08.15.23
Indorama Ventures Public Company Limited (IVL) reported marginally improved quarterly earnings as the company’s inherent advantages and continued focus on improving competitiveness helped bolster its business amid a continued weak operating environment.
Indorama repoted revenue of $4 billion, a decline of 1% quarter on quarter. Indorama Ventures achieved reported EBITDA of $321 million in 2Q23, an increase of 7% QoQ and a decline of 68% YoY.
Management is taking steps to conserve cash and safeguard the company’s competitive advantages as the global industry is impacted by increased capacity and lower margins with China boosting exports to offset muted domestic demand.
Volumes are expected to improve in the second half of the year, with all three of Indorama Ventures’ business segments benefiting from the management measures and a gradual improvement in the outlook for the industry. Combined PET, the company’s largest segment, posted reported EBITDA of $194 million, a 37% increase QoQ as destocking eased in most markets and supported stable volumes.
Fibers segment achieved reported EBITDA of $20 million, a decrease of 37% QoQ, impacted by lower margins in the Lifestyle vertical and weak demand for Hygiene products in Europe. Integrated Oxides and Derivatives (IOD) segment posted a 27% decline in QoQ Reported EBITDA to $94 million amid destocking in Crop Solutions market. Volumes will continue to be supported by reducing levels of destocking in the downstream portfolio.
“Indorama Ventures’ businesses are structurally well positioned,” said DK Agarwal, deputy group CEO of Indorama Ventures. “We are using the slowdown to optimize our asset footprint and drive operational excellence to remain in the first quartile cost position in the markets we serve."
Indorama repoted revenue of $4 billion, a decline of 1% quarter on quarter. Indorama Ventures achieved reported EBITDA of $321 million in 2Q23, an increase of 7% QoQ and a decline of 68% YoY.
Management is taking steps to conserve cash and safeguard the company’s competitive advantages as the global industry is impacted by increased capacity and lower margins with China boosting exports to offset muted domestic demand.
Volumes are expected to improve in the second half of the year, with all three of Indorama Ventures’ business segments benefiting from the management measures and a gradual improvement in the outlook for the industry. Combined PET, the company’s largest segment, posted reported EBITDA of $194 million, a 37% increase QoQ as destocking eased in most markets and supported stable volumes.
Fibers segment achieved reported EBITDA of $20 million, a decrease of 37% QoQ, impacted by lower margins in the Lifestyle vertical and weak demand for Hygiene products in Europe. Integrated Oxides and Derivatives (IOD) segment posted a 27% decline in QoQ Reported EBITDA to $94 million amid destocking in Crop Solutions market. Volumes will continue to be supported by reducing levels of destocking in the downstream portfolio.
“Indorama Ventures’ businesses are structurally well positioned,” said DK Agarwal, deputy group CEO of Indorama Ventures. “We are using the slowdown to optimize our asset footprint and drive operational excellence to remain in the first quartile cost position in the markets we serve."