(Following is a press release from Indorama Ventures Pcl
via an electronic mail. The statement was confirmed by the
IVL casts optimism for 2013
EBITDA rises 17% over Q2 2012
Bangkok, Thailand - 16 November 2012 - Indorama Ventures Public
Company Limited (IVL), the world’s leading vertically integrated
Polyester Value Chain producer, announced its Q3 2012 results.
EBITDA rose to US$ 122 million compared to US$ 105 million in Q2
2012 and net profit rose to US$ 50 million from US$ 39 million.
Sales of US$ 1.7 billion were on a par with Q3 2011, though
slightly down on Q2 2012. While consolidated IVL’s results
improved quarter-on-quarter, year-on-year results were weaker
than Q3 2011 reflecting poor sentiments in Asia and Europe at
While quarter-on-quarter results were a reminder of IVL’s
strength as a global player, with the benefits of economy of
scale and superior product offerings that kept utilization rates
steady. The Company still saw weak margins in Asia led by
concerns about the Chinese economy, which remained depressed
over several quarters, and poor margins for Asian PTA caused by
Contrasting with this, the MEG, PET and Polyester businesses in
North America performed well as underlying fundamentals remained
strong while European businesses were slightly weaker due to the
prolonged economic crisis. North America represents around 40%
of IVL’s US$ 5.1billion in consolidated sales for the nine
months ending Q3 2012.
“IVL has continued to move forward with our business plans. We
expect the industry to start picking up again in 2013 and we
want to remain a highly competitive and low-cost leader, focused
on returns for our shareholders” said Mr. Aloke Lohia, Group CEO
of Indorama Ventures.
“We have acquired businesses over the past few years that have
helped us to consolidate the industry and improve the quality of
our earnings. Our management is focused on allocating capital
expenditure only on very high return opportunities where we can
create attractive returns across cycles.”
The company has approved several such projects including a
brown-field PET plant in North America with an annual capacity
of 540,000 tonnes for startup in 2015. The European arm of IVL
will in Q4 2012 startup its 200,000 tonnes per annum PET plant
at Rotterdam followed by a PTA de-bottleneck to 600,000 tonnes
per annum at the same site by 2015. The company will also de-bottleneck its Polish site to take advantage of this growth
market and its virtual integration with third party PTA. On the
Polyester front, IVL’s flagship plant with annual capacity of
300,000 tonnes is due to startup in 2013 in Indonesia, the
highest growth region in ASEAN.
“Our strategic initiatives are targeted to continuously improve
shareholders returns across cycles while maintaining our global
leadership in the Polyester value chain. We have seen clear
evidence of our strategy delivering value even in the trough
cycle that we are in at present” said Mr. Lohia.
Indorama Ventures PCL
+662.661.6661 ext. 680
Indorama Ventures PCL
+662.661.6661 ext. 247
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