Bangkok, Thailand – 26 February 2020– Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced its full year and fourth quarter 2019 financial results as follows.
2019 Performance Summary
IVL registered volume growth of 18% in 2019, driven mainly by inorganic expansion. Industry-wide spreads declined to historical lows in 2019, leading to a 20% reduction in IVL’s core EBITDA. Operating cash flow through this period increased by 33% to $1.3B, as a result of lower prices and operational excellence. IVL has proposed a dividend of THB1.225/share for 2019.
IVL concurrently undertook several transformative initiatives that were announced on 4th Feb 2020 at its Capital Market Day and are expected to generate benefits starting in 2020 and targeted to lead to $350 million in run rate cost savings by 2023. These initiatives and the strategic acquisition of the Huntsman Integrated Ethylene and Propylene Oxide (EO & PO) assets (code-named Spindletop); footprint expansion into a growing market in India; formation of a dedicated team to grow the PET recycling business; continued focus on working capital optimization coupled with an increased emphasis on leadership development are the key strategic priorities for the group.
Mr. Aloke Lohia, Group CEO of Indorama Ventures said, “IVL now has three strong growth engines to generate continued returns for its stakeholders. The first is the Combined PET Segment, which includes its key feedstocks and recycling business; the Integrated Oxides and Derivatives Segment, which includes the recent acquisition of the Spindletop assets; the completed IVOL gas cracker in Louisiana; and lastly the Fibers segment, which serves Mobility, Hygiene and Lifestyle verticals.
Our global reach, with around 80% of capital invested in Europe and Americas, makes our business model resilient to events happening in any particular country or region. On the other hand, our end-product strategy of serving the packaging, hygiene and safety needs of society, leads to our growth in excess of GDP growth. Going forward, we will reinforce our strengths via 5 strategic priorities: cost transformation, asset full potential, adjacency growth, recycling leadership and leadership development.”