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Indorama Ventures reports earnings growth for 2014

Indorama Ventures has reported full year core earnings of THB 5.1 billion, an increase of 146% over 2013.

23rd February 2015

Innovation in Textiles
 |  Bangkok

Industrial, Sustainable, Medical/Hygiene, Packaging

The company reported full year core earnings of THB 5.1 billion, an increase of 146% over 2013. After extraordinary and non-cash items, reported earnings were THB 1.48 billion, showing an increase of 12% over 2013. Core EBITDA grew by 30% over 2013, to THB 19.5 billion in 2014.

Raw material prices fell in the second half of 2014, with crude oil, releasing cash flow on lower absolute prices. Cash from operations in 2014 amounted to THB 22.4 billion, an increase of 114% over 2013.

Portfolio

“The company’s strategic focus on developing a high value-added (HVA) portfolio has started to bring in rewards,” commented Aloke Lohia, Group Chief Executive Officer and Vice Chairman of Indorama Ventures.

“We are developing a portfolio that has multiple assets in complementary operations within the hygiene fibers space and are developing further into automotive and industrial fibers and yarns, especially where they pertain to health and safety such as tires, safety belts and airbags.

Growth strategy

“Between the higher profits enjoyed by the Fibers and Yarns business and ongoing cost savings through operational excellence projects globally, the core EBIDTA has grown 30%,” said Aloke Lohia.

“While we have seen the impact of crude oil prices falling leading to inventory write-downs in the fourth quarter, the benefit has been improvements to our cash flow from operations as we use less working capital on lower prices.

“We are delivering on our strategy to acquire businesses that would be accretive to the bottom line and cash flow. Our necessities business in PET and packaging materials is growing. Geographically, we are developing our service to major customers in emerging market, notably in Turkey, where we are now a major PET player.”

The PET segment

The PET business division represented 50% of IVL production and 48% of IVL core EBITDA in 2014. The segment saw production increase from 2.9 MMT in 2013 to 3.1 MMT in 2014, a growth of 7% year on year. Due to an increase in production the segment achieved a Core EBITDA of US 286 million in 2014 against US 248 million 2013, a growth of 15% year on year.

Fibers and Yarns

This segment saw production increase from 0.91 MMT in 2013 to 1.15 MMT in 2014, a growth of 26% year on year.

Enhancement of HVA products with the acquisition of PHP Fibers led to a fast increase in margins, the company reports. The Fibers and Yarns Division achieved a Core EBITDA of US 126 million in 2014 against US 95 million in 2013.

www.indoramaventures.com

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