MOSCOW (MRC) -- Mexichem shares gained by the most in six years after the petrochemical company controlled by billionaire Antonio del Valle Ruiz said profit surged last quarter, said Hydrocarbonprocessing.
Shares rose 7% on Tuesday to 47.30 pesos, the biggest advance since June 1, 2009. It was the best performance on the IPC benchmark equity index.
Net income surged 29% to USD64 million in the second quarter from a year earlier as sales of the chlorine-vinyl group jumped 9%, Mexichem said. The results prompted Credit Suisse Group analysts led by Vanessa Quiroga to increase their recommendation to the equivalent of buy.
"Our upgrade is driven by an inflection point we foresee in Mexichem’s profitability," the analysts said in a research note to clients.
Mexichem forecasts double-digit growth in earnings before interest, taxes, depreciation and amortization this year, CEO Antonio Carrillo said on the company’s second-quarter earnings call.
As MRC informed earlier, on 1 December 2014, Mexichem completed the acquisition of Vestolit GmbH. Vestolit will be consolidated under Mexichem's chlorine-vinyl chain for accounting purposes.
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin Americaп's largest manufacturer of PVC pipe, vinyl resins and compounds. The company has annual revenues of more than USD5 billion and has been listed on the Mexican Stock Exchange for more than 30 years.
MRC