Orbia’s Confident Desleveraging Efforts Amid Market Challenges
Orbia, a company specializing in creating solutions for various industries such as petrochemicals, infrastructure, and agriculture, expressed confidence in achieving its goal of reducing leverage this year. Despite market conditions leading to a first-quarter performance that prompted a downward revision of its operating cash flow estimates for 2025, Orbia remains optimistic.
Orbia’s leverage ratio stood at 3.67 times debt-to-operating cash flow in the first quarter, up from 3.3 times in the same period last year. This increase was attributed to a $149 million decrease in cash and cash equivalents, a $60 million rise in total debt, and a $55 million drop in twelve-month operating cash flow.
To tackle this, Orbia plans to continue its deleveraging strategy, which includes reducing costs by $250 million, generating $150 million from growth projects, and raising $150 million through the divestment of non-strategic assets.
Grupo Aeroportuario del Pacífico (GAP) Approves Dividend Payment
Grupo Aeroportuario del Pacífico (GAP), an airport manager in Mexico and Jamaica, announced that its shareholders’ meeting approved the payment of a dividend amounting to 18,864 million 285,272 pesos or approximately 16.84 pesos per share.
The dividend will be paid in one or more installments within a 12-month period starting April 24.
At a yield of 4.2%, based on GAP’s closing price of 397.41 pesos per share on April 24 at the Mexican Stock Exchange, this dividend presents an attractive opportunity for investors.
Shareholders also approved a maximum amount of 2.5 billion pesos for the share buyback program over a 12-month period, which began on April 24.
Servicios Corporativos Javer’s CNBV Approval for Deslisting
Servicios Corporativos Javer, one of Mexico’s leading residential developers, reported that the National Banking and Securities Commission (CNBV) approved the cancellation of its stock registration for delisting from the Mexican Stock Exchange.
This cancellation of shares and delisting from the BMV was approved by the CNBV on April 22, following Javer’s acquisition by competitor Vinte in December of the previous year.
Javer and Vinte Integral Homes signed an irrevocable trust agreement for administration and payment with Banco Invex to secure the necessary funds for acquiring 132,727 Javer shares still listed on the Mexican Stock Exchange at 14.94 pesos each.
Oxxo’s Spin Partners with Felix for Digital Remittance Services
Spin, the digital wallet of convenience stores Oxxo, has entered into a partnership with Felix, a platform specializing in digital remittance sending and receiving, to facilitate money transfers from the United States.
Oxxo’s customers can use this service by sharing a unique link, automatically generated via WhatsApp, with their US-based senders.
According to the National Banking and Securities Commission, remittances reached $63 billion in 2023. This year, the value of remittances is projected to surpass $65 billion.
Key Questions and Answers
- What is Orbia and why is its deleveraging important? Orbia is a company providing solutions for various industries. Its deleveraging efforts aim to reduce financial leverage, which is crucial for maintaining financial stability and attracting investors.
- What dividend amount did GAP approve, and what is the yield? GAP approved a dividend of approximately 16.84 pesos per share, offering a yield of 4.2% based on the closing price of 397.41 pesos per share on April 24.
- Why did Javer get approved for delisting, and what’s the partnership with Vinte about? Javer was approved for delisting following its acquisition by Vinte. The partnership with Vinte Integral Homes aims to secure funds for acquiring Javer shares still listed on the Mexican Stock Exchange.
- How does Oxxo’s Spin facilitate money transfers from the US? Customers can share a unique WhatsApp link with their US-based senders to use Oxxo’s Spin for digital remittance services.
- What are the projected remittance values for 2024? Remittances are expected to reach approximately $65 billion in 2024, up from $63 billion in 2023.
