Indorama Ventures Posts 1Q 25 Results

Indorama Ventures Public Company Limited (IVL) posted a softer performance in the first quarter as persistent economic headwinds continue to weigh on commodity markets, while scheduled maintenance and adverse weather impacted production at US olefin sites in its key CPET segment.

Indovinya, Fibers and Indovida (newly formed Packaging business), being niche and specialities-oriented, performed to satisfaction.

Indorama Ventures reported adjusted EBITDA was $276 million in 1Q25, a 23% decline quarter-on-quarter (QoQ) and 30% year-on-year (YoY). This is adjusted for a $12 million impact of a winter freeze in the US. Broader macroeconomic themes, such as higher interest rates, elevated energy costs, and geopolitical conflicts, continue to weigh on the industry, while substantially lower ocean freight rates during the quarter reduced import parity pricing, a bedrock of Indorama’s local-for-local business model.

Even as the chemical industry continues to be beset by one of the worst downturns in recent history, Indorama Ventures is benefiting from the strident ‘self-help’ actions under the company’s transformational IVL 2.0 program to optimize its business and leverage its scale and leadership to take advantage of the fundamental long-term changes in the industry.

These helped reduce fixed costs by $6 million QoQ and $28 million YoY, mostly from asset optimizations and other management initiatives. Operating cash flow surged to $416 million, allowing the company to reduce net debt by $100 million from December 2024 as it reinforces balance sheet discipline.

“We continue to focus on self-help actions that are building resilience and optimizing our industry-leading footprint in all our markets,” said Aloke Lohia, group CEO of Indorama Ventures. “I am optimistic that these decisive measures are not only helping us to navigate through the current downcycle but are also positioning us to seize the long-term growth opportunities that change always brings.”