- Solid year despite continued normalization of margins and freight costs
According to the company’s website press release on February 16, 2023, Alpek, S.A.B. de C.V. (“Alpek” or “the Company”) announced its 2023 Guidance figures and key assumptions.
Even though margin normalization is foreseen for 2023, Alpek expects to maintain strong results, capitalizing on investments made during the previous year. Ocean freight costs will likely remain at low levels, impacting the Polyester and EPS business. In the Polyester segment, volume is expected to slightly reduce due to lower exports. Average Asian integrated PET reference margins should also decline year-on-year. Regarding the Plastics & Chemicals segment, volume is anticipated to slightly drop due to softer demand in both EPS and Polypropylene. EPS reference margins should normalize to historical levels, while North American Polypropylene margins are expected to gradually decline due to additional supply in the region.
Alpek’s Guidance figures are based on the following key assumptions:
- Average Brent crude oil reference price of U.S. $90 per barrel
- Asian Integrated PET reference margins of U.S. $320 per ton
- Exclusion of Inventory Adjustment and Carry-forward effect
