Mexichem, S.A.B. de C.V. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net sales of USD 1,468 million as compared to USD 1,278 million for the same period last year. Operating income was USD 162 million as compared to USD 116 million for the same period last year. Income from continuing operations before income tax was USD 150 million as compared to USD 88 million for the same period last year. Income from continuing operations was USD 123 million as compared to USD 52 million for the same period last year. Consolidated net loss was USD 22 million as compared to income of USD 83 million for the same period last year. Net income was USD 14 million as compared to USD 72 million for the same period last year. EBITDA was USD 277 million as compared to USD 198 million for the same period last year.
Increase in EBITDA was mainly due to the increased profitability from the vertical integration in Vinyl Business Group, higher refrigerant gas prices in the U.S. and the European Union as well as strong sales in Fluent and higher EBITDA margins in Fluent U.S.A., Canada and Europe. Operating cash flow before capex was USD 339 million as compared to USD 221 million for the same period last year. Total CAPEX was USD 81 million as compared to USD 95 million for the same period last year. Free cash flow was USD 197 million as compared to USD 114 million for the same period last year.

For the year, the company reported net sales of USD 5,828 million as compared to USD 5,344 million for the same period last year. Operating income was USD 708 million as compared to USD 582 million for the same period last year. Income from continuing operations before income tax was USD 535 million as compared to USD 422 million for the same period last year. Income from continuing operations was USD 357 million as compared to USD 311 million for the same period last year. Consolidated net income was USD 214 million as compared to USD 247 million for the same period last year. Net income was USD 194 million as compared to USD 263 million for the same period last year. EBITDA was USD 1,106 million as compared to USD 865 million for the same period last year. Operating cash flow before capex was USD 683 million as compared to USD 558 million for the same period last year. Total CAPEX was USD 289 million as compared to USD 414 million for the same period last year. Free cash flow was USD 201 million as compared to USD 90 million for the same period last year.

Based on current business portfolio, The company expects 2018 to be another year of strong growth for Mexichem with contributions from each of key business areas. The company is guiding to EBITDA growth of between 20% and 25% for 2018, supported by the full year benefit from joint venture ethylene cracker, assumptions of continued higher pricing for key products, including PVC, fluorspar and refrigerant gases, recovery of Fluent LatAm, increased demand for Fluent Business Group's industrial products and an eleven-month contribution from Netafim. The company's midterm target for Netafim is to generate around USD 200 million in EBITDA in 2020 with a margin of around 16% to 17%.