Indorama Ventures Achieves Core Net Profit of US$ 110 Million, 31% up YoY

Stocks and Financial Services Press Releases Thursday August 10, 2017 18:05
Bangkok--10 Aug--Indorama Ventures
Core EPS of THB 0.73 reflect a 30% increase over 2Q16.
Core EBITDA up by 33% for LTM 2Q17 to US$ 239 million, a new record.
Completed acquisition of Glanzstoff for further growth in the auto segment and broadening portfolio mix.
Rotterdam PTA project completed.
Indorama Ventures Public Company Limited (IVL), a global chemical producer, today reported financial results for the second quarter 2017.

The Company delivered year-on-year revenue growth of 11% to US$ 2,089 million despite planned turnarounds in 2Q17 that led production down 4% to 2,223 million tonnes. Core EBITDA for the company grew by 9% to US$ 239 million, driven by prudent investments made in the higher-margin HVA businesses; integration into key feedstocks in balanced markets and timely investments in key regions. Cash flow from operating activities grew by 87% YoY to US$ 286 million. The last twelve months have seen steady to strong integrated industry margins compared to the declining trend in previous 5 years.

Mr. Aloke Lohia, Group CEO of IVL said, "IVL is testimony of a well-planned strategy. This strong performance overall further reaffirms that IVL's pursuit of greater scale and breadth across geographies and verticals is the right path."

"Today, IVL has approximately US$ 3 billion in annual revenue from HVA products serving applications that individually grow at healthy rates of around 7% year-on-year. The automotive segment is a key growth driver in IVL's HVA portfolio. China, for instance, is an exciting growth area today, and our recent acquisition of Glanzstoff comes with a brand-new plant in Shandong, China which together with the expansion of our Performance Fibers plant in Kaiping City, due for completion in 1H2018, will allow us to serve an even greater number of customers with a broader automotive portfolio."

The Rotterdam PTA expansion is complete with final fine tuning events being executed and begins contributing in the third quarter as Europe's most efficient integrated PET/PTA plant. Meanwhile, the Company is on track to complete its 440,000 tonnes/ annum US Gas Cracker project and expects refurbishment to be complete by the end of 2017. Approximately 90% of the output produced will be used as a feedstock at IVL's Texas EO/EG facility, allowing the Company to further integrate and capture full value chain gains as well as an improved return on capital.

Commenting on the outlook for full year 2017, Mr. Lohia said, "The strength of our first half results further reinforces our confidence in beating our full year targets. We are well-positioned for another year of solid growth. Our innovative HVA products, the positive tailwinds in volume and margin and the impact from operational excellence actions taken during the year, are expected to continue contributing to earnings growth."

"I remain confident that the continued business transformation efforts we have made, combined with scale and best-in-class assets in our portfolio, will support our continuing journey of profitable growth, while providing shareholders the opportunity to participate in the unparalleled value creation potential of the Company," Mr. Lohia concluded.

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