Bangkok, Thailand – 13 August 2020 – Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced its second quarter 2020 financial results as follows.

2Q 2020 Performance Summary

IVL achieved a core EBITDA of US$305M and an operating cash flow of US$300M. Core net profit grew to US$82M compared with US$50M in 1Q2020. Liquidity in the company remains high with cash and cash equivalents of US$0.8B and unutilized credit lines of US$ 2.0B. With Core EPS of THB0.43 up from THB0.25 per share in the first quarter.

The second quarter performance was driven by strong PET demand, higher Integrated PET spreads, lower conversion costs, higher demand in hygiene fibers segment and normalization of 1Q20’s PO/MTBE shutdown.

Results in 2Q20 were adversely impacted due to lower crude oil price impacting margins of MTBE and Integrated EG as shale gas lost its advantage against Naphtha-based producers. The Mobility & Lifestyle fibers segment were also severely impacted due to lockdowns, with lower consumer spending on durables and travel restrictions. Around 80% of our products cater to non-durable sectors where the demand impact caused by COVID-19 and margin meltdown due to crude collapse was not felt.

IVL’s portfolio serving end-markets of food, beverages, personal care and hygiene were positively influenced during the pandemic. IVL’s products that are used for electronics and films for screens was steady. The automotive and oil related segments saw severe drops in off-take and for the first time we saw the shutdown of the retail segment, which impacted our apparel segment.

The acquisition of Spindletop and startup of Lake Charles cracker did not provide us the typical earnings that we had built into our business case but our strong balance sheet and the strategic fit of these gas-based olefin businesses serving our MEG integration and, importantly, our diversification into growth businesses such as surfactants, green fuels and urethanes is re-affirmed.

With the opening of the global economy, easing of lockdowns and improvement in crude oil prices, the Company expects to see improved performance of the laggards of 2Q20. Our investments over the last decade in leading global businesses with intent to grow and diversify our portfolio for long-term growth has yielded above average returns over the cycle, while we remain focused on supporting, supplementing and leveraging our flagship business of recyclable PET.

Mr. Aloke Lohia, Group CEO of Indorama Ventures said, “In these unprecedented times of economic and geopolitical volatilities, we are satisfied that around 80% of our business portfolio servers non-durables where demand was healthy and actually contributed to margin growth and strong liquidity. This is evident in our sales volumes and strong cash flows. We have seen early signs of recovery on the other 20% of our business with the easing of lockdowns and improvement in oil prices. The opportunities are immense and we look forward to leveraging our unique geographical and business portfolio. We remain steadfast on our five strategic priorities - cost transformation (saving us $350m by 2023, achieved $44m in 1H20), business full potential, adjacent growth opportunities, recycling leadership and people/leadership development.

As we look ahead to the second half of 2020, we feel confident in our business model as our regionalized footprint, coupled with the inelastic nature of our products, allows us to continue to sell at all times and create a steady stream of operating cash flows.”

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About Indorama Ventures
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).

Indorama Ventures is headquartered in Bangkok, Thailand with global operating sites in

EMEA: The Netherlands, Germany, Ireland, France, UK, Italy, Denmark, Lithuania, Poland, Czech Republic, Luxembourg, Spain, Turkey, Nigeria, Ghana, Portugal, Israel, Egypt, Russia, Slovakia, Austria, Bulgaria
Americas: USA, Mexico, Canada, Brazil
Asia Pacific: Thailand, Indonesia, China, India, the Philippines, Myanmar , Australia

Contacts
Richard Jones
Tel: +662.661.6661 ext. 680
richard.j@indorama.net

Naweensuda Krabuanrat
Tel: +662.661.6661 ext. 247
naweensuda.k@indorama.net

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