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Dull quarter impact of seasonality & exchange loss - IRP
16 Nov '09
2 min read
Indorama Polymers Public Company Limited presents third quarter results for 2009.
Financial highlights Q3, 2009:
• Higher sales volume 249,027 tons, growth 27.0%
• Sales utilization 104% in Q3, 2009 viz-a-viz 82% in Q3, 2008
• Lower blended spread US$ 170 per ton in Q3, 2009 and US$ 205 per ton in 9M, 2009
• Lower EBITDA Baht 681 million
• Net profit before exceptional loss Baht 295 million
• Net cashflow provided by operations Baht 4,020 million
• Net operating debt reduced by Baht 2,414 million
IRP sales volume 249,027, YoY growth 27.0%, benefit from our global market reach Re-stocking completed.
In H1, 2009 demand growth also came from re-stocking of inventories Weak market in USA and Europe.
IRP maintain capacity utilization on sales of 105.8% in USA and 105.4% in Europe despite economic slow down Lower industry spreads.
IRP increase market share and to achieve sale volume growth in weak market conditions had to pass on benefit of pricing to customer.
- Integrated margins stable in the polyester value chain
- Asian PET spreads lower in 9M, 2009 on slow down in demand
- Growth and expected to result in further capacity rationalization
From 2008E to 2012F, global PET resin demand is expected to continue growth at a faster rate than GDP.
PET demand growth has slowed down in some regions, in particular North America and Europe, hit by the current economic slowdown, but expected to recover from 2010 onwards.
Outlook
Volume growth to continue in Q4, 2009 and year 2010
• Q4, 2009 higher sales volumes of around 280,000 tons on additional sales volume from AlphaPet Line 1
• All projects complete on start-up of AlphaPet Line 2 in December, 2009. Year 2010 full capacity available for operation target sales volume of around 1.4 million tons
• Q4, 2009 spreads to improve over Q3, 2009 with full year spreads US$ 200+ per ton
• Lower blended conversion cost
• Low benchmark interest rates
• Operating debt to reduce from repayments
Financial highlights Q3, 2009:
• Higher sales volume 249,027 tons, growth 27.0%
• Sales utilization 104% in Q3, 2009 viz-a-viz 82% in Q3, 2008
• Lower blended spread US$ 170 per ton in Q3, 2009 and US$ 205 per ton in 9M, 2009
• Lower EBITDA Baht 681 million
• Net profit before exceptional loss Baht 295 million
• Net cashflow provided by operations Baht 4,020 million
• Net operating debt reduced by Baht 2,414 million
IRP sales volume 249,027, YoY growth 27.0%, benefit from our global market reach Re-stocking completed.
In H1, 2009 demand growth also came from re-stocking of inventories Weak market in USA and Europe.
IRP maintain capacity utilization on sales of 105.8% in USA and 105.4% in Europe despite economic slow down Lower industry spreads.
IRP increase market share and to achieve sale volume growth in weak market conditions had to pass on benefit of pricing to customer.
- Integrated margins stable in the polyester value chain
- Asian PET spreads lower in 9M, 2009 on slow down in demand
- Growth and expected to result in further capacity rationalization
From 2008E to 2012F, global PET resin demand is expected to continue growth at a faster rate than GDP.
PET demand growth has slowed down in some regions, in particular North America and Europe, hit by the current economic slowdown, but expected to recover from 2010 onwards.
Outlook
Volume growth to continue in Q4, 2009 and year 2010
• Q4, 2009 higher sales volumes of around 280,000 tons on additional sales volume from AlphaPet Line 1
• All projects complete on start-up of AlphaPet Line 2 in December, 2009. Year 2010 full capacity available for operation target sales volume of around 1.4 million tons
• Q4, 2009 spreads to improve over Q3, 2009 with full year spreads US$ 200+ per ton
• Lower blended conversion cost
• Low benchmark interest rates
• Operating debt to reduce from repayments
Indorama Polymers Public Company Limited
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