Indorama Ventures Reports Stable Quarterly Earnings in 3Q 2023

Indorama Ventures Public Company Limited (IVL) reported stable third-quarter 2023 earnings as the company’s management focuses on conserving cash and improving competitiveness to bolster performance in a continued period of weakness in the global chemical industry.

Indorama Ventures achieved EBITDA of $324 million in 3Q23 from revenue of $3.9 billion, an increase of 1% QoQ and a decline of 37% YoY, impacted by a weak economic environment, geopolitical tensions, and continued post-pandemic disruptions in global markets.

Sales volumes dropped 5% from a year ago to 3.6 million tons as China recovers from the pandemic more slowly than expected and an extended period of destocking in the manufacturing and chemical sectors continues to normalize from unprecedented levels last year.

Management continues to focus on conserving cash, realizing efficiency improvements, and optimizing the company’s operational footprint to boost profitability. These efforts resulted in positive operating cash flow of US$410 million in the quarter, positive free cash flow of $79 million year to date, and room for further reductions in working capital going forward.

“I am pleased to report that we are making meaningful progress on the management actions that I mentioned in the last quarter,” DK Agarwal, deputy group CEO of Indorama Ventures, said. “In the short term, these are resulting in positive free cash flow generation, while in medium term we continue to defend aggressively our first-quartile cost position to emerge with enhanced profitability post the return to normalization in 2024 from the challenging operating environment that the industry faces.”