Press Release
IVL Core Performance above Par
Bangkok, Thailand – 11 May 2015 – Indorama Ventures Public Company Limited (IVL), a world-leading producer of intermediate petrochemicals, announced a core net profit of Baht 1.6 billion, or 15% growth over the previous quarter. Core EBITDA marginally improved but was restrained by PTA supply issues in the USA, an extensive planned turnaround at its Mexico PET plant, which is still ongoing, and a planned shutdown of 28 days at the company’s new Polyester plant in Indonesia.
The company’s operating cash flow reached a record Baht 26.7 billion over the last 12 months to the end of the first quarter, an increase of 100%, due to higher sales, lower feedstock prices and improved working capital management. A continued fall in crude oil and petrochemical prices in the first quarter led to a non-cash inventory loss of Baht 1.4 billion which is expected to turn positive in second quarter as PTA and MEG prices have significantly risen.
The high value-added (HVA) product segment core EBITDA over the 12 months prior to the end of the quarter increased by 44% over previous period.
“IVL capacity will grow in 2015 by one million tons to reach 8.5 million tons with the completed and announced acquisitions we have made to date,” noted Group CEO Mr. Aloke Lohia. “With the increased mix in our portfolio of more HVA products, improving MEG prices in the USA, our integration with a new PTA asset in Canada and attractive growth in integrated volume in Thailand, through our acquisition of Bangkok Polyester, will lead to improved margins in 2015 over 2014.”
The company has pursued four major deals in the first quarter and closed three, Polyplex in Turkey continues the company’s expansion into a fast-growing market with easy access to southeast Europe while Performance Fibers is a highly-specialized tire cord business that give the company both synergies with its polymers business in China and market leadership in the auto industry with a globally renowned brand. The closure of the deal to acquire Bangkok Polyester on 11 May 2015 completes its vertical integration strategy, allowing the PET acquisition to utilize the PTA feedstock produced locally by the company for added synergy.
The company’s operating cash flow reached a record Baht 26.7 billion over the last 12 months to the end of the first quarter, an increase of 100%, due to higher sales, lower feedstock prices and improved working capital management. A continued fall in crude oil and petrochemical prices in the first quarter led to a non-cash inventory loss of Baht 1.4 billion which is expected to turn positive in second quarter as PTA and MEG prices have significantly risen.
The high value-added (HVA) product segment core EBITDA over the 12 months prior to the end of the quarter increased by 44% over previous period.
“IVL capacity will grow in 2015 by one million tons to reach 8.5 million tons with the completed and announced acquisitions we have made to date,” noted Group CEO Mr. Aloke Lohia. “With the increased mix in our portfolio of more HVA products, improving MEG prices in the USA, our integration with a new PTA asset in Canada and attractive growth in integrated volume in Thailand, through our acquisition of Bangkok Polyester, will lead to improved margins in 2015 over 2014.”
The company has pursued four major deals in the first quarter and closed three, Polyplex in Turkey continues the company’s expansion into a fast-growing market with easy access to southeast Europe while Performance Fibers is a highly-specialized tire cord business that give the company both synergies with its polymers business in China and market leadership in the auto industry with a globally renowned brand. The closure of the deal to acquire Bangkok Polyester on 11 May 2015 completes its vertical integration strategy, allowing the PET acquisition to utilize the PTA feedstock produced locally by the company for added synergy.