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Q1 net jumps 15% at Indorama Ventures
12
May '15
Net profit in the first quarter ended March 31, 2015 jumped 15 per cent quarter over quarter at global petrochemicals and fibres producer Indorama Ventures Public Company Limited (IVL).

Net profit reached Baht 1.6 billion in the first quarter, up 15 per cent over the previous quarter ended December 31, 2014, an IVL press release informed.

EBITDA improved marginally as it was restrained by PTA supply issues in the USA, an extensive planned turnaround at its Mexico PET plant, which is still ongoing, and a planned 28 days shutdown at its Indonesian polyester plant.

The company’s operating cash flow reached a record Baht 26.7 billion over the last 12 months till the end of the first quarter.

“This is an increase of 100 per cent driven by higher sales, lower feedstock prices and improved working capital management,” IVL said.

A continued fall in crude oil and petrochemical prices in the first quarter led to a non-cash inventory loss of Baht 1.4 billion which is expected to turn positive in second quarter as PTA and MEG prices have risen significantly.

EBITDA over the 12 months prior to the end of the first quarter surged 44 per cent over the same previous period at its high value-added (HVA) product segment.

“IVL capacity will grow in 2015 by one million tons to reach 8.5 million tons with the completion and announced acquisitions we have made to date,” Group CEO Aloke Lohia said.

“With the increased mix in our portfolio of more HVA products, improving MEG prices in the US and our integration with a new PTA asset in Canada will lead to improved margins in 2015 over 2014,” Lohia added.

“Margins will also improve due to the anticipated attractive growth in integrated volume in Thailand, through our acquisition of Bangkok Polyester,” he stated.

The company has pursued four major deals in the first quarter and closed three. With Polyplex in Turkey, IVL continues its expansion into a fast-growing market with easy access to southeast Europe.

Performance Fibers a highly-specialised tire cord business will give the company synergies, both with its polymers business in China and market leadership in the auto industry with a globally renowned brand.

The closure of the deal to acquire Bangkok Polyester on May 11, 2015 completes its vertical integration strategy, allowing the PET acquisition to utilise the PTA feedstock produced locally by the company for added synergy. (AR)

Fibre2fashion News Desk - India

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