Alpek webcast on the company’s financial results for the fourth quarter of 2021
The Mexican conglomerate Alfa SAB de CV, whose portfolio includes the subsidiaries Alpek, Sigma, Axtel and Newpek, published the results of Alpek’s performance during the fourth quarter of 2021 on 16 February. In the report, Alfa looks back on an overall successful year to which Alpek (plastic materials, chemicals production with operations in the USA, Oman and Saudi Arabia) made a major contribution. US$ 962 million was reported in the EBITDA’s year-on-year comparison for 2021.
The results showed that the firm’s EBITDA was US$ 300 million, an increase of 28% over the previous quarter, which was mainly achieved through increasing reference margins for polyester and EPS. 1.2 million tonnes of material were produced by Alpek in Q4/21 and 4.8 million in 2021 as a whole, mainly due to high global demand for petrochemical products, as well as reduced availability.
In China, rising reference margins for PTA/PET driven by power rationing and consequent lower local PET production led to an increase of US$ 136 compared to the previous quarter. In Asia, the price per tonne of PTA/PET material rose by 36% from US$ 318 in Q3/21 to US$ 431 in Q4/21.
Alpek also announced the closure of fibre and caprolactam production facilities in the USA and Mexico which have not been economically viable for some time and which will also result in a significant reduction in the company’s carbon footprint during 2022.
With the US$ 620 million acquisition of the Oman-based PET producer Octal in early February, Alpek is aiming to expand its PET, rPET and PET sheet production capacity as well as investing in an established company with excellent growth opportunities in the strategically important MENA region. According to Alpek, the high level of recyclability and the firm’s in-house technology should result in low maintenance costs and CO2 emissions. These are key areas for the company’s future business development. Octal is also expected to bring more PET to the US market, with the new acquisition expected to contribute around US$ 80 million to EBITDA in Q2/22.
Looking ahead, the company plans to continue to invest more in plastics businesses whose products are easily recyclable. In addition to PET and rPET, Alpek also referred to expansions in PP and EPS and an increased focus on biodegradable plastics and research. Furthermore, various study projects are already underway in the areas of collection, sorting and chemical/polymer recycling for a range of applications, as well as a pilot scheme for the depolymerisation of PET by BHET.
During 2022, the company conservatively estimates an Asian PTA/PET margin of US$ 315 as a result of increased energy and logistics costs. Total production volume is expected to be five million tonnes of material, with capital expenditure estimated at US$ 830 million. Alpek also said that a 20% reduction in its emissions was possible by the end of the year.
