Indorama Ventures Public Company Limited (IVL), the world’s largest PET Company, achieved sales revenue of approximately US$ 1.9 billion in the first quarter of 2013, compared to US$ 1.6 billion revenue reported in the fourth quarter of 2012 as production volumes increased to a record level of 1.42 million tonnes.
“We feel improving sentiment across our footprint this year which is a huge welcome over last year. IVL is well positioned to benefit from the improved and disciplined outlook in China which influences global outlook,” said Mr. Aloke Lohia, Group CEO of Indorama Ventures. “The superior margin stemming from our growing portfolio of High Value Add (HVA) products will support the continued growth of the business’s earnings over time. Our management actions are to simultaneously deliver reduced total cost of sales to enhance earnings per share while providing branded, safe and reliable products to our customers.
The resilience of IVL’s business model provided the Company with cash profit of $ 83 million, compared to $76 million in the preceding quarter of 2012. PET margins recovered from historical lows and show improvements and resilience in 1Q13 as seasonal factors saw a rebound with a post-holiday buying by customers. IVL’s PET facility in China is operating at high rates taking advantage of its low conversion cost. PET expansion at Rotterdam is ramping up steadily as planned. However MEG profits were lower in 1Q13 on lower output typical for end of run catalyst cycle, but recovery remains imminent as turnaround is completed in 2Q13. MEG fundamentals remain strong and unchanged.
Lohia said. “We are on track to grow our output and earnings significantly this year and remain the Industry leader. There are exciting new applications for polyester and we continue to gain market share away from competing materials. The board has approved further investments in HVA fiber for hygiene segment in both Thailand and in USA. We expect to see continued improvements in our earnings as we leverage on our product portfolio and global footprint to produce the right products at the best total cost of delivery.”
