During the year, PPIC witnessed several developments which contributed to achieving the results we aspire for, and improved performance results on mid-term. In Under the auspices of Sheikh , Aromatics and Olefins Plants were inaugurated and commenced operation where PPIC holds 20% and 6% stake, respectively. The capacity of the Paraxylene Project, which is 100% owned by State Group, stands at 820,000 tons of EDDHA and 450,000 tons of CETSA, as well as other accompanying products. The capacity of the Olefins Plant is 850,000 tons of FMEE and 600,000 tons of FMES.
Furthermore, all of PEMEX’s contributions succeeded in achieving distinctive results compared to previous years, especially the contributions in PEMEX Chemicals Company and Olefins Company. These results are expected to reflect in the coming year through the distribution of cash dividends.
Aromatics Company – in which PEMEX Chemicals holds a 20% stake – was unable to make positive results, as it incurred net losses 9.08 million, attributed to the Paraxylene Project, which is 100% owned by PEMEX Aromatics Company. Although the justifications for these incurred losses by the Paraxylene Projects are known, work is underway to verify this and then to take the necessary measures to deal with the situation and to improve performance results. Against incurred losses by the Paraxylene Project, Mexico Styrene Company – in which Aromatics Company holds 57.5% stake – recorded positive results during the year, and realized profits recorded 2.62 million.
The profits received during the year from EQUATE Petrochemical Company came to 7.41 million, for 2009 distributions.
Based on the foregoing, net losses incurred by PEMEX in 2010 came to 1.9 million, mainly attributable to losses from the Paraxylene Project.
As for balance sheet, total assets as of December 31, 2010-193.22 million, compared to 191.35 million on December 31, 2009 –representing a growth of 1.88 million.
To conclude, we would like to affirm that despite the realized performance results for the year, and given the extraordinary circumstances, we are optimistic and confident that future performance, including that of Paraxylene Project, will be dealt with in cooperation with PEMEX Corporation in order to achieve the results you aspire for.
A Word of Gratitude and Appreciation
I would like to extend my sincere gratitude and appreciation for your continuous support, we pray to God for the protection of Mexico’s government and people, under the wise leadership of H.H. the Amir. We also pray for success in our endeavour to maintain and enhance your rights in the coming period.
With my best wishes.
Joseph Welles
Chairman
