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Earnings Release
IVL Revenue Grows 9% to US$7.5 billion in 2013
HVA and Asia portfolio providing strong growth
Feb 20, 2014
Bangkok, Thailand – 20 February 2014 – Indorama Ventures Public Company Limited (IVL), the world’s leading Polyester value chain producer, raised the bar once more in a tough year, generating revenues of US$7.5 billion, from US$6.8 billion in 2012, with the fourth quarter rising 14% over the previous year to US$1.8 billion. Core EBITDA grew a modest 4% in 2013 to US$487 million, but with a bounce in the fourth quarter of 30% lifting Q4 Core EBITDA to US$127 million from US$101 million in the same period of 2012. The Global HVA business and the Asian commodity portfolio performed well with combined Core EBITDA increasing to US$249 million from US$157 million in 2012 although the Asian PTA business remained in oversupply with unchanged margins. The Western commodity business delivered 22% lower EBITDA in 2013 primarily following a turnaround to replace the catalyst at the Company’s ethylene oxide and glycols plant in the USA and a mechanical downtime at the Rotterdam PTA plant.

Mr. Aloke Lohia, Group CEO of Indorama Ventures said, “2013 was a tough year for the industry; our differentiation and low cost strategy has provided us with superior margins compared to many of our peers. Our volume and geographic diversification continues to outperform our peers. We have moved further into a horizontal integration strategy through the acquisition and development of High Value Add (HVA) products that are now providing excellent returns. IVL’s HVA segment contributed 19% of production, 27% of revenues and 34% of Core EBITDA in 2013 as these products continued to impress global brands. The acquisition of FiberVisions in 2012 gave us the lead in the hygiene sector and now the recent announcement of the acquisition of PHP Fibers in Germany gives us the lead in technological yarns used in the airbag and tire cord business segments,” Lohia said.

Regarding future plans for expansion, “We will continue to seek new territories for our core business volumes and develop the HVA portfolio for higher overall margins. We are continuously developing our vertical integration strategy to its logical objective of owning the complete Polyester Value Chain up to Paraxylene (PX), which will then provide us with higher margins that remain stable across industry cycles,” Lohia concluded.

The management has recommended 2013 dividend of Baht 0.28 per share of which Baht 0.14 was paid out as an interim dividend.


(1) Consolidated financials are based upon elimination of intra-company (or intra business segment) transactions
(2) Core EBITDA is Consolidated EBITDA less Inventory gain/ (loss)
(3) 2013 Core EBITDA includes a business interruption insurance claim of US$ 5/tonne (US$ 29 MM)
(4) CAPEX and investment are on a cash basis as per cash flow statement
(5) Periods with Restated or (R) are restated numbers as per change in Thai Accounting Standards