Bangkok, Thailand – 12 November 2019 – Indorama Ventures Public Company Limited (IVL) announced financial results for the third quarter of 2019.

Highlights of 3Q19 Performance:

  • Volume growth 23% year-on-year (yoy) to 3.3 million tonnes though Revenue lower 3% to US$2.8 billion due to lower product prices dragging Core EBITDA lower by 31% to US$281M (Last twelve months 3Q19: US$ 1.26B)
  • Operating cash flow (OCF) growth 47% yoy to US$405M (LTM3Q19: US$ 1.3B) reflects management actions on working capital optimization and extracting efficiencies as net working capital reduced by three days yoy.
  • Dividend payout at Thai baht 1.4 per share in LTM3Q19 due to strong cash flows, much higher than the stated policy of 30% of net profit
  • Company credit rating re-affirmed to AA- by TRIS after the announcement of Spindletop (Huntsman assets) acquisition.


Volume growth driven by 5% organic and 18% inorganic growth. Organic growth reflects the end demand growth in IVL businesses.

Net operating debt to equity reported at 0.61 times with strong operating cash flow. The perpetual debenture of THB 15b was refinanced at 200 basis points lower than the rate of the debenture.

The Huntsman asset purchase (hereinafter called Spindletop) is IVL’s largest and most strategic acquisition to date and on track to complete by 1Q20. Adjusted EBITDA, under the IVL definition for these assets, for 3Q19 is US$122M and LTM3Q19 is US$360M. The acquisition strategically fits with IVL’s US gas cracker and oxides investment as it provide scale benefits and improved operating capabilities. Additionally the surfactants downstream business and the propylene oxide business create opportunities for IVL to grow in differentiated businesses while retaining leadership in PET. Post completion of the acquisition in 1Q20, IVL expects to extract additional synergies of US$ 100M from project “prosperity” and operational excellence initiatives.

IVL sees cash flow growth from 2020 to 2023 following the startup of its US gas cracker in 1Q20; completion of the Spindletop acquisition in 1Q20; continued focus on working capital improvement; reinforcing its customer-centric approach; completion of the Corpus Christi project by 4Q21-1Q22; extraction of synergies in mobility, lifestyle and hygiene verticals of fibers segment as well as focus on organic growth and innovation.

IVL is committed to PET recycling growth and the circular economy with its mechanical and chemical recycling capabilities. Recently IVL with Coca-Cola and other partners helped convert marine waste into recycled PET for the first time. With an allocated investment budget of one billion US dollars by 2023, IVL is set to grow its current eleven PET recycling operating sites through organic and inorganic means to meet customer and consumer needs.