Press Release
IVL Earnings
Bangkok, Thailand - 23 September 2011 - Indorama Ventures Plc, the world's largest integrated polyester value chain producer, stressed that the ongoing problems in the European Union and the United States is not having any kind of impact on the company's operations and on the contrary the crisis was likely to offer opportunities for it to expand its business.
"There has been no impact on the sales volume or the margins from the crisis in that region," Rathian Srimongkol, the vice chairman of board of directors of the firm said during the extraordinary general meeting of shareholders.
"There has been no drop in profit or margins and on the contrary the volume during the third quarter has risen slightly, while it is likely to continue to rise in the later part of this year and next."
He added that 2012 looks like a better year for Indorama as the firm would be able to realize the earnings from the various acquisitions it has undertaken over the past few years fully.
Currently about 30% of the firm's revenues are from Europe, 35% from the United States and the rest are from around the world, but none of these markets have had an impact from the ongoing crisis.
Mr. Rathian was answering questions from the investors who gathered to approve the company's plans to issue up to 25 billion Baht in bonds. The bonds which will be issued at a later date, depending on the needs and the market conditions, won the approval of the shareholders. IVL recently undertook its first corporate rating process and gained an A+ rating with stable outlook from TRIS.
The firm hopes to lower its interest cost which currently stands at around 3.6% or about 1.8 billion baht annually with the help of these bonds.
Indorama Ventures, which has over the years been actively undertaking various acquisitions said that the current crisis was not going to make any dent to its earnings potential because of the simple fact that it was focusing on basic products such as PET bottles which are recession resistant as was clearly evident during the 2008 economic crisis.
Dilip Kumar Agarwal, a director of Indorama Ventures and also the head of the PET business, added that the firm during 2008 crisis took the opportunity to acquire assets and has successfully managed to integrate them into the group's businesses.
"Crisis is always an opportunity; the deal for Wellman International is good value and during 2008 we acquired the assets of Eastman at very low rates. If the businesses are strategically fitting the company portfolio and the returns follow our stringent hurdle rates and specifications, it would be worth looking into," Mr. Agarwal said, adding that there was nothing imminent at the moment.
Indorama Ventures over the years has seen a sharp increase in its operations thanks to its strategy of acquiring assets at below replacement cost and turning them around.
Commenting on the issue of dividends Mr. Rathian said that the firm has a policy of paying 30% of the profits in dividend payout and that "this year's dividend would not be less than those paid during the previous year."
"There has been no impact on the sales volume or the margins from the crisis in that region," Rathian Srimongkol, the vice chairman of board of directors of the firm said during the extraordinary general meeting of shareholders.
"There has been no drop in profit or margins and on the contrary the volume during the third quarter has risen slightly, while it is likely to continue to rise in the later part of this year and next."
He added that 2012 looks like a better year for Indorama as the firm would be able to realize the earnings from the various acquisitions it has undertaken over the past few years fully.
Currently about 30% of the firm's revenues are from Europe, 35% from the United States and the rest are from around the world, but none of these markets have had an impact from the ongoing crisis.
Mr. Rathian was answering questions from the investors who gathered to approve the company's plans to issue up to 25 billion Baht in bonds. The bonds which will be issued at a later date, depending on the needs and the market conditions, won the approval of the shareholders. IVL recently undertook its first corporate rating process and gained an A+ rating with stable outlook from TRIS.
The firm hopes to lower its interest cost which currently stands at around 3.6% or about 1.8 billion baht annually with the help of these bonds.
Indorama Ventures, which has over the years been actively undertaking various acquisitions said that the current crisis was not going to make any dent to its earnings potential because of the simple fact that it was focusing on basic products such as PET bottles which are recession resistant as was clearly evident during the 2008 economic crisis.
Dilip Kumar Agarwal, a director of Indorama Ventures and also the head of the PET business, added that the firm during 2008 crisis took the opportunity to acquire assets and has successfully managed to integrate them into the group's businesses.
"Crisis is always an opportunity; the deal for Wellman International is good value and during 2008 we acquired the assets of Eastman at very low rates. If the businesses are strategically fitting the company portfolio and the returns follow our stringent hurdle rates and specifications, it would be worth looking into," Mr. Agarwal said, adding that there was nothing imminent at the moment.
Indorama Ventures over the years has seen a sharp increase in its operations thanks to its strategy of acquiring assets at below replacement cost and turning them around.
Commenting on the issue of dividends Mr. Rathian said that the firm has a policy of paying 30% of the profits in dividend payout and that "this year's dividend would not be less than those paid during the previous year."