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Indorama Ventures posts 12% hike in 2014 reported earnings
23 Feb '15
3 min read
Aloke Lohia led and Thailand based major fibre and petrochemicals producer, Indorama Ventures clocked a reported earnings hike of 12 per cent from 2013 in full year of 2014.
Indorama Ventures, which turned 25 this year, said its reported earnings after extraordinary and non-cash items in 2014 amounted to THB 1.48 billion, up 12 per cent over 2013.
However, the company reported full year core earnings of THB 5.1 billion, an increase of 146 per cent as against 2013.
“The company’s strategic focus on developing a high value-added (HVA) portfolio has started to bring in rewards,” CEO Aloke Lohia said.
In the same period, core EBITDA expanded by a massive 30 per cent over its previous year at the petrochemicals manufacturer.
“Between the higher profits enjoyed by the fibres and yarns business and ongoing cost savings through operational excellence projects globally, the core EBIDTA has grown 30 per cent,” Lohia explained.
“We are developing a portfolio that has multiple assets in complementary operations within the hygiene fibres space and are developing further into automotive and industrial fibres and yarns,” he added.
“Raw material prices fell in the second half of 2014, releasing cash flow on lower absolute prices,” Indorama Ventures said.
Cash from operations in 2014 stood at THB 22.4 billion, once again a massive expansion of 114 per cent from 2013.
According to Lohia, the impact of crude oil prices falling, leading to inventory write-downs in the fourth quarter, has seen benefits in improvements to its cash flow as it used less working capital on lower prices.
Aloke Lohia said they delivering on their strategy to acquire businesses that would be accretive to the bottom line and cash flow.
“Our necessities business in PET and packaging materials is growing. Geographically, we are developing our service in emerging markets, notably in Turkey, where we are now a major PET player,” he informed.
Volumes at the IVL Guangdong PET plant, its state-of-the-art polyester fibres plant and at Polychem (CP4) in Indonesia have increased in the year under review.
Indorama has also achieved better utilisation of other assets, such as in Poland by enhancing its capacity.
The Company expects to close a deal to acquire Performance Fibers Asia in China soon, and thereby gain synergies with its current platform of superior auto sector assets in Europe.
Another acquisition, Polyplex in Turkey, will allow it to consolidate the Southeast European market for PET and provide greater volumes in our key markets.
The company’s capex plan is to invest around US$ 1.9 billion on growth capex and US$ 0.3 billion on maintenance capex from 2015-18 funded through cash flow from operations, debts and perpetual debentures.
It has targeted to maintain a net debt to equity ratio of around 1.0 time in the long term as against 0.83 times at December 31, 2014. (AR)
Indorama Ventures, which turned 25 this year, said its reported earnings after extraordinary and non-cash items in 2014 amounted to THB 1.48 billion, up 12 per cent over 2013.
However, the company reported full year core earnings of THB 5.1 billion, an increase of 146 per cent as against 2013.
“The company’s strategic focus on developing a high value-added (HVA) portfolio has started to bring in rewards,” CEO Aloke Lohia said.
In the same period, core EBITDA expanded by a massive 30 per cent over its previous year at the petrochemicals manufacturer.
“Between the higher profits enjoyed by the fibres and yarns business and ongoing cost savings through operational excellence projects globally, the core EBIDTA has grown 30 per cent,” Lohia explained.
“We are developing a portfolio that has multiple assets in complementary operations within the hygiene fibres space and are developing further into automotive and industrial fibres and yarns,” he added.
“Raw material prices fell in the second half of 2014, releasing cash flow on lower absolute prices,” Indorama Ventures said.
Cash from operations in 2014 stood at THB 22.4 billion, once again a massive expansion of 114 per cent from 2013.
According to Lohia, the impact of crude oil prices falling, leading to inventory write-downs in the fourth quarter, has seen benefits in improvements to its cash flow as it used less working capital on lower prices.
Aloke Lohia said they delivering on their strategy to acquire businesses that would be accretive to the bottom line and cash flow.
“Our necessities business in PET and packaging materials is growing. Geographically, we are developing our service in emerging markets, notably in Turkey, where we are now a major PET player,” he informed.
Volumes at the IVL Guangdong PET plant, its state-of-the-art polyester fibres plant and at Polychem (CP4) in Indonesia have increased in the year under review.
Indorama has also achieved better utilisation of other assets, such as in Poland by enhancing its capacity.
The Company expects to close a deal to acquire Performance Fibers Asia in China soon, and thereby gain synergies with its current platform of superior auto sector assets in Europe.
Another acquisition, Polyplex in Turkey, will allow it to consolidate the Southeast European market for PET and provide greater volumes in our key markets.
The company’s capex plan is to invest around US$ 1.9 billion on growth capex and US$ 0.3 billion on maintenance capex from 2015-18 funded through cash flow from operations, debts and perpetual debentures.
It has targeted to maintain a net debt to equity ratio of around 1.0 time in the long term as against 0.83 times at December 31, 2014. (AR)
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