Orbia Advance Corporation released unaudited results for the fourth quarter and full year of 2023. The copmany delivered EBITDA of US$ 226 million for the fourth quarter of 2023 and US$ 1.46 billion for the full year 2023, in line with recent guidance, demonstrating its resilience and ability to manage through a challenging market environment.

Market conditions in the construction, infrastructure and capital investment sectors remained weak due to continued high interest rates and lower demand in China. Despite these pressures, for both the quarter and the year, Orbia maintained strong operating cash flows and a solid balance sheet.

During Q4 2023, Orbia’s net revenues of US$ 1.8 billion decreased 16%, driven by lower sales in Polymer Solutions, Connectivity Solutions and Building & Infrastructure. EBITDA of US$ 226 million decreased 27%, driven by lower volumes and prices in certain segments, partially offset by higher profitability in Precision Agriculture and Building & Infrastructure. Meanwhile, operating Cash Flow of $328 million decreased by $227 million due to lower EBITDA, partially offset by effective working capital management.

For Full-Year 2023, Orbia’s net revenues of US$ 8.2 billion decreased 15%, with lower sales in Polymer Solutions, Building & Infrastructure, and Connectivity Solutions, partially offset by higher sales in Fluor & Energy Materials. EBITDA of $1.46 billion decreased 24%, driven by lower volumes and prices, partially offset by higher profitability in Fluor & Energy Materials. Operating Cash Flow of $931 million decreased 16%, driven by lower EBITDA and partially offset by effective working capital management.

 “We entered 2023 cautiously optimistic, with good momentum in certain business groups. By the end of the second quarter, markets had softened in the global industrial and construction sectors due to prolonged high interest rates and compounded by market weakness in China. In response, we focused on what we could control: our operational, fiscal and commercial discipline and rigorous capital management. Supported by these actions, we continued to position the business for stronger performance once the market recovers,” said Sameer Bharadwaj, CEO of Orbia.

Bharadwaj continued, “Despite these headwinds, I’m proud of the progress we made on strategic and growth initiatives in 2023. We finalized a joint venture agreement with Syensqo (formerly Solvay) to create the largest polyvinylidene fluoride (PVDF) production facilities for battery materials in North America as well as a technology licensing agreement with Kanto Denka Kogyo for lithium hexafluorophosphate (LiPF6), a critical lithium-ion electrolyte salt. We also completed multiple capacity expansion and efficiency improvement projects across our business groups and are continuing to drive cross-business integration and portfolio expansions. As we look toward the near future, we will continue to focus on operational discipline, with performance, cost management and cash generation top-of-mind. We will also continue to execute on high value growth opportunities across our core industries while maintaining a strong balance sheet.”