Thailand based, Indorama Ventures Public Company Limited (IVL) said in the first nine months of fiscal 2014, its core net profit skyrocketed in triple digits, from the same period of previous fiscal year.
IVL, a producer of intermediate petrochemicals reported core net profit of THB 3.6 billion in the first nine months of fiscal 2014, up a staggering 129%.
The staggering hike in core net profit mainly came from dipping crude oil prices, a strong US dollar and a weakening Euro, Mexican Peso, Turkish Lira and Indonesian Rupiah.
Total revenues at ILV in the period under review rose 10% from the same period of fiscal 2013 to THB 189.3 billion, while core EBITDA expanded 32% to THB 14.4 billion.
“Higher volumes and sales primarily arose from acquisitions, debottlenecking projects, utilization rate improvements and the increased proportion of high value-added, or HVA, business,” IVL explained.
According to CEO Aloke Lohia, the rapid decrease in price of crude oil, the strong US dollar and low interest cost environment is a positive for the overall business.
The HVA segment contributed 21% of total volume, 33% of revenue and 40% of core EBITDA in the first nine months of fiscal 2014.
IVL said it is relatively more resilient and better hedged to crude oil volatility, which is reflected in its inventory gain of Baht 80 million in the third quarter this year.
The petrochemicals producer continued to lower its net operating debt to equity, bringing it down to 1.15 times as of September 30, 2014.
It slid further down to 0.73 times, following the successful placement of the company’s perpetual debentures at the end of October.
IVL successfully placed THB 15 billion on October 31, 2014, which, it said, is the largest ever perpetual debentures issued by a corporate in Thai Baht.
IVL added that, Thailand rating agency - TRIS, reaffirmed the company’s A+ Rating in October 2014.
"We are pleased with our first nine months’ results, an outcome of our relentless focus on delivering on our strategic priorities,” Aloke Lohia added.
He informed, “In future quarters, significant fall of crude oil is positive for demand in our PET and Fibers portfolio and for improving margins in the HVA portfolio." (AR)
