TLALNEPANTLA DE BAZ, Mexico--(BUSINESS WIRE)--Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“the Company” or “Mexichem”) today announced its unaudited results for 3Q16. The figures have been prepared in accordance with International Financial Reporting Standards (“NIIF” or “IFRS”), IAS 34, interim financial reporting though the accounting policies and methods are consistent with the annual consolidated financial statements as of December 31st, 2015, having US dollars as the functional and reporting currency. All comparisons are made against the same period of the prior year, unless specified to the contrary.
Given that Mexichem’s reported earnings results (including the impact of the incident at PMV’s VCM plant) differ substantially from its reported operating results (without the impact), for clarification purposes this report contains reported EBIT, EBITDA and net income including the one-time net benefit related to PMV´s VCM plant, as well as *Adjusted EBIT, EBITDA and net income which exclude that effect. Additional details are contained on page 9.
.Third Quarter 2016 Financial and Operating Highlights
- Reported EBITDA including $224 million in one-time net benefit related to PMV´s VCM plant, was $466 million. Adjusted EBITDA which excludes this effect was $242 million
- Consolidated Adjusted EBITDA margin expanded over 111 bps to 17.3%, reflecting higher margins across all key business units
- Reported net majority income was $155 million; adjusted net majority income increased 25% to $68 million,
- Reported revenue and EBITDA were $1.4 billion and $466 million respectively, and adjusted on a constant currency basis were $1.42 billion and $470 million, respectively. See more p 14
Establishes Canadian Presence through Acquisition of Gravenhurst Plastics
Company on Track to Reach Guidance of Approximately $900 Million in Adj EBITDA for 2016
CONSOLIDATED SELECTED FINANCIAL RESULTS |
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Third Quarter | January - September | |||||||||||||||||
Consolidated (mm US$) | 2016 | 2015 | %Var. | 2016 | 2015 | % Var. | ||||||||||||
Net Sales | 1,400 | 1,446 | -3% | 4,090 | 4,408 | -7% | ||||||||||||
Operating Income | 374 | 138 | 172% | 363 | 401 | -10% | ||||||||||||
EBITDA | 466 | 234 | 99% | 637 | 698 | -9% | ||||||||||||
EBITDA margin | 33.3% | 16.2% | 1,709 | 15.6% | 15.8% | - 26 | ||||||||||||
Net Majority Income | 155 | 54 | 187% | 173 | 137 | 26% | ||||||||||||
Operating cash flow before Capex | 170 | 217 | -22% | 308 | 417 | -26% | ||||||||||||
Total CAPEX (organic & JV) | -87 | -216 | -60% | -320 | -467 | -32% | ||||||||||||
Free Cash Flow* | 70 | -14 | N/A | -53 | -99 | -46% | ||||||||||||
Adjusted Operating Income* | 150 | 138 | 9% | 424 | 401 | 6% | ||||||||||||
Adjusted EBITDA* | 242 | 234 | 3% | 699 | 698 | 0% | ||||||||||||
Adjusted EBITDA Margin* | 17.3% | 16.2% | 111 | 17.1% | 15.8% | 125 | ||||||||||||
Adjusted Net Maj Income* | 68 | 54 | 25% | 204 | 137 | 49% | ||||||||||||
Nine Month 2016 Financial and Operating Highlights
- Reported EBITDA including $224 million in one-time benefit related to PMV´s VCM plant was $637 million; Adjusted EBITDA was $699 million
- Consolidated Adjusted EBITDA margin expanded over 125 bps to 17.1%, reflecting higher margins across key business units
- Reported net majority income was $173 million, and adjusted net majority income increased by 49% to $204 million y-o-y.
- LTM ROE and ROIC were 3.7% and 5.1% while adjusted LTM ROE and ROIC was 5.1% and 5.7% respectively.
- Reported sales and EBITDA were $4.1 billion, and $637 million respectively, and adjusted on a constant currency basis were $4.3 million and $746 million, respectively. See more p 14.
MANAGEMENT COMMENTARY
Mexichem continued to perform well in the third quarter, demonstrating the ability to expand EBITDA margins and profitability levels within a period of challenging market conditions. The accomplishments of the third quarter and first nine months of this year underscore the strength of our strategic initiatives to expand Mexichem’s portfolio of specialty products, diversify our end-markets and geographic footprint, and develop profitable cross-sell opportunities, all with a view toward increasing companywide returns.
Results by Business Group were in line with our expectations and reflected the resilience and stability that has characterized Mexichem throughout 2016. Each of our key operating segments posted improved EBITDA margin performance. Resins, Compounds and Derivatives, which accounted for 97% of our Vinyl unit’s sales, benefited from higher volumes this quarter particularly in Europe. Successful end market diversification in our Fluor Group and higher pricing for certain upstream products enabled us to expand margins despite volume declines. In Fluent, a more favorable product mix resulted in higher margins, overcoming a sales decline that was primarily due to currency fluctuations.
In sum, Mexichem’s third quarter results put us on track to reach our full year EBITDA guidance of approximately $900 million, an important achievement given the difficult industry conditions we faced, the loss of VCM and ethylene production at PMV and the effect of the U.S. dollar appreciation, which significantly reduced our reported revenues and EBITDA in the first nine months of this year. Additionally, our financial metrics and ratios continue to improve. Capital expenditures have declined substantially. Our equity contribution in our Texas- based ethylene cracker at the end of 3Q16 was 87%. Our free cash flow almost doubled in the third quarter and will continue to increase; and our net debt/adjusted EBITDA improved to 1.8x.
Today, we announced an acquisition of Gravenhurst Plastics Ltd. (GPL), a privately- held Canadian plastic pipe manufacturer company based in Gravenhurst, Ontario (outside Toronto) with a secondary location in Temiskaming. This transaction is emblematic of our strategy to expand our portfolio of value-added specialty products for the datacom industry and to enter new markets through strategic initiatives.
Based on our current visibility, we believe that Mexichem is positioned for significant revenue growth in 2017. The key contributor will be our ethylene cracker, which is scheduled to come on line in the first quarter and to continue to ramp throughout the year. Other organic growth initiatives include expanding our compounds business, moving forward with pilot programs in Fluor, creating sales synergies amongst our business units and innovating and expanding our product portfolios. Additionally, with the major capital expenditure program behind us, we will consider bolt-on acquisitions, similar to the one announced today that will serve as a platform for Mexichem products in new geographies and with new customers and end markets. The contribution from revenue growth, as well as favorable product mix and ongoing operating efficiencies are expected to result in strong EBITDA performance and higher returns in 2017.
Clarifications
In the fourth quarter of 2015 the Company completed a restructuring process in its Fluor Business Group resulting in a total of $49.9 million being reported as “discontinued operations” in full year 2015 results, in accordance with the IFRS regulations. Year-on-year figures in this report are not comparable given that results reported in the 1st, 2nd, and 3rd quarters of 2015 include the operations that were discontinued in 4Q15; Appendix I attached to this report contains comparable figures for each quarter of 2016 vs 2015.
During the first nine months of 2016 we performed an analysis which has led us to present the elimination of investment in subsidiaries under the heading “Other Asset” by Business Group instead of “Consolidated Eliminations”. The comparative information by segment following this reclassification is included in Appendix II.
REVENUES
Third quarter 2016 reported revenues were $1.4 billion, $46 million or 3% below last year’s levels. Approximately one-half of the decline or $24 million was due to the appreciation of the U.S. dollar against most of our other operating currencies The remainder was due to the net effect of lower sales volumes in Fluor and weaker U.S. demand for Fluent’s oil and gas pressure pipes, partially offset by the slightly higher revenues in our Vinyl Group mainly in Europe, which experienced strong and consistent demand.
On a constant currency basis, total sales would have decreased 2% year-on-year.
Revenues for 9M16 were $4 billion, or 7% below 2015 levels. Foreign currency translations accounted for 60.4% of the decline. On a constant currency basis, total sales would have decreased 3% year-on-year.
The United States represented 17% of total sales for the first nine months of 2016, Brazil accounted for 6%, and the UK and Germany represented 8% and 13%, respectively.
EBITDA AND ADJUSTED EBITDA
Reported EBITDA for 3Q16 was $466 million inclusive of PMV’s one-time benefit of $224 million, compared to $234 million in 3Q15, and Adjusted EBITDA for the quarter was $242 million, an increase of 3% y-o-y, primarily reflecting the strong performance in our Resins, Compounds and Derivatives business within our Vinyl Business Group and the absence of the hedging strategy loss that impacted last year’s third quarter.
These positive factors were offset the strength of the U.S. dollar globally. On a constant currency basis Adjusted EBITDA would have increased 5% to $247 million. Adjusted EBITDA margin expanded by 111 bps to 17.3% from 16.2%, benefitting from a combination of the previously mentioned factors, and lower input costs for certain products in our Vinyl Group and a more favorable product mix in Fluent.
For the first nine months of 2016, Adjusted EBITDA was $699 million, flat with the $698 million reported in 9M15, despite a $48 million negative foreign exchange impact in the 2016 period. On a constant currency basis, nine month 2016 Adjusted EBITDA would have increased 7% to $746 million.
OPERATING INCOME AND ADJUSTED OPERATING INCOME
Including the one-time benefit related to PMV´s VCM plant, the Company reported operating income for the third quarter of $374 million. Adjusted operating income was $150 million, 9% higher than in 3Q15, and adjusted operating margin expanded 123 bps to 10.7%. These results were due to the above-mentioned factors. See additional details on page 9.
FINANCIAL COSTS
In 3Q16, financial costs decreased 9% to $50 million from $55 million in 3Q15 which included $14 million in losses related to a Euro-denominated intercompany loan, which the company did not have in 3Q16 as the position was hedged in 4Q15. The 27% decline in nine month 2016 financial costs reflected this impact as well as lower FX losses.
TAXES
Cash tax in 3Q16 was 21% lower compared to 3Q15 mainly due to a 10% reduction in fluorspar volume lowered the mining tax.
Reported deferred taxes increased $73 million mainly as a consequence of the recognition of the $224 million account receivable (revenue of $252 million net of $28 million in expenses for the 3Q16) related to the insurance claim associated with the PMV incident.
The Company’s reported effective tax rates for the third quarter and first nine months of 2016 were 29% and 35%, respectively; adjusted for the PMV´s one-time benefit the effective tax rates were 30% and 31%, respectively.
MAJORITY INCOME (LOSS)
In 3Q16, the Company reported net majority income of $155 million compared to a profit of $54 million in 3Q15, while adjusted net majority income was $68 million, an increase of 25%. For the first nine months of 2016, the Company reported net majority income of $173 million inclusive of the related PMV one-time benefit; adjusted net majority income was $204 million or an increase of 49% compared to $137 million in 9M15.
OPERATING CASH FLOW HIGHLIGHTS – |
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Third Quarter | January - September | |||||||||||||||||
2016 | 2015 | %Var. | 2016 | 2015 | % Var. | |||||||||||||
EBITDA | 466 | 234 | 99% | 637 | 698 | -9% | ||||||||||||
One time non-cash Items | -220 | 0 | 25 | 0 | ||||||||||||||
Cash Tax | -36 | -46 | -21% | -128 | -128 | 0% | ||||||||||||
Net Interest | -43 | -45 | -6% | -125 | -134 | -6% | ||||||||||||
Bank Commissions | -3 | -4 | -12% | -9 | -13 | -34% | ||||||||||||
Monetary position and Exchange loss | -4 | -28 | -87% | -18 | -47 | -61% | ||||||||||||
Change in Trade Working Capital | 10 | 106 | -91% | -74 | 41 | N/A | ||||||||||||
Operating cash flow before Capex | 170 | 217 | -22% | 308 | 417 | -26% | ||||||||||||
CAPEX (organic) | -50 | -72 | -31% | -150 | -180 | -17% | ||||||||||||
CAPEX (Total JV) | -70 | -272 | -74% | -299 | -526 | -43% | ||||||||||||
CAPEX JV (OXY SHARE) | 32 | 128 | -75% | 129 | 240 | -46% | ||||||||||||
NET CAPEX JV | -37 | -144 | -74% | -170 | -286 | -41% | ||||||||||||
Total CAPEX (organic & JV) | -87 | -216 | -60% | -320 | -467 | -32% | ||||||||||||
Cash Flow | 84 | 1 | 7354% | -11 | -50 | -78% | ||||||||||||
Dividends | -14 | -15 | -6% | -42 | -49 | -14% | ||||||||||||
Free Cash Flow | 70 | -14 | N/A | -53 | -99 | -46% | ||||||||||||
- The decline in operating cash flow before capital expenditures was mainly due to working capital management. In 3Q15, Mexichem reduced its working capital needs by $106 million compared to 3Q14, and in the 3Q16 working capital needs were reduced by an additional $10 million from 3Q15 levels, demonstrating Mexichem’s continued ability to operate with significantly reduced working capital requirements. The increase in working capital requirements in the first nine months of this year compared to the similar period last year reflects the seasonality of our business, particularly relating to Fluent’s USA/Canada and European operations, where working capital requirements are higher in the first half of the year and decline in the second half.
Capital expenditures in 3Q16 decreased 60% to $87 million, $32 million of which was invested in the ethylene cracker, $6 million as carry over in PMV, and $50 million allocated to organic projects.
As of September 30, 2016, Mexichem’s equity investment in the ethylene cracker reached $657 million. This amount represents 87% of the total equity investment that Mexichem contracted for with OxyChem to gain a 50% stake in the joint venture.
NET WORKING CAPITAL |
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2016 Variation | 2015 Variation | |||||||||||||||||
Sep-16 | dec-15 | D ($) | Sep-15 | dec-14 | D ($) | |||||||||||||
Net Working Capital | 319 | 246 | -74 | 526 | 566 | 41 | ||||||||||||
The Net Working Capital balance as of September 30, 2016 when compared to the same period last year reflected a $207 million decline in working capital requirements.
FINANCIAL DEBT |
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Last Twelve Months | ||||||
Sep 2016 | Dec 2015 | |||||
Net Debt USD | 1,664 | 1,703 | ||||
Net Debt/EBITDA 12 M | 2.0x | 1.9x | ||||
Net Debt/Adj EBITDA 12 M | 1.8x | 1.9x | ||||
Interest Coverage | 4.2x | 4.3x | ||||
Adj Interest Coverage | 4.5x | 4.3x | ||||
Outstanding Shares | 2,100,000,000 | 2,100,000,000 | ||||
Total financial debt as of September 30, 2016 was $2.3 billion plus $1.8 million in letters of credit with maturities of more than 180 days, while cash and cash equivalents totaled $651 million, resulting in net financial debt of $1.66 billion.
The Net Debt / EBITDA ratio was 2.0x at September 30, 2016, while the Interest Coverage was 4.2x. The Net Debt /Adjusted EBITDA ratio was 1.8x and Adjusted Interest Coverage was 4.5x. Adjusted EBITDA in this case excludes the on-time charge accrued in 2Q16 and the one-time benefit net of expenses accrued in 3Q16.
CONSOLIDATED BALANCE SHEET |
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USD in thousands | ||||||
Balance Sheet | Sep 2016 | Dec 2015 | ||||
Total assets | 9,081,770 | 8,669,676 | ||||
Cash and temporary investments | 651,027 | 653,274 | ||||
Receivables | 963,233 | 798,779 | ||||
Inventories | 648,302 | 647,984 | ||||
Others current assets | 384,732 | 151,816 | ||||
Long term assets | 6,434,476 | 6,417,823 | ||||
Total liabilities | 5,070,110 | 4,990,895 | ||||
Current portion of long-term debt | 64,328 | 43,653 | ||||
Suppliers | 1,292,090 | 1,201,021 | ||||
Other current liabilities | 576,014 | 573,887 | ||||
Long-term debt | 2,249,154 | 2,291,422 | ||||
Other long-term liabilities | 888,524 | 880,912 | ||||
Consolidated shareholders' equity |
4,011,660 | 3,678,781 | ||||
Minority shareholders' equity |
888,819 | 776,419 | ||||
Majority shareholders' equity |
3,122,841 | 2,902,362 | ||||
Total liabilities & shareholders' equity | 9,081,770 | 8,669,676 | ||||
Contingent Asset
On April 20th, 2016, an explosion occurred in Pajaritos, where two out of three of PMV’s facilities are located; these two facilities are the VCM and Ethylene plants. There was no damage to the chlorine-caustic soda plant, which is located at another site. The ethylene plant is under a mechanical integrity evaluation, but it appears that no damage has occurred. The VCM plant (Clorados III) is the one that sustained most of the damage, the major economic impact of which was the write-off of the asset and the shutdown of that plant.
Mexichem’s assets including those in PMV are adequately insured at today’s replacement value, while the related non-cash charge was calculated at book value. The Company’s insurance coverage includes: i) environmental responsibility, ii) damage to property, iii) business interruption, iv) liability for damage to third parties, and v) liability of directors and officers.
During the third quarter PMV gathered sufficient information to decide to recognize the account receivable related to insurance coverage of $252 million, therefore PMV recognized $252 million as other income net of $28 million of other expenses totaling $224 million, related to property damage, third party expenses, and expenses incurred under directors’ and officers’ coverage. PMV and Resins, Compounds and Derivatives recognized income of $14 million for business interruption that offset fixed costs that were not absorbed.
PMV has presented its claims to its insurance companies.
PMV together with its shareholders, Mexichem & Pemex, are evaluating several strategic options for the business in the future and depending on the decisions then taken, PMV will evaluate the impacts on the rest of its assets in Pajaritos Complex, reason why the Company adopted a conservative policy with respect to the dollar amount recognized, reflecting the stated cash value (net book value) of the plant as of December 31st 2015 and the business interruption that was accrued as a recovery of fixed costs, even though the insurance policies covers the current replacement value of the plant and in the case of business interruption insurance, the fixed cost plus margin. When the business plan is finalized the exact dollar amount of the account receivable could change.
Contingent Liability
As a consequence of the VCM Plant (Clorados III) incident described in the contingent asset disclosure, PMV is performing an environmental assessment to determine if any pollutants were deposited in areas in or surrounding the facility. Also PMV could be responsible for third party injuries, if any. Based on the information the Company has to date, there is no evidence that there are additional relevant liabilities.
As mention previously, depending on the decision taken by PMV and its shareholders, once the business future is decided, PMV will evaluate the impacts in the rest of its assets in Pajaritos Complex.
CONSOLIDATED INCOME STATEMENT |
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USD mm | Third Quarter | January- September | ||||||||||||||||||||||||||||
INCOME STATEMENT | 2016 | PMV one time event | 2016 w/o one time event | 2015 | % | 2016 | PMV one time event | 2016 w/o one time event | 2015 | % | ||||||||||||||||||||
Net sales | 1,400,267 | - | 1,400,267 | 1,446,397 | -3% | 4,089,655 | - | 4,089,655 | 4,407,866 | -7% | ||||||||||||||||||||
Cost of sales | 1,011,919 | - | 1,011,919 | 1,049,061 | -4% | 2,913,342 | - | 2,913,342 | 3,210,974 | -9% | ||||||||||||||||||||
Gross Profit | 388,348 | - | 388,348 | 397,336 | -2% | 1,176,313 | - | 1,176,313 | 1,196,892 | -2% | ||||||||||||||||||||
Operating expenses | 14,228 | (223,694) | 237,922 | 259,771 | -8% | 813,651 | 61,831 | 751,820 | 796,001 | -6% | ||||||||||||||||||||
Operating Income | 374,120 | 223,694 | 150,426 | 137,565 | 9% | 362,662 | (61,831) | 424,493 | 400,891 | 6% | ||||||||||||||||||||
Financial cost | 50,491 | - | 50,491 | 55,306 | -9% | 135,418 | - | 135,418 | 184,815 | -27% | ||||||||||||||||||||
Equity income of associated entities | 131 | - | 131 | (1,378) | N/A | (3,484) | - | (3,484) | - 873 | 299% | ||||||||||||||||||||
Income from continued operations before income tax | 323,498 | 223,694 | 99,804 | 83,637 | 19% | 230,728 | (61,831) | 292,559 | 216,949 | 35% | ||||||||||||||||||||
Cash tax | 35,906 | - | 35,906 | 45,508 | -21% | 127,717 | - | 127,717 | 128,263 | 0% | ||||||||||||||||||||
Deferred tax | 57,179 | 67,108 | (9,929) | (16,261) | -39% | (47,337) | (5,647) | (41,690) | (47,861) | -13% | ||||||||||||||||||||
Income Tax | 93,085 | 67,108 | 25,977 | 29,247 | -11% | 80,380 | (5,647) | 86,027 | 80,402 | 7% | ||||||||||||||||||||
Income from continued operations | 230,413 | 156,586 | 73,827 | 54,390 | 36% | 150,348 | (56,184) | 206,532 | 136,547 | 51% | ||||||||||||||||||||
Discontinued Operations | (6,573) | - | (6,573) | 43 | N/A | (5,391) | - | (5,391) | (18) | 29850% | ||||||||||||||||||||
Net Consolidated Income | 223,840 | 156,586 | 67,254 | 54,433 | 24% | 144,957 | (56,184) | 201,141 | 136,529 | 47% | ||||||||||||||||||||
Minority Interest | 68,551 | 69,039 | (488) | 413 | N/A | (28,126) | (24,772) | (3,354) | (853) | 293% | ||||||||||||||||||||
Net Majority Income | 155,289 | 87,547 | 67,742 | 54,020 | 25% | 173,083 | (31,413) | 204,496 | 137,382 | 49% | ||||||||||||||||||||
EBITDA | 465,881 | 223,694 | 242,187 | 234,041 | 3% | 636,898 | (61,831) | 698,729 | 697,778 | 0% | ||||||||||||||||||||
OPERATING RESULTS BY BUSINESS GROUP
VINYL Business Group (37% and 31% of Mexichem’s sales (before eliminations) and Adjusted EBITDA, respectively, in 3Q16)
Third Quarter | January - September | |||||||||||||||||
Vinyl | 2016 | 2015 | %Var. | 2016 | 2015 | % Var. | ||||||||||||
Volume (K Tons) | 633 | 647 | -2% | 1,894 | 1,886 | 0% | ||||||||||||
Total Sales* | 537 | 535 | 0% | 1,535 | 1,634 | -6% | ||||||||||||
Operating Income** | 263 | 42 | 532% | 61 | 127 | -52% | ||||||||||||
Adjusted Operating Income | 40 | 42 | -5% | 123 | 127 | -4% | ||||||||||||
EBITDA** | 299 | 79 | 277% | 171 | 239 | -29% | ||||||||||||
Adjusted EBITDA | 75 | 79 | -5% | 233 | 239 | -3% | ||||||||||||
*Intercompany sales were $38 million and $33 million in 3Q16 and 3Q15, respectively. 9M16 and 9M15 intercompany sales were $111 million and $130 million, respectively.
**Includes Ingleside expenses of $6.9 million (YTD 2016) and $2.6 million (YTD 2015). Adjusted operating income and adjusted EBITDA excludes one-time net benefit from PMV of $224 million in 3Q16.
Third Quarter | January - September | |||||||||||||||||
Resins, Compounds & Derivatives | 2016 | 2015 | %Var. | 2016 | 2015 | % Var. | ||||||||||||
Volume (K Tons) | 562 | 535 | 5% | 1,653 | 1,578 | 5% | ||||||||||||
Total Sales* | 523 | 513 | 2% | 1,495 | 1,579 | -5% | ||||||||||||
Operating Income** | 40 | 32 | 23% | 123 | 116 | 6% | ||||||||||||
EBITDA** | 69 | 63 | 10% | 211 | 206 | 3% | ||||||||||||
*Intercompany sales were $45 million and $46 million in 3Q16 and 3Q15, respectively. Of these amounts $7 million and $13 million were invoiced to PMV in 3Q16 and 3Q15. 9M16 and 9M15 intercompany sales were $136 million and $171 million, respectively; of these amounts $25 million and $41 million were invoiced to PMV.
**Includes Ingleside expenses of $6.9 million (YTD 2016) and $2.6 million (YTD 2015).
Third Quarter | January - September | |||||||||||||||||
PMV | 2016 | 2015 | %Var. | 2016 | 2015 | % Var. | ||||||||||||
Total Sales* | 22 | 62 | -65% | 98 | 170 | -43% | ||||||||||||
Operating Income | 224 | 9 | 2314% | -62 | 12 | N/A | ||||||||||||
Adjusted Operating Income** | 0 | 9 | N/A | 0 | 12 | N/A | ||||||||||||
EBITDA | 230 | 16 | 1298% | -40 | 34 | N/A | ||||||||||||
Adjusted EBITDA** | 6 | 16 | -63% | 22 | 34 | -35% | ||||||||||||
* Intercompany sales invoiced to Resins, Compounds and Derivatives were $1 million and $27 million in 3Q16 and 3Q15, respectively. And, as of September 2016 and 2015 were $32 million and $74 million, respectively.
** Adjusted operating income and adjusted EBITDA excludes a net benefit of $224 million in 3Q16.
In 3Q16, the Vinyl Business Group reported a 2% decline in volumes, and slightly above in sales.
Revenues increased by 0.3% to $537 million in 3Q16, slightly above the $535 million reported in 3Q15, driven mainly by higher volumes and slight recovery selling prices.
EBITDA for the Vinyl Business Group was positive $299 million due to the one-time benefit of $224 million in PMV (revenue of $252 million net of $28 million in expenses for the 3Q16). Adjusted EBITDA (excluding PMV’s one-time benefits) decreased 5% to $75 million from $79 million. Adjusted EBITDA margin was 14.0%.
In 3Q16, Resins, Compounds and Derivatives revenues increased 2%, driven by volume which raised 5% YoY mainly due to higher resin demand which included double digit growth in European volumes.
3Q16 EBITDA for Resins, Compounds and Derivatives was $69 million, 10% higher 3Q15, reflecting a resilient operating performance, generating an expansion in EBITDA margin of 98 bps to 12.3% from 13.3%.
In Resins, Compounds and Derivatives, 3Q16 operating income was $40 million (this included one-time benefit of $4.6 million from the recognition of business interruption as a consequence of PMV incident) higher than $32 million reported in 3Q15.
In 3Q16, PMV sales were $22 million, including $21 million from chlorine-caustic soda operations.
In 3Q16, our Vinyl Group reported a one-time benefit of $224 million related to the account receivable accrued of $252 million net of cash expenses of $28 million, that resulted in reported operating income of $224 million compared to operating income of $9 million in the similar year-ago period. The one- time benefit is related to the incident which resulted in a 2Q16 one-time charge of $286 million ($244 million was non-cash charges related to the asset write off of Clorados III (VCM plant), and the rest $42 million were related to other cash expenses). The company adopted a conservative policy with respect to the amount of the benefit, as PMV together with its shareholders, Mexichem & Pemex, are in the process of evaluating several strategic options for the future of this business, and depending on the decisions then taken, PMV will evaluate the impacts on the rest of its assets in Pajaritos Complex. When the business plan is finalized the exact dollar amount of the account receivable could change.
Reported EBITDA in PMV was $230 million in 3Q16 while adjusted EBITDA totaled $6 million, of which $3.4 million came from the chlorine-caustic soda plant.
In the first nine months of 2016, the Vinyl Business Group’s sales were flat YoY even PMV incident. Reported EBITDA was $171 million, while adjusted EBITDA was $233 million implying an expansion of 51 bps to 15.2% margin.
FLUENT Business Group (53% and 48% of Mexichem’s sales (before eliminations) and Adjusted EBITDA, respectively, in 3Q16)
Third Quarter | January - September | |||||||||||||||||
Fluent | 2016 | 2015 | %Var. | 2016 | 2015 | % Var. | ||||||||||||
Sales | 756 | 793 | -5% | 2,221 | 2,412 | -8% | ||||||||||||
Fluent LatAm | 276 | 279 | -1% | 789 | 906 | -13% | ||||||||||||
Fluent Europe | 324 | 342 | -5% | 988 | 1,013 | -2% | ||||||||||||
Fluent US/AMEA | 158 | 175 | -10% | 449 | 500 | -10% | ||||||||||||
Intercompany Eliminations | (2) | (3) | -17% | (5) | (7) | -24% | ||||||||||||
Operating Income | 78 | 81 | -3% | 210 | 202 | 4% | ||||||||||||
EBITDA | 117 | 119 | -2% | 322 | 321 | 0% | ||||||||||||
In 3Q16, the Fluent Business Group’s reported sales declined by $37 million, of which $20 million or 54% represented the appreciation of the U.S. dollar against almost all other global currencies. The remainder was primarily due to lower demand in the U.S. for pressure pipes used in the energy sector. Fluent US has taken actions to diversify its end markets, and its more favorable product mix in the third quarter resulted in higher EBITDA margins, despite lower sales.
3Q15 | In million dollars | 3Q16 | Sub16 | Sub16/2Q15 | |||||||||||
Revenues | Revenues | FX | Total | % Var Comp | |||||||||||
279 | Fluent LatAm | 276 | 5 | 282 | 1% | ||||||||||
342 | Fluent Europe | 324 | 13 | 337 | -1% | ||||||||||
175 | Fluent US/AMEA | 158 | 2 | 160 | -9% | ||||||||||
-3 | Intercompany Eliminations | -2 | - 2 | -17% | |||||||||||
793 | Total | 756 | 20 | 776 | -2% | ||||||||||
On a constant currency base total sales in the Fluent Business Group would have been 2% lower or $776 million from $793 million.
Third quarter reported EBITDA was 2% lower y-o-y mainly due to an EBITDA decline in Europe offset by positive operating performance in our LatAm and US AMEA regions despite lower sales, benefitting from a more favorable mix of higher margin datacom products, and lower raw material costs. Fluent Business Group EBITDA margin expanded 43 bps to 15.4%.
On a constant currency basis, EBITDA increased 2% in 3Q16, implying an EBITDA margin expansion of 60 bps to 15.6% from 15.0% in 3Q15.
In the first nine months of 2016 total reported revenues decreased 8% while on a constant currency basis, revenues were almost flat. This is mainly explained as follows:
9M15 | In million dollars | 9M16 | 9M16/ 9M15 | Sub16 | Sub16/9M15 | |||||||||||||
Revenues | Revenues | % Var Comp | FX | Total | % Var Comp | |||||||||||||
906 | Fluent LatAm | 789 | -13% | 143 | 932 | 3% | ||||||||||||
1,013 | Fluent Europe | 988 | -2% | 30 | 1,019 | 1% | ||||||||||||
500 | Fluent US/AMEA | 449 | -10% | 9 | 458 | -8% | ||||||||||||
-7 | Intercompany Eliminations | -5 | -24% | 0 | - 5 | -24% | ||||||||||||
2,412 | Total | 2,221 | -8% | 183 | 2,404 | 0% | ||||||||||||
Reported EBITDA was flat compared to 9M15 despite a $191 million decline in sales, mainly due to the increased profitability of all the three regional operations, and EBITDA margin was 14.5%, an increase of 119 bps year-on-year.
Exclusive of the US dollar exchange rate effect in Fluent Europe, US/AMEA and LatAm, which totaled $47 million in 9M16, EBITDA would have increased 15% in 2016, implying an EBITDA margin expansion of 204 bps to 15.3% compared to 13.3% in 9M15.
FLUOR BUSINESS GROUP (10% and 25% of Mexichem’s sales (before eliminations) and Adjusted EBITDA, respectively, in 3Q16)
Third Quarter | January - September | |||||||||||||||||
Fluor | 2016 | 2015 | %Var. | 2016 | 2015 | % Var. | ||||||||||||
Sales | 145 | 151 | -4% | 449 | 493 | -9% | ||||||||||||
Operating Income | 44 | 44 | 1% | 129 | 131 | -2% | ||||||||||||
EBITDA | 59 | 60 | -1% | 174 | 182 | -5% | ||||||||||||
In 3Q16 the Fluor Group posted a 4% sales decline, reflecting a 10% decrease in volumes, partially offset by slightly improved prices in our upstream business. We continued to successfully diversify end markets, with cement industry customers accounting for an average of 30% of our metspar volumes in the 3Q16.
The Fluor Business Group’s reported EBITDA margin reached 40.8%, 120 bps higher when compared to 39.6% in 3Q15, and despite lower sales, and operating income was $44 million, an increase of 1%.
Nine month 2016 revenues were $449 million, down 9%, mainly due to weaker pricing of fluorspar together with lower volumes in the first nine months of the year. YTD 2016 EBITDA declined by 5%, or $8 million, to $174 million; however, EBITDA margin expanded 171 bps to 38.7% from 36.9% in 9M15.
RECENT EVENTS
- Today, Mexichem announced that it acquired Gravenhurst Plastics Ltd. (GPL), a Canadian, privately held pipe and plastics manufacturer which in 2015 generated revenues of $15 million. Established in 1968, GPL supplies High Density Polyethylene (HDPE) conduit and inner duct for fiber optics, and building supply products to the Canadian market. Mexichem will consolidate GPL under its Dura-Line brand in the Fluent Business Group.
For all the news please visit the following webpage http://www.mexichem.com/news/
Conference Call Details:
Mexichem will host a conference call to discuss its 3Q16 results on October 27, 2016 at 10:00 am Mexico City / 11:00 NY. To access the call, please dial 001-855-817-7630 (Mexico), or 1-888-349-0106 (United States) or 1-412-902-0131 (International). All callers should dial in a minimum of 15 minutes prior to the start time and ask for the Mexichem conference call.
The call will also be available through an audio only live webcasthttp://services.choruscall.com/links/mexichem161027.html until January 27th, 2017http://services.choruscall.com/links/mexichem150722.html. A replay of the call will be available approximately two hours after the end of the call. The replay can be accessed via Mexichem’s website at www.mexichem.comwww.mexichem.com
RECONCILIATION SUMMARY BY BUSINESS GROUP
Third Quarter 2016 Financial and Operating Highlights
Revenues | EBITDA | EBITDA Margin | Adjusted EBITDA | Adj. EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||
In million dollars | 3Q15 | 3Q16 | %Var. | 3Q15 | 3Q16 | %Var. | 3Q15 | 3Q16 | Var. | 3Q15 | 3Q16 | %Var. | 3Q15 | 3Q16 | Var. | ||||||||||||||||||||||||||||||
Vinyl | 535 | 537 | 0% | 79 | 299 | 277% | 14.8% | 55.7% | 4,086 | 79 | 75 | -5% | 14.8% | 14.0% | - 79 | ||||||||||||||||||||||||||||||
Fluent | 793 | 756 | -5% | 119 | 117 | -2% | 15.0% | 15.4% | 43 | 119 | 117 | -2% | 15.0% | 15.4% | 43 | ||||||||||||||||||||||||||||||
Fluor | 151 | 145 | -4% | 60 | 59 | -1% | 39.6% | 40.8% | 120 | 60 | 59 | -1% | 39.6% | 40.8% | 120 | ||||||||||||||||||||||||||||||
Energy | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Eliminations / Holding | -33 | -39 | 17% | -24 | -10 | -61% | -24 | -10 | -61% | ||||||||||||||||||||||||||||||||||||
Mexichem Consolidated | 1,446 | 1,400 | -3% | 234 | 466 | 99% | 16.2% | 33.3% | 106% | 234 | 242 | 3% | 16.2% | 17.3% | 111 | ||||||||||||||||||||||||||||||
3Q15 | In million dollars | 3Q16 | Sub16 | Sub16/3Q15 | |||||||||||
Revenues | Revenues | FX | Total | % Var Comp | |||||||||||
535 | Vinyl | 537 | 2 | 539 | 1% | ||||||||||
793 | Fluent | 756 | 20 | 776 | -2% | ||||||||||
1,329 | Ethylene (Vinyl + Fluent) | 1,294 | 22 | 1,316 | -1% | ||||||||||
151 | Fluor | 145 | 2 | 147 | -3% | ||||||||||
0 | Energy | 0 | 0 | 0 | |||||||||||
-33 | Eliminations/ Holding | -39 | 0 | - 39 | 17% | ||||||||||
1,446 | Total | 1,400 | 24 | 1,424 | -2% | ||||||||||
3Q15 | In million dollars | 3Q16 | 3Q16 | Sub16 | Sub Adj 16 | Sub16/2Q15 |
Sub Adj 16/2Q15 |
||||||||||||||||||
EBITDA | EBITDA | Adj. EBITDA | FX | Total | Total | % Var Comp | % Var Comp | ||||||||||||||||||
79 | Vinyl | 299 | 75 | 0 | 299 | 76 | 277% | -5% | |||||||||||||||||
119 | Fluent | 117 | 117 | 4 | 121 | 121 | 2% | 2% | |||||||||||||||||
198 | Ethylene (Vinyl + Fluent) | 416 | 192 | 4.5 | 420 | 197 | 112% | -1% | |||||||||||||||||
60 | Fluor | 59 | 59 | 0 | 59 | 59 | -1% | -1% | |||||||||||||||||
0 | Energy | 0 | 0 | 0 | 0 | 0 | 0% | ||||||||||||||||||
-24 | Eliminations/ Holding | -10 | -10 | 0 | - 10 | - 10 | -61% | -61% | |||||||||||||||||
234 | Total | 466 | 242 | 4 | 470 | 247 | 101% | 5% |
First Nine Months 2016 Financial and Operating Highlights |
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Revenues | EBITDA | EBITDA Margin | Adjusted EBITDA | Adj. EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||
In million dollars | 9M15 | 9M16 | %Var. | 9M15 | 9M16 | %Var. | 9M15 | 9M16 | Var. | 9M15 | 9M16 | %Var. | 9M15 | 9M16 | Var. | ||||||||||||||||||||||||||||||
Vinyl | 1,634 | 1,535 | -6% | 239 | 171 | -29% | 14.6% | 11.1% | - 352 | 239 | 233 | -3% | 14.6% | 15.2% | 51 | ||||||||||||||||||||||||||||||
Fluent | 2,412 | 2,221 | -8% | 321 | 322 | 0% | 13.3% | 14.5% | 119 | 321 | 322 | 0% | 13.3% | 14.5% | 119 | ||||||||||||||||||||||||||||||
Fluor | 493 | 449 | -9% | 182 | 174 | -5% | 36.9% | 38.7% | 171 | 182 | 174 | -5% | 36.9% | 38.7% | 171 | ||||||||||||||||||||||||||||||
Energy | 0 | 1 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||
Eliminations / Holding | -130 | -117 | -10% | -44 | -30 | -32% | -44 | -30 | -32% | ||||||||||||||||||||||||||||||||||||
Mexichem Consolidated | 4,408 | 4,090 | -7% | 698 | 637 | -9% | 15.8% | 15.6% | -26 | 698 | 699 | 0% | 15.8% | 17.1% | 125 | ||||||||||||||||||||||||||||||
9M15 | In million dollars | 9M16 | Sub16 | Sub16/9M15 | |||||||||||
Revenues | Revenues | FX | Total | % Var Comp | |||||||||||
1,634 | Vinyl | 1,535 | 6 | 1,541 | -6% | ||||||||||
2,412 | Fluent | 2,221 | 183 | 2,404 | 0% | ||||||||||
4,046 | Ethylene (Vinyl + Fluent) | 3,756 | 188 | 3,945 | -2% | ||||||||||
493 | Fluor | 449 | 3 | 453 | -8% | ||||||||||
0 | Energy | 1 | 0 | 1 | |||||||||||
-130 | Eliminations/ Holding | -117 | 0 | - 117 | -10% | ||||||||||
4,408 | Total | 4,090 | 192 | 4,282 | -3% | ||||||||||
9M15 | In million dollars | 9M16 | 9M16 | Sub16 | Sub Adj 16 | Sub16/9M15 |
Sub Adj 16/9M15 |
|||||||||||||||||
EBITDA | EBITDA | Adj. EBITDA | FX | Total | Total | % Var Comp | % Var Comp | |||||||||||||||||
239 | Vinyl | 171 | 233 | 1 | 172 | 233 | -28% | -2% | ||||||||||||||||
321 | Fluent | 322 | 322 | 47 | 369 | 369 | 15% | 15% | ||||||||||||||||
560 | Ethylene (Vinyl + Fluent) | 492 | 554 | 48 | 540 | 602 | -3% | 8% | ||||||||||||||||
182 | Fluor | 174 | 174 | 0 | 173 | 173 | -5% | -5% | ||||||||||||||||
0 | Energy | 1 | 1 | 1 | 1 | |||||||||||||||||||
-44 | Eliminations/ Holding | -30 | -30 | - 30 | - 30 | -32% | -32% | |||||||||||||||||
698 | Total | 637 | 699 | 48 | 685 | 746 | -2% | 7% | ||||||||||||||||
ABOUT MEXICHEM
Mexichem is one of the world’s largest chemical and petrochemical companies. A leader in the manufacture and supply of plastic piping, it contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, datacom and water cycle management. With operations in over 30 countries worldwide and more than 18,000 employees, Mexichem has annual revenues of US$5.7 billion and has been traded on the Mexican Stock Exchange for more than 30 years.
Forward-looking Statements
In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. The final results may be materially different from current expectations due to several factors, which include, but are not limited to, global and local changes in politics, the economy, business, competition, market and regulatory factors, cyclical trends in relevant sectors; as well as other factors that are highlighted under the title “Risk Factors” on the annual report submitted by Mexichem to the Mexican National Banking and Securities Commission (CNBV). The forward-looking statements included herein represent Mexichem’s views as of the date of this press release. Mexichem undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.”
Mexichem has implemented a Code of Ethics that rules its relationships with its employees, clients, suppliers and general groups. Mexichem’s Code of Ethics is available for consulting in the following link: http://www.mexichem.com/Codigo_de_etica.html Additionally, according to the terms contained in the Securities Exchange Act No 42, Mexichem Audit Committee established a mechanism of contact, which allows that any person that knows the unfulfilment of operational and accounting records guidelines and lack of internal controls of the Code of Ethics, from the Company itself or from the subsidiaries that this controls, file a complaint which is anonymously guaranteed. The whistleblower program is facilitated by a third party. The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem and contact e-mail is mexichem@ethic-line.com. Mexichem’s Audit Committee will be notified of all complaints for immediate investigation.
INDEPENDENT ANALYSTS
Currently, the following investment firms have analysts who cover Mexichem:
1. Actinver
2. -Bank of America Merrill Lynch
3. -Banorte-Ixe
4. -Barclays
5. -BBVA Bancomer
6. -BTG Pactual
7. -Citigroup
8. -Credit Suisse
9. -GBM-Grupo Bursátil Mexicano
10. -Grupo Santander
11. -HSBC
12. -Intercam
13. -Invex Casa de Bolsa
14. -Interacciones
15. -ITAU BBA
16. -JP Morgan
17. -Morgan Stanley
18. -Monex
19. -UBS
20. -Vector
INTERNAL CONTROL
Mexichem’s bylaws provide the existence of the Audit and Corporate Practices Committees, intermediate corporate organs constituted in agreement with the applicable law to assist the Board of Directors to carry on their functions. Through these committees and the external auditor it is given reasonable safety that transactions and company’s acts are executed and registered in accordance with the terms and parameters set by the Board and directives of Mexichem, the applicable law and different general guidelines, criterion and IFRS (International Financial Reporting Standards).
APPENDIX 1: RECONCILIATION SUMMARY OF QUARTERLY RESULTS 3Q16/3Q15 RELATED TO THE RESTRUCTURING PROCESS IN THE FLUOR BUSINESS GROUP
USD in thousands | First Quarter | Second Quarter | Third Quarter | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | Var | ||||||||||||||||||||||
Net Sales | 1,262,383 | 1,437,475 | 1,427,005 | 1,516,719 | 1,400,267 | 1,442,937 | -3 | % | ||||||||||||||||||||
Cost of Sales | 903,023 | 1,068,626 | 998,400 | 1,081,297 | 1,011,919 | 1,042,481 | -3 | % | ||||||||||||||||||||
Gross Profit | 359,360 | 368,849 | 428,605 | 435,422 | 388,348 | 400,456 | -3 | % | ||||||||||||||||||||
Operating Expenses | 250,088 | 276,452 | 549,336 | 260,445 | 14,228 | 259,605 | -95 | % | ||||||||||||||||||||
Operating Income | 109,272 | 92,397 | (120,731 | ) | 174,977 | 374,120 | 140,851 | 166 | % | |||||||||||||||||||
Financial Cost | 43,411 | 67,932 | 41,516 | 61,575 | 50,491 | 55,307 | -9 | % | ||||||||||||||||||||
Equity in income of associated companies | (927 | ) | 727 | (2,688 | ) | (222 | ) | 131 | (1,378 | ) | -110 | % | ||||||||||||||||
Income from continuing operations before income tax | 66,788 | 23,738 | (159,559 | ) | 113,624 | 323,498 | 86,922 | 272 | % | |||||||||||||||||||
Income tax | 17,388 | 7,943 | (30,093 | ) | 43,211 | 93,085 | 29,248 | 218 | % | |||||||||||||||||||
Income from continuing operations after income tax | 49,400 | 15,795 | (129,466 | ) | 70,413 | 230,413 | 57,674 | 300 | % | |||||||||||||||||||
Discontinued operations | 583 | (1,662 | ) | 599 | (2,446 | ) | (6,573 | ) | (3,241 | ) | 103 | % | ||||||||||||||||
Consolidated net income | 49,983 | 14,133 | (128,867 | ) | 67,967 | 223,840 | 54,433 | 311 | % | |||||||||||||||||||
Minority Stock holders | (610 | ) | (4,837 | ) | (96,067 | ) | 3,571 | 68,551 | 413 | 16498 | % | |||||||||||||||||
Majority stock holders | 50,593 | 18,970 | (32,800 | ) | 64,396 | 155,289 | 54,020 | 187 | % | |||||||||||||||||||
EBITDA | 200,418 | 199,007 | (29,401 | ) | 266,320 | 465,881 | 235,883 | 98 | % | |||||||||||||||||||
FLUOR BUSINESS GROUP INCOME STATEMENT USD in thousands |
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | ||||||||||||||||||||||||||||
2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | ||||||||||||||||||||||
Net Sales | 139,376 | 160,548 | -13 | % | 164,829 | 173,684 | -5 | % | 145,251 | 147,537 | -2 | % | ||||||||||||||||||
Operating Income | 33,375 | 41,550 | -20 | % | 51,399 | 49,853 | 3 | % | 44,368 | 47,332 | -6 | % | ||||||||||||||||||
EBITDA | 48,562 | 57,924 | -16 | % | 65,903 | 65,796 | 0 | % | 59,283 | 61,662 | -4 | % | ||||||||||||||||||
CONSOLIDATED BALANCE SHEET |
||||||||||||||||||
March | June | September | ||||||||||||||||
USD in thousands | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Total Assets | 8,840,462 | 8,334,563 | 8,762,034 | 8,638,262 | 9,081,771 | 8,545,695 | ||||||||||||
Cash and temporary investments | 586,462 | 403,207 | 661,521 | 603,331 | 651,027 | 537,252 | ||||||||||||
Receivables | 896,554 | 1,018,378 | 928,719 | 1,041,746 | 963,233 | 972,386 | ||||||||||||
Inventories | 660,804 | 716,009 | 644,683 | 713,823 | 648,302 | 673,696 | ||||||||||||
Others current assets | 150,362 | 254,480 | 131,690 | 202,305 | 547,257 | 195,956 | ||||||||||||
Long term assets | 6,546,280 | 5,942,489 | 6,395,421 | 6,077,057 | 6,434,477 | 6,166,405 | ||||||||||||
Total liabilities | 5,040,949 | 4,928,943 | 5,004,523 | 5,102,899 | 5,070,110 | 4,952,846 | ||||||||||||
Current liabilities | 1,829,931 | 1,646,637 | 1,925,826 | 1,761,521 | 1,932,432 | 1,703,869 | ||||||||||||
Long term liabilities | 3,211,018 | 3,282,306 | 3,078,697 | 3,341,378 | 3,137,678 | 3,248,977 | ||||||||||||
Consolidated shareholders'equity | 3,799,513 | 3,405,620 | 3,757,511 | 3,535,363 | 4,011,660 | 3,592,849 | ||||||||||||
Minority shareholders'equity | 816,343 | 499,457 | 775,063 | 601,672 | 888,819 | 688,791 | ||||||||||||
Majority shareholders'equity | 2,983,170 | 2,906,163 | 2,982,448 | 2,933,691 | 3,122,841 | 2,904,058 | ||||||||||||
ANNEX 2: SUMMARY RECONCILIATION OF INFORMATION BY SEGMENT
Reclassifications - Comparative information by segment reported in Q3 2016 interim financial notes (Note 12) for the year ended December 31, 2015, has been reclassified retrospectively to conform with the presentation used as of September 30 2016, to present the elimination of investment in subsidiaries by business group under the heading of other assets, which were previously presented under the heading of consolidated eliminations column. This reclassification does not impact the consolidated assets amount.
As of September 30, 2016 | ||||||||||||||||||||||
Vinyl | Energy | Fluor | Fluent | Holding | Eliminations | Consolidated | ||||||||||||||||
Current Assets | ||||||||||||||||||||||
Cash and Cash equivalents | 98,624 | 93 | 86,344 | 335,830 | 130,136 | - | 651,027 | |||||||||||||||
Net Account Receivable | 550,812 | 23 | 100,427 | 623,009 | 2,575 | - | 1,276,846 | |||||||||||||||
Other current assets | 257,490 | 1,684 | 332,164 | 526,615 | 450,091 | (863,897 | ) | 704,147 | ||||||||||||||
Assets held for sale | - | - | 10,887 | 4,387 | - | - | 15,274 | |||||||||||||||
Total Current Assets | 906,926 | 1,800 | 529,822 | 1,489,841 | 582,802 | (863,897 | ) | 2,647,294 | ||||||||||||||
Property, plant and equipment | 2,644,612 | 4,304 | 395,568 | 1,166,623 | 1,594 | - | 4,212,701 | |||||||||||||||
Net other assets | 606,068 | - | 168,451 | 1,436,539 | 773,796 | (763,079 | ) | 2,221,775 | ||||||||||||||
Total Assets | 4,157,606 | 6,104 | 1,093,841 | 4,093,003 | 1,358,192 | (1,626,976 | ) | 9,081,770 | ||||||||||||||
Current Liabilities | ||||||||||||||||||||||
Bank loans and current portion of long-term debt | 20,415 | - | 26,429 | 17,484 | - | - | 64,328 | |||||||||||||||
Suppliers and letters of credit of suppliers | 752,369 | - | 33,672 | 502,785 | 3,264 | - | 1,292,090 | |||||||||||||||
Other current liabilities | 521,999 | 858 | 22,178 | 469,742 | 410,817 | (867,183 | ) | 558,411 | ||||||||||||||
Liabilities associated with asset held for sale | - | - | 17,603 | - | - | - | 17,603 | |||||||||||||||
Total Current Liabilities | 1,294,783 | 858 | 99,882 | 990,011 | 414,081 | (867,183 | ) | 1,932,432 | ||||||||||||||
Bank loans and long-term debt | 91,784 | - | 54,735 | 3,510 | 2,099,125 | - | 2,249,154 | |||||||||||||||
Long-term other liabilities | 503,080 | 129 | 204,974 | 662,645 | 160,510 | (642,814 | ) | 888,524 | ||||||||||||||
Total Liabilities | 1,889,647 | 987 | 359,591 | 1,656,166 | 2,673,716 | (1,509,997 | ) | 5,070,110 | ||||||||||||||
December 31st, 2015 | |||||||||||||||||||||||||||
Vinyl | Energy | Fluor | Fluent | Holding | Eliminations | Consolidated | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||||||||
Cash and Cash equivalents | 128,778 | 77 | 98,071 | 254,181 | 172,167 | - | 653,274 | ||||||||||||||||||||
Net Account Receivable | 283,084 | (5 | ) | 125,863 | 484,233 | (8,831 | ) | - | 884,344 | ||||||||||||||||||
Other current assets | 269,751 | 307 | 349,241 | 423,497 | 444,090 | (789,156 | ) | 697,730 | |||||||||||||||||||
Assets held for sale | - | - | 11,533 | 4,972 | - | - | 16,505 | ||||||||||||||||||||
Total Current Assets | 681,613 | 379 | 584,708 | 1,166,883 | 607,426 | (789,156 | ) | 2,251,853 | |||||||||||||||||||
Property, plant and equipment | 2,620,435 | 5,078 | 420,104 | 1,157,053 | 257 | - | 4,202,927 | ||||||||||||||||||||
Net other assets | 620,781 | - | 179,868 | 1,440,082 | 637,391 | (663,226 | ) | 2,214,896 | |||||||||||||||||||
Total Assets | 3,922,829 | 5,457 | 1,184,680 | 3,764,018 | 1,245,074 | (1,452,382 | ) | 8,669,676 | |||||||||||||||||||
Elimination reclasification | (1,779,917 | ) | (4,802 | ) | (129,858 | ) | (268,442 | ) | (3,329,714 | ) | 5,512,733 | - | |||||||||||||||
Total Assets | 2,142,912 | 655 | 1,054,822 | 3,495,576 | (2,084,640 | ) | 4,060,351 | 8,669,676 | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||||
Bank loans and current portion of long-term debt | 16,103 | - | 17,879 | 9,671 | - | - | 43,653 | ||||||||||||||||||||
Suppliers and letters of credit of suppliers | 709,595 | 1 | 38,957 | 451,244 | 1,224 | - | 1,201,021 | ||||||||||||||||||||
Other current liabilities | 490,786 | 156 | 67,111 | 374,147 | 449,357 | (827,287 | ) | 554,270 | |||||||||||||||||||
Liabilities associated with asset held for sale | - | - | 19,617 | - | - | - | 19,617 | ||||||||||||||||||||
Total Current Liabilities | 1,216,484 | 157 | 143,564 | 835,062 | 450,581 | (827,287 | ) | 1,818,561 | |||||||||||||||||||
Bank loans and long-term debt | 83,445 | - | 84,320 | 5,771 | 2,117,886 | - | 2,291,422 | ||||||||||||||||||||
Long-term other liabilities | 496,332 | 91 | 209,364 | 750,607 | 71,596 | (647,078 | ) | 880,912 | |||||||||||||||||||
Total Liabilities | 1,796,261 | 248 | 437,248 | 1,591,440 | 2,640,063 | (1,474,365 | ) | 4,990,895 | |||||||||||||||||||