BANGKOK, Thailand — November 10, 2022 — Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, today reported a resilient year-to-date performance as management leveraged the company’s unique global integrated model to drive earnings through a challenging macroeconomic environment.
IVL posted Core EBITDA of US$606 million in 3Q22, a 39% increase YoY and a decline of 20% QoQ as the strong tailwinds that drove record earnings into 2022 began to normalize in the third quarter. Management have redoubled efforts through the year to mitigate the impact of unprecedented global economic fluctuations triggered by instability in Europe and continued lockdowns in China.
Strategic acquisitions, including Oxiteno, are bolstering IVL’s increasingly diverse geographic footprint and product portfolio, supporting earnings through volatile economic conditions. Revenue declined 10% QoQ in 3Q and grew 27% YoY as Combined PET, the largest business segment, saw steady volumes through the year, and new portfolio additions performed strongly, such as surfactants in the Integrated Oxides and Derivatives segment. With more than 70% of IVL’s platform catering to consumer daily necessities, demand remains stable.
Mr. D K Agarwal, CEO of Indorama Ventures, said, “We are pleased with our performance across the business cycle. Our management is working hard to extract the advantages that we enjoy in terms of geographic leadership, product diversity, and an unmatched customer base of global household brands. Together with our habitual lens on cost management, these actions will help us to weather the economic challenges and continue to focus on our long-term potential.”
Combined PET (CPET) segment achieved YTD Core EBITDA of US$1,192 million, an increase of 42% YoY. Core EBITDA in 3Q22 rose 27% YoY to US$327 million, and declined 24% QoQ, as business remained steady across operations apart from in Europe where peak energy prices continue to put pressure on demand and margins.
Integrated Oxides and Derivatives (IOD) segment posted YTD Core EBITDA of US$604 million, a rise of 137% YoY, due to integration benefits from the Oxiteno acquisition in April and robust demand for surfactants products. The segment achieved 3Q Core EBITDA of US$219 million, an increase of 82% YoY, and a decline of 16% QoQ as margins weakened in the Integrated Intermediates portfolio amid overcapacity and the ongoing pandemic lockdown in China.
Fibers segment posted YTD Core EBITDA of $189 million, a rise of 2% YoY. 3Q Core EBITDA increased 2% YoY, and decreased of 11% QoQ, to US$49 million. The Lifestyle fibers business continues to be impacted by the lockdown in China, while management in the Hygiene and Mobility verticals in Europe are effectively managing high energy costs.
Posted: November 10, 2022
Source: Indorama Ventures Public Company Limited (IVL)