Bangkok, Thailand – 9 November 2020 - Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced its third quarter 2020 financial results as follows.
3Q 2020 Performance Summary:
- Reported net profit is THB 380 million in 3Q20 and THB 1,104 million for 9M20. Our performance this year provided us significant insights into the growth of the future market, while the company remains on a path towards enhanced incremental performance progress, from 4% ROCE towards our target ROCE of 15% by 2023.
- In 3Q20 we delivered record sales volume of 3.6 million tonnes, registering growth of 18% year-on-year (YoY). Sales volume grew to 3.2 million tonnes, or 4% YoY on a comparable basis. This continuous volume growth is a clear indication of the resilient nature of the company’s products and the global access we have to our customers.
- IVL achieved an operating cash flow of US$ 354 million in 3Q2020 while operating cash flow for 9M20 was US$994 million, thus providing us ample liquidity of US$ 2.5 billion in cash and cash equivalents as well as unused credit lines.
- Project Olympus (a business transformation and cost excellence project) delivered a savings of US$ 21 million in 3Q20 and US$ 64 million in 9M20. Our full year budget of US$ 76 million in savings is expected to exceed targets by over 15% in 2020 with relentless focus on multiple initiatives.
- IVL has embarked in 2020 on a transformation journey that will enhance its business excellence and aims to deliver US$ 582 million of additional, sustainable, EBITDA by 2023. This target has been expanded from the US$ 352 million announced at our Capital Markets Day at the start of 2020 after a rigorous analysis process and the support of relevant domain experts to validate our operating teams’ initiatives in all of our three major business segments globally.
- We are making progress towards our ESG targets and our pledge to recycle 750,000 tonnes of post-consumer PET, with a commitment of US$ 1.5 billion towards our ESG and recycling infrastructure globally by 2025.
- We have strengthened our leadership and recruited both digital and Lean Six Sigma function leaders to support technological adaption across IVL.
- IVL is well on its way to implement S4 Hana (ERP) across our global operations and introduced a Global Business Service (GBS) office which will hallmark the delivery of our transformation journey.
- We have organized IVL leadership in a clear manner to leverage and deliver performance. Now in Mr. DK Agarwal, we have one CEO responsible for all our three reporting segments and we have moved all enabling functions under our Chief Strategy Officer. Meanwhile, our Chief Financial Officer and Chief Human Resources Officer are making appropriate governance structures for organizational effectiveness.