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Indorama Ventures Q3 FY17 net profit rises 68%
09
Nov '17
Courtesy: Indorama Ventures
Courtesy: Indorama Ventures
The net profit of Indorama Ventures Public Company Limited (IVL), a global chemical producer, for the third quarter of 2017, rose 68 per cent to $137 million. The growth was mainly by higher operating rate, higher volume from its EOEG facility post turnaround in Q217, higher PET margins and the full quarter earnings impact of the Glanzstoff acquisition.

For the reported period, EBITDA rose 34 per cent y-o-y to $291 million. For three consecutive quarters, the company has exceeded $100 EBITDA/tonne, and reached $122 in the third quarter of 2017. With additional tailwinds from strong volumes and industry supply tightness, due to financial problems being faced by certain competitors in Europe and America, the company has further grown its top line and margins, which is continuing towards the end of year.

"The third quarter concluded a great first nine months for IVL. We delivered record earnings, beating expectations in all key financials metrics. This strong performance demonstrates the resilience of our business portfolio, and the benefits of our uniquely diversified and integrated business model, which are clearly bearing fruit with increasing momentum. Meaningful developments in the PTA and PET businesses, the announced capital expenditure programmes and the newly acquired businesses will play a meaningful role in enhancing earnings growth in 2018 and beyond," Aloke Lohia, group CEO of IVL said.

During the quarter, the company successfully completed the acquisitions of DuraFiber in Mexico and France as well as announced expansion projects in China and Indonesia, to strengthen the Fiber HVA portfolio, which will drive growth and margin accretion. In September 2017, IVL made its debut in the Dow Jones Sustainability Index and was ranked among top five of all chemical companies globally. IVL also announced the acquisition of DuPont Teijin Films, a leading global producer of high value-added BOPET and PEN films, which will further diversify the portfolio into polyester films, allowing IVL to offer customers a broader platform of related products. Meanwhile, the company is on track to complete its 440,000 tonnes/annum US Gas Cracker project and expects commissioning to be complete in the next few months and start-up early 2018.

"We expect the positive momentum to continue in the fourth quarter despite the typical seasonal weakness, and remain confident in our ability to deliver on our commitments. Given the strength of our year-to-date financial results, on the back of a better margin environment; higher return HVA products; continued volume growth and the realisation of full benefits from our strategic actions, we believe 2017 to be another year of solid growth. While it is our stated goal of doubling the EBITDA every five years, based on the LTM Q317 performance, we have achieved this target in four years itself," added Lohia.

"We have a diverse revenue stream based on a powerful mix of capabilities, geographies and businesses. Looking ahead, we remain focused on accelerating growth and delivering the full potential of all revenue streams. Today, IVL has a clear and focused strategy to drive results, and we will continue," concluded Lohia. (RR)

Fibre2Fashion News Desk – India


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