Home / Knowledge / News / Textiles / Indorama Ventures Q1 core EBITDA skyrockets 83%
Indorama Ventures Q1 core EBITDA skyrockets 83%
12
May '14
Indorama Ventures Public Company Limited (IVL), the world’s leading vertically integrated Polyester Value Chain producer, saw total revenues of THB 61.6 billion in the first quarter of 2014, a solid 11% rise over the same period in 2013, with Core EBITDA growing 83% to THB 5.1billion. 
 
Sales growth through higher volumes was achieved, although rapidly falling feedstock prices led to the weaker absolute prices of the commodity PET and Polyester products. IVL incurred a non-cash inventory loss of US$33 million in 1Q 2014 reversing a non-cash gain of $11 million in the same quarter last year. 
 
“The Company’s is pleased with its robust performance with core EBITDA rising to US$155 million,” noted Aloke Lohia, Group CEO of Indorama Ventures, “compared with US$93 million in 1Q 2013 as improved sentiments drove increased volumes and margins. IVL is clearly benefited from expanding HVA portfolio and operation excellence projects in an otherwise challenging environment,” he said.
 
The HVA and the Asian Commodity businesses had significantly higher core EBITDA which grew to US$56 million and US$25 million respectively in 1Q2014, an increase of 63% and 86% over 1Q 2013. Western Commodity business results were steady during this period at a healthy rate. 
 
The Asian PTA business continues to remain subdued, but improved production volumes in EO/EG and strong Purified Ethylene Oxide (PEO) margins drove the performance of the Feedstock segment upward to a core EBITDA of US$55 million, compared to US$36 million in the same period of 2013. Despite Asian PTA overcapacity, the Company is optimistic that there will be gradual margin improvement in 2014 as industry rationalization has commenced and more producer discipline is expected.
 
“In all segments of the business, the High Value Add (HVA) products continued to gain traction and are now over a quarter of our revenue and a third of our core EBITDA,” Lohia noted. The successful completion in April 2014 of the deal to acquire 80% of PHP Fibers, a Leading Global Nylon 66 air bag Yarn supplier, is the maiden entry of IVL into the airbag and tire cord business.
 
The Company’s nascent PET packaging business in Nigeria has drawn greater volumes of PET resin and the Company’s entry into the Ghana market is expected to improve this volume even further. A new packaging facility in the Philippines will assist global branded customers in an underserved yet high demand market.
 

Indorama Ventures


Must ReadView All

Cambodia’s economic growth to remain strong in 2017 & 2018

Apparel/Garments | On 14th Dec 2017

Cambodia’s economic growth to remain strong in 2017 & 2018

Cambodia’s economy is expected to grow at 6.9 per cent and 6.8 per...

2 garment factories to be set up in Jordan’s Arjan, Souf

Apparel/Garments | On 14th Dec 2017

2 garment factories to be set up in Jordan’s Arjan, Souf

Jordanian Prime Minister Hani Mulki recently laid the foundation...

BRC welcomes ‘breakthrough’ on Brexit talks

Apparel/Garments | On 14th Dec 2017

BRC welcomes ‘breakthrough’ on Brexit talks

The British Retail Consortium (BRC) has welcomed the recent...

Interviews View All

Amardeep Singh
Orient Craft

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

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search