Home / Knowledge / News / Textiles / Indorama Ventures volume up by 5% in third quarter
Indorama Ventures volume up by 5% in third quarter
17
Nov '12
Indorama Ventures Public Company Limited for the third quarter of 2012 achieved a consolidated sales of US$ 1,697 million (Baht 53,249 million), consolidated reported EBITDA of US$ 122 million (Baht 3,818 million), consolidated net profit after tax and minority of US$ 50 million (Baht 1,566 million), and a consolidated return on average net operating capital employed of 6% on an annualized basis.

The volume increased by 5% over 2Q12, from 1.35 million tonnes to 1.41 million tonnes in 3Q12, and the reported EBITDA increased by 17% to US$ 122 million in 3Q12.
 
IVL achieved a core EBITDA per tonne of US$ 78 in 3Q 2012 against US$ 112 in 2Q 2012. Core earnings were primarily impacted by significantly weak margins in the Asian business across the value chain of PTA, PET and Polyester due to the:
- Continuing Chinese slowdown, reflected by quarter on quarter drop in their economy for last many quarters on all major economic indicators.
- Continuing oversupply of PTA in Asia, weakening margins across the value chain in Asia in particular and to a lesser extent in Europe.
 
The MEG business and the North American PET and Polyester business were stable during the period. The overall demand for PET and Polyester was in line with historical trend and therefore the underlying fundamentals for Polyester value chain remains attractive. IVL’s business model of global and product diversity as well as backward integration creates a meaningful hedge against weakness in a particular region or segment as reflected by its performance.
 
The losses due to Lopburi floods, the severe decline in PTA margins and the subdued sentiment in Asia have significantly impacted EBITDA in Asia since 4Q11, roughly on a third of company business. Management believes that overall improvement can be anticipated firstly from the operational improvement projects that have taken place in 2012; the debottlenecking of the China capacity to 522kt per annum, the start up of the Nigeria SSP plant, and the acquisition of PET capacity in Indonesia in 3Q 2012. Secondly, the improvement in the macro environment in China and India is anticipated to lead to an improved sentiments and therefore partial recovery of PTA margins that are currently below cash costs for the majority of the industry in Asia.
 
Regionally, North America remained the top performer while Europe was slightly weaker in light of the continued Greek-led crisis that has engulfed most of South Europe. Operational excellence measures at Spartanburg, a Brownfield capacity addition at Rotterdam, which is due to commence operations in 4Q 2012, as well as the addition of the Oxide and Glycols business in North America, will potentially offset the weak PTA and PET margins in Asia.
 
Click here to read more details:
 

Indorama Ventures Public Company Limited

Must ReadView All

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search