BANGKOK, Thailand — November 9, 2017 — Indorama Ventures Public Co. Ltd. (IVL), a global chemical producer, today reported financial results for the third quarter 2017.
The Company Q3 Core EBITDA rose 34 percent YoY to a new high of $291 million. Core Net Profit increased 68 percent to $137 million, mainly driven by higher operating rate, higher volume from its EOEG facility post turnaround in 2Q17, higher PET margins and the full quarter earnings impact of the Glanzstoff acquisition. Operating profit grew by 46 percent to $198 million with a production volume of 2.39 million tonnes. For three consecutive quarters, the company has exceeded $100 EBITDA/tonne, and reached $122 in 3Q17. With additional tailwinds from strong volumes and industry supply tightness, due to financial problems being faced by certain competitors in Europe and America, the company has further grown its top line and margins, which is continuing towards the end of the year.
Commenting on the results, Aloke Lohia, Group CEO, said: “The third quarter concluded a great first nine months for IVL. We delivered record earnings, beating expectations in all key financials metrics. This strong performance demonstrates the resilience of our business portfolio, and the benefits of our uniquely diversified and integrated business model, which are clearly bearing fruit with increasing momentum. Meaningful developments in the PTA and PET businesses, the announced capital expenditure programs and the newly acquired businesses will all play a meaningful role in enhancing earnings growth in 2018 and beyond.”
During the quarter, the Company has successfully completed the acquisitions of DuraFiber in Mexico and France as well as announced expansion projects in China and Indonesia, to strengthen the Fiber HVA portfolio, which will drive growth and margin accretion. In September 2017, IVL made its debut in the Dow Jones Sustainability Index and was ranked among Top Five of all chemical companies globally. In another meaningful development, IVL announced the acquisition of DuPont Teijin Films, a leading global producer of high value-added BOPET and PEN films, which will further diversify the portfolio into polyester films, allowing IVL to offer customers a broader platform of related products. Meanwhile, the Company is on track to complete its 440,000 metric tons per annum US Gas Cracker project and expects commissioning to be complete in the next few months and start-up early 2018.
Commenting on the outlook for full year 2017, Lohia said: “We expect the positive momentum to continue in the fourth quarter despite the typical seasonal weakness, and remain confident in our ability to deliver on our commitments. Given the strength of our year-to-date financial results, on the back of a better margin environment; higher return HVA products; continued volume growth and the realization of full benefits from our strategic actions, we believe 2017 to be another year of solid growth. While it is our stated goal of doubling the EBITDA every five years, based on the LTM 3Q17 performance, we have achieved this target in four years itself.”
“We have a diverse revenue stream based on a powerful mix of capabilities, geographies and businesses. Looking ahead, we remain focused on accelerating growth and delivering the full potential of all revenue streams. Today, IVL has a clear and focused strategy to drive results, and we will continue on this trajectory to deliver long-term value to our shareholders,” Mr. Lohia concluded.
Posted November 9, 2017
Source: Indorama Ventures