Indorama Ventures Q1 FY20: revenue down 3% to $2,942 mn

03 Jun '20

2 min read

Pic: Indorama Ventures Limited

Indorama Ventures Limited (IVL), a Thailand-based global chemical producer, reported 3 per cent revenue decline to $2,942 million during the first quarter (Q1) FY20 ended on ended on March 31, 2020 compared to revenue of $3,030 million in same period last year. Company reported core EBITDA remained stagnant during the quarter at $304 million.

“IVL’s Core EBITDA grew in all three segments (Integrated Oxides and Derivatives, Combined PET and Fibres) and in all regions as our products primarily go into daily necessities and non-durable consumer goods having inelastic demands,” Aloke Lohia, group CEO of Indorama Ventures, said in a press release.

Fibres EBITDA fell 12 per cent to $61 million (Q1 FY19: $69 million). IVL reported that demand for its hygiene fibres remain strong given the essential nature of its application. During Q1, the company had some production impacted in China which is now normalised and IVL saw improved performance in the vertical over the previous quarter.

“Our Fibre portfolio was partially impacted by lockdowns in China, India and Italy. Our Mobility Fibre portfolio faces headwinds from GDP contraction,” Lohia said.

Combined PET’s EBITDA were down 16 per cent to $192 million ($228 million). Company reported that with the resilience in sales volume this segment improved its performance with better spreads and lower costs.

Integrated Oxides and Derivatives EBITDA were $50 million ($3 million). This segment's performance during the quarter was reportedly impacted by a 75 days planned turnaround maintenance of PO/MTBE unit which happens once every five years.

“During these complex times of the Covid-19 global pandemic coupled with an historic collapse in the crude oil price, IVL’s performance has shown tremendous resilience with its regionalised geographical footprint, market segment participation and feedstock adaptability,” Lohia said in the release.

Fibre2Fashion News Desk (JL)

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