Alpek’s Renewable Energy Push and Projected Growth
Alpek, a petrochemical business recently spun off from the Mexican conglomerate Alfa, anticipates significant growth in its renewable energy sector through natural gas. This expansion is expected to reflect in their profits over the next two years, potentially contributing double-digit growth and becoming another segment of their business mix by 2026.
Following a challenging 2024 marked by negative results that extended into the first quarter of 2025, Alpek unveiled plans to expand its natural gas business, operating under the name NEG Natural since 2018, into Brazil. This move forms part of their long-term business strategy’s four pillars.
Financial Performance
Alpek’s operating cash flow decreased by 6.3% in the reported period compared to the first quarter of 2024, with a smaller-than-expected 4.2% decline from analysts’ consensus.
Amazon’s Expansion of Pickup Points in Brazil
Amazon announced on Wednesday that customers in Brazil can now choose from over 532 pickup points for their purchases, with plans to exceed 3,000 by year-end. These “Amazon Pickup Points” include stores, markets, and pharmacies collaborating with transport company Jadlog.
Toyota’s Investment in Buffalo Plant
Toyota Motor will invest $88 million in its Buffalo, West Virginia engine plant to boost hybrid vehicle production.
The investment will focus on hybrid transaxle assembly, with production expected to commence by late 2026, according to the company’s statement. This component is anticipated to enhance Toyota and Lexus models assembled in the US.
The total investment now surpasses $2.8 billion, ensuring job stability for over 2,000 workers, as per Toyota.
Bancolombia’s Parent Company to Repurchase Shares
Grupo Cibest, the newly formed holding company resulting from Bancolombia’s integration with its subsidiaries, plans to repurchase $300 million worth of shares once shareholder approvals are secured, likely in June.
Grupo Cibest’s establishment aims to optimize the conglomerate’s businesses, strengthen capital allocation, and improve value creation capabilities. This includes share repurchases, currently not allowed for Colombian banks.
Grupo Cibest’s ordinary and preferred shares will trade on the Colombian Stock Exchange, while its preferred shares will trade on the New York Stock Exchange via American Depository Certificates (ADCs), replacing Bancolombia’s direct listings.
Key Questions and Answers
- What is Alpek’s growth strategy? Alpek plans to expand its renewable energy sector through natural gas, anticipating double-digit growth and integrating it into their business mix by 2026.
- How many pickup points does Amazon offer in Brazil? Amazon currently has over 532 pickup points in Brazil, with plans to exceed 3,000 by year-end.
- What is Toyota’s investment in its Buffalo plant for? Toyota will invest $88 million in its Buffalo, West Virginia engine plant to boost hybrid vehicle production, focusing on hybrid transaxle assembly.
- Why is Grupo Cibest repurchasing shares? Grupo Cibest aims to optimize its conglomerate’s businesses, strengthen capital allocation, and improve value creation capabilities, including share repurchases, which are currently not allowed for Colombian banks.
