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Indorama Ventures sales revenue up 25% in Q1 2017
08
May '17
Courtesy: Indorama Ventures
Courtesy: Indorama Ventures
On a year-on-year basis, sales revenue was up 25 per cent and production was higher by 24 per cent at Indorama Ventures Public Company Limited (IVL). Core EBITDA for the company grew by 60 per cent to THB 7,681 million ($221.74 million). The superior performance is a reflection of the strategic fit of IVL’s acquisitions of selected portfolios.
 
One of the world’s leading petrochemicals producers, IVL’s first quarter performance benefitted from expanded margins from successful integration of the High Value-Added (HVA) categories of polymers, fibres and packaging, and other assets acquired in 2016, and the added benefit of normalised production from its EOEG facility in the US.
 
In the 12 months ending March 31, 2017, IVL’s existing businesses, excluding the acquisitions made in 2016, delivered improved results as well from better capacity utilisation and operational excellence projects to reduce cost. The company reported volume growth in all geographic areas. Overall operating rate remained at 86 per cent over the previous 12 months in Q1 2017, which enabled margin expansion and better asset utilisation. 
 
Core EBITDA in last 12 months was THB 30 billion, up 37 per cent year-on-year and ROCE improved to 12 per cent, reflecting the company’s prudent approach towards growth and capital allocation.
 
“We had a strong start to 2017 with Q1 performing very well on all of its key performance indicators. Through a unique integrated business model and growth in our HVA portfolio, we continue to outperform and deliver industry-leading performance despite continuing industry over-capacity. Our robust earnings and significant EBITDA growth in the quarter and last 12 months is a reflection of the successful deployment of our focused strategies of earning diversification, growth in key geographies and value-enhancing integration,” commented Aloke Lohia, Group CEO of IVL.
 
Over the past 5 years or so, IVL has invested substantially in creating a diversified earnings stream via its HVA portfolio. Diversification into HVA, which now accounts for 50 per cent of overall core EBITDA, has enabled the company to deliver robust earnings on a sustained basis. 
 
Over the next two years, IVL is committed to investing around $1.2 billion on identified growth and maintenance-related projects. Additionally, and during the same period, the company believes that there will be financial headroom for further investments based on its projections of internal cash accruals and prudent borrowing capacity.
 
“We look forward to another year of disciplined growth. PTA expansion in Rotterdam in mid-2017 and startup of US gas cracker by end 2017 would not only provide strategic integration but are expected to further improve the quality and sustainable growth of earnings of IVL,” Lohia added. (RKS)

Fibre2Fashion News Desk – India


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