IVL clocks revenue of $3 bn in Q1 2019, 26% growth yoy

The Integrated PET, Fibers and Packaging segments constitute 94 per cent of business capacity of Indorama and contributed 92 per cent of the core EBITDA, delivering strong results in these segments. Earnings for 1Q19 and LTM were adversely impacted by lower earnings from Olefins & Specialty Chemicals business segments, said Indorama in a press release.

“The Integrated PET segment benefitted from higher production volume and higher overall earnings as assets acquired in 2018 and the consolidations of 2018/19 were successfully integrated. These include acquisitions of PTA Portugal, PET (Egypt and Brazil), and the consolidation of PET in India and PTA in Indonesia. EBITDA contribution in this segment improved for the contracted businesses in the Western markets,” said Aloke Lohia, group CEO of Indorama Ventures. “In the Fibers segment, we benefitted from solid results in all of our 3 verticals of Mobility, Hygiene and Lifestyle. The improvement was seen from better operating rates and weakening raw material prices.”

“The strength in the core businesses (Integrated PET, Fibers and Packaging) is expected to remain for the rest of 2019. Earnings from the Olefins and Specialty Chemicals businesses are expected to remain weak for the rest of 2019. This changed ecosystem necessitated a comprehensive review of our EBITDA guidance. At this juncture, we believe it may be prudent to lower the previous guidance of core EBITDA for 2019 by 10-15 per cent,” added Lohia.

IVL foresees the ability to invest another $3-4 billion of projected free cash flow over the next 3-4 years in addition to its committed investments in Corpus Christi JV, USA, in adjacent businesses, focusing on its new growth engine segments, while organically growing its Integrated PET and Fibers segment.

IVL landed Thailand’s first ever green loans for $100 million and €100 million. These loans are being provided in the form of a positive incentive loan, with commercial terms linked to the improvement in IVL’s Environment, Social and Governance (ESG) score.

“Despite encountering several temporary hurdles, I feel we have put into place the strategies necessary to continue our growth trajectory. Our mix of products and geographic diversity reflect the resilience of IVL's integrated business model in that we have the ability to overcome short-term events. We believe that with promising opportunities in new growth engine segments, supported by well-established positions in Integrated PET and Fibers, the IVL portfolio is poised for growth and we remain confident of doubling our EBITDA every 5 years,” said Lohia. (PC)

Fibre2Fashion News Desk – India