IVL’s core net profit was up 31 per cent year-on-year to $110 million, during the three month period. While its core EBITDA grew by 9 per cent to $239 million, driven by prudent investments made in the higher-margin HVA businesses; integration into key feedstocks in balanced markets and timely investments in key regions, the company said in a press release.
Cash flow from operating activities grew by 87 per cent year-on-year to $286 million. “The last twelve months have seen steady to strong integrated industry margins compared to the declining trend in previous 5 years,” the release said.
“IVL is testimony of a well-planned strategy. This strong performance overall further reaffirms that IVL’s pursuit of greater scale and breadth across geographies and verticals is the right path,” commented IVL Group CEO Aloke Lohia.
“Today, IVL has approximately $3 billion in annual revenue from HVA products serving applications that individually grow at healthy rates of around 7 per cent year-on-year. The automotive segment is a key growth driver in IVL’s HVA portfolio. China, for instance, is an exciting growth area today, and our recent acquisition of Glanzstoff comes with a brand-new plant in Shandong, China which together with the expansion of our Performance Fibers plant in Kaiping City, due for completion in H1 2018, will allow us to serve an even greater number of customers with a broader automotive portfolio,” Lohia added.
The Rotterdam purified terephthalic acid (PTA) expansion is complete with final fine tuning events being executed and begins contributing in the third quarter as Europe’s most efficient integrated PET/PTA plant. Meanwhile, the company is on track to complete its 440,000 tonnes/ annum US Gas Cracker project and expects refurbishment to be complete by the end of 2017. Approximately 90 per cent of the output produced will be used as a feedstock at IVL’s Texas EO/EG facility, allowing the company to further integrate and capture full value chain gains as well as an improved return on capital.
Speaking on the outlook for full year 2017, Lohia said, “The strength of our first half results further reinforces our confidence in beating our full year targets. We are well-positioned for another year of solid growth. Our innovative HVA products, the positive tailwinds in volume and margin and the impact from operational excellence actions taken during the year, are expected to continue contributing to earnings growth.”
“I remain confident that the continued business transformation efforts we have made, combined with scale and best-in-class assets in our portfolio, will support our continuing journey of profitable growth, while providing shareholders the opportunity to participate in the unparalleled value creation potential of the company,” he added. (RKS)
Fibre2Fashion News Desk – India
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