.
First quarter Ebitda was USD105mn, down 34% year-on-year and 20% from the fourth quarter. The company invested USD44mn in projects during the first quarter. Alpek's Cosoleacaque cogeneration plant is slated to begin operations in 2Q.
Alpek's drop in revenues impacted parent company Alfa, which reported a 38% year-on-year drop in first quarter profits. Alfa invested USD236mn in 1Q to support future growth, mainly through energy projects.
As MRC wrote before, Russian ONK and Alpek in September 2013 signed an agreement for joint project for construction of PTA and PET plant in Ufa (Russia). )
Alpek is the largest petrochemical company in Mexico and the second largest in Latin America. The company operates through two business segments: Polyester chain products (PTA, PET and polyester fibers), and Plastics and Chemicals products (PP, EPS, caprolactam, polyurethanes and other specialty and industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, operates the largest expandable polystyrene plant in America and one of the largest polypropylene plants in North America. It is also the only producer of caprolactam in Mexico. The company operates 20 plants in Mexico, USA and Argentina, and employs 4,700 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.