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Orbia earnings triple YOY on strong PVC, construction

March 01/2021

MOSCOW (MRC) -- Orbia Advance (Mexico City, Mexico) reports fourth-quarter net income of USD98 million, up 227% year-over-year (YOY) from USD30 million, said Chemweek.

Revenue totaled USD1.742 billion, up 6% YOY from USD1.636 billion, mainly driven by higher sales in polymer solutions, building and infrastructure, and data communications, says the company. EBITDA increased 30% YOY to USD383 million, driven largely by higher prices of polyvinyl chloride (PVC) and specialty products in the polymer solutions segment and favorable market conditions in building and infrastructure.

Assuming no significant unexpected disruptions related to the COVID-19 pandemic, Orbia expects EBITDA to increase by 4-7% in 2021, driven by economic recovery.

The polymer solutions segment, consisting of Vestolit and Alphagary, turned in revenue of USD617 million, up 12% YOY on high PVC prices driven by tight supply. EBITDA increased 86% to USD158 million. All PVC sites operated at full capacity, Orbia notes.

The fluorinated solutions segment, or Koura, turned in revenue of $182 million, down 3% YOY on the continued impact of COVID-19 on key markets, partly offset by strong fluorspar shipments in December. EBITDA declined 23% to USD58 million on weak pricing and volumes.

Revenue in the precision agriculture segment, Netafim, totaled USD270 million, flat YOY as a rebound across most major markets in North America, Europe, the Middle East, Africa, and Asia was offset by continued pandemic-related challenges in Latin America, says Orbia. EBITDA increased 8% YOY to USD53 million.

The data communications segment, Dura-Line, turned in revenue of USD176 million, up 9% YOY, mainly driven by higher order volume in the US and Canada, partly offset by lower volume in Europe, the Middle East, Africa, and Latin America, where recovery was slower. EBITDA was flat at $34 million as a more favorable mix of higher-margin advanced products and accessories was partly offset by higher raw material costs.

Wavin, the building and infrastructure segment, had revenue of USD582 million, up 12% YOY, driven by strong demand in several countries across Europe and Latin America. EBITDA increased 69% to USD88 million.

As per MRC, Orbia Advance Corporation, S.A.B. de C.V., formerly Mexichem (Mexico City), announced that its board of directors has appointed Sameer S. Bharadwaj as its new Chief Executive Officer, effective February 1, 2021.

The shortage of suspension polyvinyl chloride (SPVC) remained in the world, and in recent weeks it has been exacerbated by a series of force majeure shutdown of the largest US producers. Many producers announced further price rise for March shipment; Russian producers also announced price increase for March shipment, according to the ICIS-MRC Price Report.
Author:Anna Larionova
Tags:PVC, EPVC, PVC paste, SPVC, Orbia Advance.
Category:General News
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