Enaex has a conservative financial policy that has allowed it to keep a solid financial position.
Regarding the large investment projects, the company policy considers a mixed financing structure, which includes external sources through local and foreign banks, self-generated funds, and capital contributions. This helps to keep a conservative medium-term debt structure, and comfortable financial covenants.
The small investments made by the company are oriented to sustain growth as well as to guarantee the normal replenishment of operational assets, updating, and new facilities to expand and enhance the production capacity, which are generally financed with the operational flows generated by the company.
The working capital needs are generally covered through short-term bank debt, and are mainly related to ammonia purchases, the company’s main raw material. It is important to mention that the debt levels for this type of financing can vary throughout the year, mainly explained by the fluctuation of the ammonia international prices and efficiencies in the productive process.
Because of the importance that Enaex gives to the efficient administration of financial resources, and to generate strategies to face the impacts of volatility in the exchange markets, the company keeps a strict focus to control its investments, cash flows, working capital and keeping the share and credit rating, among others.