Indorama Ventures Public Company Limited (IVL), a leading vertically integrated polyester value chain producer, saw revenues rise by US$678 m to $6.78 billion in 2012. While the commodity polyester value chain was weak, the company says, operational excellence improvements, a Brownfield PET capacity addition at Rotterdam, the acquisition of FiberVisions’ global hygiene business as well as the addition of the Indorama Ventures (oxide and glycols) business in North America, have potentially offset the weak polyester chain margins in Asia.
IVL's 2012 consolidated EBITDA is $453 million, while consolidated net profit after tax and minority is $148 million, and consolidated operating cash flow $471 million.
Consolidated EBITDA declined by 19% from continuing oversupply of PTA in Asia that has weakened spreads across the value chain. The company believes it has seen the worst of the Asian-led weakness and expects to see a gradual rebound over the 2013-2014 period. Therefore, IVL has recommended a final dividend of THB 0.18 for 2012, amounting to THB 0.36 for the full year 2012, an increase from 31% payout for 2011 to 38% payout for 2012.
IVL generated $471 million of net cash flow from operations in 2012, compared to $334 million generated in 2011. The net operating cash flow has grown in 2012 in line with investments and IVL’s liquidity ratio compares favorably with regional and global peers in chemicals despite lower earnings in 2012.
“IVL has set clear objectives for 2013 and beyond which will pave the way to achieve continued year on year growth of both top and bottom line,” says Aloke Lohia, group CEO of Indorama Ventures. “IVL has continued to grow its market share in each of its segments year on year. Our strong, diversified, global platform of scale assets and competitive market reach inclusive of speciality products deliver better value to stakeholders and in turn a sustainable business.
“We remain very optimistic about the polyester value chain and IVL leadership within this chain," says Lohia. "We are well positioned to take significant advantage as the global recovery takes place. Meanwhile, we are confident that our portfolio will continue to deliver the lowest cost quartile results."
In its guidance for 2013, the IVL expects to grow revenue by 19% and EBITDA by 27%.