Good morning, and welcome to Alpek's third quarter 2022 earnings webcast. I am Antón Fernández, Alpek IR, and today I am happy to be joined by our CEO, Pepe Valdez, and our CFO, José Carlos Pons. This presentation is divided into two parts. First, Pepe and José Carlos will comment on Alpek's third quarter performance, recent events, and our outlook for the remaining months of the year. Afterwards, we'll move on to Q&A. Please note that the information discussed today may include forward-looking statements regarding the company, future financial performance, and prospects, which are subject to certain risks and uncertainties. Actual results may differ materially, and the company cautions the market not to rely unduly on these forward-looking statements. Alpek undertakes no obligation to publicly update or revise any forward-looking statements, whether it's a result of new information, future events, or otherwise.
I'd like to remind everyone that today's webcast is being recorded and will be available on our website at alpek.com. I will now turn the call over to Pepe.
Thank you, Antón. Good morning, everyone, and thank you for joining us today. I am very pleased to mention that in these last few months, Alpek had yet another successful quarter. Our third quarter 2022 was the first quarter in which the new PET sheet and business and resin business located in Oman was fully consolidated, and we are very pleased with the seamless transition thus far. We have already seen synergies between this and our existing business, and we look forward to continuing to integrate best practices towards the future. From a financial perspective, this new business has experienced strong results, leading Alpek towards the highest quarterly comparable EBITDA in its history. Let's start off by reviewing the main topics we will cover today.
First, Alpek financial performance was slightly above our expectations for the third quarter, which José Carlos will review in greater detail later in this presentation. We will discuss Alpek's progress towards product circularity and outlook for the rest of the year. Let me provide some context for the results. The quarter was marked by a tighter economic environment and elevated energy prices, which primarily affected conversion costs in the United States, Mexico, and United Kingdom. At the same time, Asian integrated polyester reference margin averaged $400 per ton for the quarter, higher than expected and only 2% lower than in the previous quarter, with the spread between Chinese and Asian margins narrowing to $77 per ton. However, it's worth noting that reference margin have begun to normalize, reaching an average of $356 per ton in September.
Meanwhile, polypropylene reference margins declined to an average of $0.34 per pound, 13% lower quarter-over-quarter, mainly due to weakening demand towards the end of the quarter, leading to higher inventory levels in the industry. Second, an addition of polypropylene capacity that is coming in in North America. Also in North America, EPS average reference margins remained strong during the third quarter. At this point, José Carlos will take over and develop into more detail regarding the specific impact these changes had on the financial results.
Thanks, Pepe. Thank you all for being here with us today. I would like to highlight some of Alpek's main achievements during the quarter. Overall volume increased to 1.36 million tons. We reached the highest ever quarterly comparable EBITDA of $424 million, with both the polyester and Plastics & Chemicals segments posting their best figures ever as well. Levers remain at 1.2x. Delving deeper into volume, Alpek reached 1.36 million tons in this period, 8% higher than in the previous quarter, largely due to the recently incorporated PET sheet and resin business. In the polyester segment, volume was 1.1 million tons, 10% higher quarter-on-quarter.
In Plastics and Chemicals, volume was 2% lower quarter-over-quarter due to the fact that there was a slight decline in polypropylene demand and a maintenance at one of our PP's facilities. Moving on to raw material price dynamics. Average spot crude oil price decreased to $99 per barrel, 12% lower than in the previous quarter, largely due to a tighter macroeconomic environment. U.S. reference paraxylene prices decreased by 18%, in line with crude oil. In plastics and chemicals, propylene prices declined, averaging $0.47 per pound, a 23% decrease when compared to the second quarter. Switching over to the EBITDA breakdown for the quarter, we can see that overall comparable EBITDA reached a new high of $424 million.
This was 15% higher than in the previous quarter, primarily due to better than expected margins for PET and EPS and the newly incorporated volume from the PET business. Meanwhile, reported EBITDA was $306 million. 40% lower quarter-over-quarter. These results included a non-cash inventory loss of $70 million and a negative carry-forward effect of $46 million. If we look at results by key segments, polyester comparable EBITDA reached $261 million, 20% higher quarter-over-quarter, and 144% higher year-over-year, making this the strongest quarter ever for this segment. This was due to solid volume demand and the resiliency of the Asian polyester reference margins, which remained higher than expected, averaging $400 per ton, 26% higher year-over-year.
In plastics and chemicals, comparable EBITDA set a new quarterly record of $158 million, an 8% increase quarter-on-quarter and a 28% year-on-year. This was mainly due to the improvement in EPS business. With regards to free cash flow generation, net working capital investment increased by $111 million, yet at lower levels than the previous quarter. Largely due to declining raw material prices during the quarter. CapEx totaled $93 million and was mainly allocated towards the scheduled maintenance, as well as a portion of CCP's construction. This all resulted in negative free cash flow of $6 million.
Finally, Alpek's net debt increased to $1.8 billion, and last twelve months' EBITDA increased to $1.54 billion, resulting in a leverage ratio of 1.2x net debt to EBITDA. That concludes my comments. Thank you for your attention. I will now turn the call back to Pepe.
Thank you, José Carlos. Let us review some recent events. As per the press release distributed this past August, Alpek announced that its expandable styrenic subsidiary joined Cyclyx International, a consortium-based company that focuses on establishing a circular pathway for plastic recycling. Through predictive algorithms and artificial intelligence, Alpek gains access to custom feedstock batches from waste with the necessary chemical and physical properties to ensure their recyclability. Having more feedstock available will significantly support Alpek's EPS projected recycling capacity to achieve its circularity target of increasing its recycling content in select products to at least 30% by 2030. It is worth noting that Alpek's EPS production is primarily consumed for long-term usage, such as in the construction industry, due to its thermal insulation properties, which seek to reduce the carbon footprint for homes and buildings.
However, for the short term or the products that have short-term usage, which represent approximately 35% of the sales volume, the company continues to establish its role as a leading recycler, similar than with PET, now through growth in expandable styrenics recycling. Finally, regarding the outlook for the remaining months of the year, the company expects continued normalization for PET as well as polypropylene and EPS margins. Volume for both segment is expected to remain relatively stable, only affected by the usual demand seasonality, which is characteristic during the fourth quarter. Additionally, for PET, we expect inventory reductions from some of our customers. Meanwhile, ocean freight prices are expected to continue normalizing towards the end of the year.
Moving the aforementioned as well as the incorporation of our new PET business and the results we have witnessed so far, Alpek expects to be in line with its revised guidance figures. As always, I would like to thank our team, our customers, and our suppliers for supporting Alpek in reaching new heights. I would also like to thank you, our audience, for your attention here today. I will now turn the call back to Anton to open the webcast for Q&A.
Thank you, Pepe. At this time, we will now take your questions. To ask your question live, we'll ask to raise your hand virtually. We'll call on participants in the order that hands are raised. Alternatively, you may also type your questions through the Q&A function. We will attempt to uncover as many questions as time allows. Our first question comes from Alejandro Zamacona from Credit Suisse. Hi, Alejandro, how are you? Please proceed with your question.
Hi, Antón. Thank you. Hi, Pepe, José Carlos. Thank you for the call. Just a quick question regarding the PET contract negotiations. Amid the latest trends in freight rates and the recent slight decline in PET margins for the quarter, what are you expecting for next year's negotiations? If you can remind us the timing of these negotiations will be helpful. Thank you.
I would say that certainly in some of the markets that we serve, the freight rates have an important impact or consideration. This is, you know, for us, mostly in, I guess, U.K. and in South America. Those are the regions where the freight rates have a more immediate impact in our prices. But basically, however, we do have some formulas that take that into account. We don't probably have to change many things. Yeah, the reduction in freight will have some impact in our margins in those regions at the end of the day.
In the case of North America, as you know, most of our business is contracted on the basis of cost plus. And that cost plus has nothing to do with freight rates from Asia. In the case of North America, we are not expecting any major change as a result of this ocean freight rate reductions.
Okay. Thank you. My second question, if I may, in terms of the dividends, can you share any color on the potential extraordinary dividend, the timing, amount, and the rationale behind this potential extraordinary dividend?
I think, Alejandro, what I can share is that the management will propose to the board an extraordinary dividend in the next board meeting, which is early next week. Of course, the board will have the final decision at the end. I would say, I think it's, you know, it should be an important dividend and it will most likely be paid in November this year.
Okay. Thank you, Pepe.
You're welcome.
Thank you, Alejandro. Our next questions come from Jacob Kim from Scotiabank. Hi, Jacob. Please proceed with your question.
Go for it, Jacob.
Okay. Our next questions come from Luiz Carvalho from UBS. Hi, Luiz. Please proceed with your question.
Hi, Pepe, José Carlos, Antón, Alejandra. Thanks for taking the question, and congrats on the results. If I may have three questions here. Pepe, I would like to come back on the capital allocation, which is kind of a recurring question from our end. You have been able to generate a good amount of cash. Net leverage is somehow pretty much under control. You were able to announce dividends recently, but also perform one acquisition or some acquisitions, right? Just trying to understand mid to long-term part of the strategy on the capital allocation, that would be interesting.
The second question, if I may, you made some comments in the last slide talking about the margins or the volumes that you were expecting for the remaining, you know, months of the year. If you can share some thoughts on 2023 outlook, mainly with the, let's say, the Chinese demand and what you're seeing also from Europe with the, let's say, the high natural gas prices. I know that your operations are more concentrated in Americas, but how this is impacting overall, I would say demand slash margins and volumes in the end of the day. Thank you very much.
I will try to answer your question this way. Looking at volume first, we see volume for next year is strong. I mean, we see very stable. We see similar volume next year than what we are experiencing this year. We don't see a lot of change in that. In terms of margins, well, I think in terms of margins, we have been discussing over the last quarters that, yes, we do expect that there will be some margin normalization. I would say particularly in polypropylene and EPS businesses, we will see some margin normalization going forward.
you know, based on the different demand-supply dynamics in the markets, and also in some cases, particularly in EPS business, also taking into consideration the reduction of the ocean freight rates. Polypropylene prices do not really correlate with the ocean rates. In EPS, ocean rates do have some impact. We see normalization in both of those businesses. In PET, as I mentioned, we do see some margin reduction, particularly in South America and Europe, as a result of the reduction of the reference margins of PET in Asia, that I mentioned before. also, in both cases, there is gonna be an impact on the ocean freight rates.
Margins or freight rates from China or from Asia to these countries are also coming down or becoming more normal. We do expect some margin normalization in those two businesses. In PET, I already mentioned, I think that North America, we see margins as stable next year versus this year. And mind you, that's our largest business in terms of volume. And that will be probably the answer to your question. In terms of capital allocation, we are assuming, for, let's say, next year, a continuation, I would say, of the Corpus Christi project that will require investment.
We are also, we're at this point in time, we're not considering any new M&A, but as you do know, a lot of the times or most of the times, the M&A are not, you know, planned a long time in advance. It really depends on what opportunities come about. That's something that it doesn't mean we will not do any M&A. It just means that at this point, we're not looking at any specific. There might be a couple of ones that will come to fruition, but we're not, let's say, including in our budget any of those at this time. Yes, in terms of dividends, we do hope that we will continue to pay an attractive dividend yield.
I mean, given that we do have a very strong balance sheet, and as long as we do have that, I think it will be more efficient. It will be an efficient way of using our capital. Again, at the end of the day, Luiz, you have to remember that we do have a balance sheet that has a lot of room for new investment. Even as we pay dividends and we continue with existing projects, we do still have capability to continue to grow in, you know, new opportunities.
Okay. Yeah, that makes sense. Thank you very much.
Thank you, Luiz. Our next questions come from Nikolaj Lippmann from Morgan Stanley. Hi, Nick. You may proceed with your question.
Thanks a lot. Wow, congratulations again on phenomenal numbers. To the team and your M&A track record. I just have two questions. One, if you could give us a little bit more of an update in terms of Corpus, how that's moving along, you know, the kind of the base related to that and when you expect to be up and running. Also maybe the CapEx number in an updated manner. One, two. The second question I have is more broad in terms of what's the latest in terms of the potential for developing a recycled PET standard, like percentages. What is it that would be required for brand owners to call the product or you to call the product recycled?
Is that something that you think the industry is pushing for because it could create barriers to entry from imports, or is it something that you think has a lower point on the agenda? Again, congrats, and thanks for taking my question.
Nick, I think in terms of Corpus Christi, the project really started last August, so we've been there only a couple of months. Everything is looking fine. The idea would be to, you know, to finish construction end of 2024, start commercial operation beginning of 2025. Those are the numbers we have. We have not changed those numbers for the last three months. I'll be paying a visit to the site next Monday, so perhaps if I have more information, we will be able to share with you. So far the investment there is relatively small. I don't know the exact number, but I think we're talking about $300 million, 300 or 300-
300.
In the $300 million range, our part of the investment. Perhaps a little bit more than that, 330, but that's the number we have for our share of the project. Okay? In terms of, you know, in recycling a standard product, I don't think that we are yet at that point. I think there's a lot of, you know, a lot of flexibility from, I think, the brand owners and most of our customers in terms of recycled content. I think this, all of them, they have a goal, let's say a medium-term goal, but it really, at this moment, it really depends now in what region or what country you're talking about.
I think the biggest concern of all of the participants in this recycling effort, I think the biggest concern we have now, I would say, is number one, the collection. Collection of used bottles or bales. That's number one concern. You know, a lot of work going on in different technologies. As you know, the mechanical recycling is pretty well established at this time. But there's also a lot of different routes for the advanced recycling or chemical recycling that are being, you know, you have many different companies working on those. At this point, I don't think we have yet a standard.
Also another way of producing or recycling, which is and this is pretty much open only for the PET producers, which is what we call the SPT, which is Single Pellet Technology. Which means that you can feed into our existing polymer lines, you know, recycled pellets up to a certain percentage. You produce one pellet that has both virgin and recycled. That's another way of moving forward. There are many ways, and as I say, we're now, you know, with a lot of flexibility. Eventually, I think you're right. There's gonna be a preferred way, preferred method. As I say, right now, I think the biggest issue is how do we increase the collection?
Not only increase in terms of volume, another very important issue is not only increasing volume, but just improving the quality of the feedstock of the bottles. Because that has a lot of implications on the yields that you're going to have. If the product quality is not very good, you're gonna have yields in the range of 50% or a little bit higher. When you have good yields, like deposit material, you can move to much higher yield, 75%-80%. A lot of that is, as I say, still being, well, you know, it's very fluid at the moment. Yeah, there is a lot of effort from a lot of people in that field.
I think we all take that very, very seriously.
Thank you very much. Again, congrats.
Thanks for the question, Nick. Our next question comes from Andrés Cardona from Citi. Hi, Andrés, how are you? Please proceed with question.
Hi. Good morning, Antón, Pepe, José Carlos. I have two questions. The first is, can you please help me to understand how much are you being able to capture as of today from the reliability premium and the transport cost on your margins? And if you expect to still see some of these, let's say, unusual premiums in your 2023 contracts. And the second question has to do with working capital. It was surprising to me to see this negative flow given the fact that raw materials were declining. Can you please help me to understand what happened there, if there is something that is untypical? Thanks, and congratulations for the results.
Thank you for your question, Andrés. Let me start with the premium and the ocean freight margins. Well, certainly, as I mentioned, depending on which market we're talking about, let's say the ocean freight, as I mentioned, normally in South America and in Europe, we you know, the ocean freight is important in determining our prices. Also, it's not necessarily automatic. It's not that every shipment you're adjusting the price, but it's taking into consideration in the negotiation of the prices. That's true. In terms of the premium, well, you are right. When you have a lot of supply issues, sometimes, you know, premium can be better than in other cases.
However, again, in our South American and European operations, I don't think we've been changing the premiums. I think mostly the impact has been coming from the ocean freight. Yes, as the ocean freight comes down, we do believe that we're gonna see some, as we call it, normalization of margins, in particular, in those markets. With regards to your second question of working capital, I have to say you are right. When raw materials come down, well, obviously, working capital has to come down. The only issue, Andrés, is that there is a lag in that process. It doesn't happen immediately. Normally, we say it takes a couple of months for this, you know, reduction to materialize.
I do believe that we're going to see an important net working capital reduction during fourth quarter this year.
If I may, Pepe, in September, we already saw a decrease in working capital. We're starting to see that effect.
Yeah. We had a negative. Well, we had a recovery-
Reduction.
Reduction of working capital in September, but we had a positive in the first, in the other two months.
Yeah.
Yeah, we should see the impact more clearly in the fourth quarter.
Thank you for your question.
Our next question is coming from Bárbara Amaya from JPMorgan. Hi, Bárbara, please proceed with your question.
Hi. Thank you for the opportunity, and congratulations on the results. Some of my questions have been answered, so I wanted to shift a little bit and maybe focus something else. I wanted to understand a little bit better in terms of your funding strategy for next year for the 2023 bonds. You have discussed already your capital allocation strategy, but just to understand what you're thinking in terms of refinancing options, for that maturity. That would be number one. The second one is more specific on the debt collection from the M&G Mexico, just to confirm if the funds have already been received. If so, if you could point out where do we see that in the cash flow statement? If not, when do you plan to receive them?
How much is left to receive from them? Thank you.
Okay. I'm gonna ask José Carlos to actually help me in answering both of your questions.
Thank you, Pepe. Barbara, thank you for your question. As you know, we have an outstanding bond. Well, first of all, we have an outstanding bond that will mature now in November of around $94 million remaining. That we've basically paid out of cash on hand. We've been fortunate enough to have sufficient cash with us, so we will pay that with cash. 2023, we'll be able to pay that. Well, we're thinking on a financing strategy that will allow us to have some time to refinance that with a long-term debt. We don't believe that the market is ready or it's at attractive rates to issue a bond.
We'll probably use some temporary financing, probably two-three year loans that will allow us to kind of have an opportunistic approach towards refinancing the 2023 maturity. We already have those in place. We're ready to bridge that maturity, and we'll refinance with a more attractive rate later on. Regarding our debt collection, yes, we did collect $22 million. You should see that I mean in our maturities, not in our maturities, in our balance sheet. It should be seen in debt to third parties, or debt from third parties. We have been able to recover the entire second lien that we had with M&G. They've also had fortunate doing good with margins.
The total collection that we have had so far from them is $108 million. Sorry. My correction. It's we said the $108 millions are coming.
Okay.
Are still outstanding.
Perfect. Understood. Thank you.
Thank you, Barbara. The next question is coming from Leonardo Marcondes from Bank of America. Hi, Leonardo. Please proceed with your question.
Hi, guys. Can you hear me?
A little bit.
Okay.
Yes. Thank you.
Okay. Thank you for taking my question. We saw a huge hike in EPS margins this quarter, right? In your view here, EPS spreads increased more or less 90% quarter-over-quarter, and that's why the P&C business was able to post such strong results in spite of the drop in PP margins, right? Would you share what are your expectations on EPS spreads? I mean, here we do not expect those to remain as high as they were this quarter, but we are also not seeing them going back to the previous levels in 2023. I would like to know if you guys agree with that.
If so, could you share with us what in your view has been driving, I would say, this higher EPS spreads in the short to mid term? Thank you.
I think in terms of the question for this last quarter, the fact is that what happened was that prices of raw material fell faster than our sales prices. We were able to increase the spread temporarily. You're right, these margins will tend to normalize as time goes by. We do believe that we're gonna be able to improve the margin somewhat versus the previous or pre-pandemic levels going forward, but certainly at a lower level than what we are experiencing today. I don't know, Leonardo, if that sort of answers your question.
Yeah. I mean, at least.
We cannot hear you.
Can you speak a little bit louder, Leonardo, please?
Sure. Can you hear me better now?
Not great, but
Not really.
Not great, but better.
Okay. Follow-up is there later. Thank you.
Thank you.
Thank you, Leonardo. Our next question comes from Jean-Baptiste Bruny from BBVA. Hi, Jean, how are you? Please proceed with your question.
Hi. Thanks, Antón. Hi, Pepe, José Carlos, and Alejandra. Just two quick questions on my side. The first one on Octal. Can you give us some colors on the contribution of Octal during the quarter in terms of EBITDA? When you closed the acquisition, you also mentioned that you were seeing some opportunities to some synergies on the purchase side. If you can give some comments on this. The second one is in terms of outlook. Thank you very much for sharing your view, the very preliminary view on for 2023. Just to make sure, you mentioned that the margins for PET will be stable year on year next year in 2023 from 2022 levels.
The last one is in the last call, José de Jesús Valdez Simancas, you mentioned at the bottom of the cycle, EBITDA, you were seeing it around $1 billion. Can you just also confirm that number? Thank you very much.
Well, relative to the Octal contribution, as you know, we don't disclose the specific numbers for the different business units. I do hope, Jean-Baptiste, that it will be enough for you to say that the Octal margins or the Octal results were very strong, actually stronger than we had anticipated in our project book. A lot of reasons for that. Among others, you know, is the situation of the freight rates. Octal has a contract for some of its volume or an important portion of its volume. The ocean freight was contracted before the spikes. They do have that advantage, but eventually at some point next year, that's going to finish.
Yeah, that has contributed somewhat to the very strong results. As I said, they certainly have been better than we anticipated. In terms of the synergies, I think the most important synergy for us so far has been. We are integrating all of the PET commercial operation with our existing organization. I think that's an important opportunity for both of us, for Octal and for, you know, Alpek Polyester. That has been an important. In particular, I do believe that we will be able to better serve our customers.
Also, in fact, I think we were short on PET most of last year in North America. I think the Octal opportunity or acquisition will allow us to, as I say, to supply more or supply better supply to our existing customers. That's probably the most important, I would say, synergy. Going forward, there's gonna be, I think, a lot of synergies. We mentioned before, they do have a very, you know, leading technology to the production of sheet. That is also allow us to produce even at the same time, sheet and resin.
I think we're gonna be able to also take advantage of that technology in new projects that we have in our different regions. That's the situation. With respect to PET margins, and I do want to sort of be more specific about your question. What I did say about PET margins for 2023 is that we do expect North American margins being similar to last year. I did mention that in our U.K. and South American operations, those margins are going to be lower as a result of lower ocean freight rates and also lower margins in Asia. Big chunk of our business gonna be stable. Some other part is not gonna be perhaps similar to this year.
It's gonna be lower than this year. Hopefully, still at a very healthy level. The bottom of the cycle EBITDA, we still believe that the $1 billion is a good number. I mean, you as you know, that's only an estimate that can change depending on so many factors. Hopefully also as we are investing in more projects, that number, you know, we should be doing better than that number, as maybe, you know, Corpus Christi and some other projects that we have, that we're working on start.
That's it. Very clear, Pepe. Thank you very much.
Okay. We have one question from Jacob Kim from Scotiabank throughout the Q&A function, and the specific question is: Last quarter, we were expecting second half to be $330 per metric ton for the Asia PET reference margin. As first half came in at $400 per metric ton, what part of the margin was different? What view do you now hold for the fourth quarter?
Good question, K. I think what happened was basically a fact that margins in Asia get stronger for at least the July-August period. We need to see, and I mentioned that in my presentation earlier, that in September, the margins from Asia were already $356. The average for the quarter was $400, but at the end of the quarter, it was $356. Again, I do believe 330 is still a good number for the remaining of the year. That's still a good number. We do believe that it's just it was just a delay in the fluctuation. I mean, it could be 330, 320, 310.
I mean, that range, I think is realistic.
Thank you. We have another question to the Q&A function from Regina Carrillo from GBM. The specific question is: Besides the decline in raw material prices, could you give us more color on the components of this quarter inventory adjustment and also in net working capital?
Well, look, inventory adjustment, mostly, I mean, it was a result of our three main raw materials coming down significantly in some cases. The propylene price, I think you saw the last number in September, the contract propylene price in the U.S. was $0.44 per pound, and it is coming from a much higher number. I don't remember, from memory, what was the price at the end of the second quarter, but it was significantly higher. In the case of styrene, the reduction was even bigger. I think in styrene at some point was at the $0.80-$0.90 per pound range, and right now it's around $0.50.
Those two raw materials, you know, had a significant reduction in price during the last quarter. Even paraxylene. Paraxylene also had an important impact in price reduction. I would say a big reduction in those three created this inventory adjustment. Going forward, again, propylene, believe it or not, is also, we believe, gonna come down in October. From the $0.44, it's gonna, we estimate it's gonna be like in the $0.34 per pound, which is unusually or unsustainably low. We're gonna have at least in October another reduction. It might last November, December. I don't really know, but it's gonna be there. In case of styrene, we see that price more stable around the $0.50 per pound.
I don't see a big reduction there. In paraxylene, actually, we don't have a very good visibility of what paraxylene prices are gonna be in the fourth quarter relative to the third quarter. All in all, what I can tell you is that we don't expect an inventory adjustment in the fourth quarter. We think most of that is already done. We might actually have a slightly positive. Most likely we will have a positive inventory gain in this next one.
Thank you for the question. I believe that was our last question in the queue. As always, I'd like to remind you that you can find both a video recording of today's webcast, as well as a transcript at our website at alpek.com. Thank you all for participating in Alpek's webcast. Have a great day.