UPDATE 1-Mexico Mexichem posts 1.3 bln peso loss in quarter

(Adds analyst comment, share price)

MEXICO CITY, Feb 25 (Reuters) - Mexichem, one of Latin America's biggest chemical companies, said on Wednesday it had a net loss of 1.28 billion pesos ($92.5 million) during the fourth quarter as financing costs spiked due to exchange rate weakness.

Mexichem (MEXCHEM.MX) said its fourth-quarter loss compared with a majority net profit, attributable to common shareholders, of 431 million pesos in the same period in 2007.

Financing costs soared due to exchange rate losses, the company said in a statement filed with the Mexican stock exchange.

Inigo Cossio, an analyst at Actinver brokerage in Mexico City, said the quarterly loss was primarily due to converting the company's dollar debt into pesos, adding that he was keeping his rating on the company as "outperform."

"We think the potential growth of the issuer is elevated in the short, medium and long term," Cossio wrote.

Mexico's peso lost 21 percent of its value against the dollar during the fourth quarter.

Fourth-quarter sales at Mexichem, a producer of hydrofluoric acid, PVC piping and other chemical products, rose 24.6 percent over the year-ago period to 8.45 billion pesos.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, grew 1 percent during the last quarter of 2008 to 1.274 billion pesos.

During 2008, Mexichem bought seven companies, located in Mexico, Brazil, Colombia and Peru. Even so, the company said net debt fell $65 million to $588 million during the year.

Mexichem reported a net cash position of $292 million at the end of 2008, which it said will allow it to cover its short-term debt payments.

Due to current financial volatility and economic uncertainty, the company said it could not provide full year guidance, but said it expected sales and EBITDA to grow 3 percent in dollar terms during the first quarter.

Mexichem shares edged up 1.95 percent to 10.44 pesos in late afternoon trade as the broader market declined. Actinver set a 12-month price target of 23 pesos for the stock. ($1=13.815 pesos at end-December) (Reporting by Michael O'Boyle; editing by Richard Chang)