Bangkok, Thailand – 12 May 2014 – Indorama Ventures Public Company Limited (IVL), the world’s leading vertically integrated Polyester Value Chain producer, saw total revenues of THB 61.6 billion in the first quarter of 2014, a solid 11% rise over the same period in 2013, with Core EBITDA growing 83% to THB 5.1billion. Sales growth through higher volumes was achieved, although rapidly falling feedstock prices led to the weaker absolute prices of the commodity PET and Polyester products. IVL incurred a non-cash inventory loss of US$33 million in 1Q 2014 reversing a non-cash gain of $11 million in the same quarter last year.
“The Company’s is pleased with its robust performance with core EBITDA rising to US$155 million,” noted Aloke Lohia, Group CEO of Indorama Ventures, “compared with US$93 million in 1Q 2013 as improved sentiments drove increased volumes and margins. IVL is clearly benefited from expanding HVA portfolio and operation excellence projects in an otherwise challenging environment,” he said.
The HVA and the Asian Commodity businesses had significantly higher core EBITDA which grew to US$56 million and US$25 million respectively in 1Q2014, an increase of 63% and 86% over 1Q 2013. Western Commodity business results were steady during this period at a healthy rate.
The Asian PTA business continues to remain subdued, but improved production volumes in EO/EG and strong Purified Ethylene Oxide (PEO) margins drove the performance of the Feedstock segment upward to a core EBITDA of US$55 million, compared to US$36 million in the same period of 2013. Despite Asian PTA overcapacity, the Company is optimistic that there will be gradual margin improvement in 2014 as industry rationalization has commenced and more producer discipline is expected.
“In all segments of the business, the High Value Add (HVA) products continued to gain traction and are now over a quarter of our revenue and a third of our core EBITDA,” Lohia noted. The successful completion in April 2014 of the deal to acquire 80% of PHP Fibers, a Leading Global Nylon 66 air bag Yarn supplier, is the maiden entry of IVL into the airbag and tire cord business. The Company’s nascent PET packaging business in Nigeria has drawn greater volumes of PET resin and the Company’s entry into the Ghana market is expected to improve this volume even further. A new packaging facility in the Philippines will assist global branded customers in an underserved yet high demand market.
For a more in-depth view of our results, read the Management Discussion and Analysis on our website:
Or download our financial statements: