IVL Continues to see Net Profit Rise Geographic diversification and scale propels continued growth
Bangkok, Thailand - 9 November 2011 - Indorama Ventures Public Company Limited, the world's leading vertically integrated Polyester Value Chain producer, saw Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) for the first nine months of 2011 grow to an unprecedented US$515 million, up 76% from US$292 million in the first nine months of 2010, while EBITDA in the third quarter rose to US$153 million, up from US$114 million in Q3/2010 and US$147 million in Q2/2011. The Company's net profit for the first nine months was US$562 million, compared to US$200 million in the same period last year. After excluding extraordinary items related to acquisitions, operating net profit for the 9M/2011 period continued to perform strongly at US$325 million, more than double the US$160 million achieved in 9M/2010. Sales also grew to US$4,708 million in 9M/2011, compared to US$2,222 million in 9M/2010 resulting in growth of 112%. While sales in Q3/2011 remained relatively flat compared to Q2/2011 at US$1,689, in line with industry prices, the Company was able to outperform by increasing its volume of output to 1.2 million metric tons in Q3/2011, up from 1.1 million metric tons in Q2/2011, as demand continued to drive growth in all markets.
Mr. Aloke Lohia, Group CEO of Indorama Ventures said, "As we move forward with our plans to grow the business, we will deliver better economies of scale, improve sustainability and be more immersed in the specialty polymers and fibers and yarns businesses to enhance our bottom line," Lohia said. "There are still opportunities for us to expand in markets like Indonesia and grow with the emerging economies while bolstering our market position in the developed nations.
"Our business today is financially far stronger than it ever was," explained Mr. Lohia. "With a Net Debt/Equity of 0.63 times and a liquidity of over US$ 1 billion, this will help us not only to operate our business most optimally but also allow us to continue to grow our business with selective and accretive acquisitions and organic opportunities."
During the 3rd Quarter 2011, IVL received TRIS rating of A+ and mandated the issue of Baht 6 billion in 5, 7 and 10-year tranches. The issue was successfully completed in October 2011 and the company applied the green-shoe option for a total issue size of Baht 7.5 billion. The issue has achieved its objectives of providing access to the Thai bond market, increasing the average life of debt, locking-in fixed interest rates for the long term, refinancing existing high cost debt and providing the liquidity for planned capital expenditures and investments.
Thailand's recent national flood disaster has had limited impact on the company, which was forced to close its combined wool, PET and bottling facility in Lopburi as waters rose. The company has been able to utilize its other PET facility in Rayong, in Eastern Thailand, to support customers. Earlier in the year, another plant, AlphaPet, in Alabama, USA, was forced to close temporarily for three months due to tornados. Again, the Company was able to serve major customers from its other plants in North and South Carolina, proving that its regional presence around the world acts as a failsafe, protecting customers regionally. In both cases, full insurance, including business loss insurance, will ensure the bottom line of the Company remains consistent.
About Indorama Ventures
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB) is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company's main products are PTA, PET and Polyester fibre, which are distributed across the world. IVL has approximately 7,996 employees worldwide and last 12 months (LTM) consolidated revenue of $5.5 billion.