Mexico-based chemicals producer Orbia expects prolonged fighting in the Middle East and the subsequent shock to the global supply chain will boost second quarter sales revenues after the company was stung by high feedstock costs in the first quarter.
Orbia expects the PVC market will become more favorable, as oil and naphtha supply disruptions in Asia sustain elevated prices well into the second quarter and possibly into the third quarter if the prolonged fighting in the Mideast Gulf continues.
The longer the conflict takes, "the longer [Orbia] will have the benefit because we have a structural advantage with our cost base largely being on the US Gulf coast and based on ethane" that is more insulated from price shocks in other countries, Orbia chief executive Sameer Bharadwaj said today.
Orbia's Polymer Solutions (PS) business segment sustained an operating loss of $24mn in the first quarter, expanding upon a $6mn loss in the first quarter of 2025. The Polymer Solutions business focuses on general purpose and specialty polyvinyl chloride (PVC) resin sales. Total sales for the PS business were $602mn, marginally higher than $600mn a year prior.
The quarterly loss in the polymers business was driven by higher raw material costs in the quarter alongside operational disruptions, Orbia said.
Orbia's other business segments recorded growth in the first quarter. The increases were led by an eight-fold year-over-year increase in infrastructure operating income, which rose to $25mn and was boosted by higher Latin American sales volumes and favorable pricing.
Orbia reported a net loss of $12mn in the first quarter of 2026, rising above $29mn in the fourth quarter of 2025. Total revenues were $1.96bn in the first quarter, up 8pc from the prior year.
