MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced its results for the second quarter 2016, as per the company's report.
The company’s core profit after tax and non-controlling interests (NCI) climbed to a record Baht 2.9 billion in 2Q16, reflecting very strong growth of 74% year-on-year (YoY) driven by margin recovery in the PET segment and contributions from additional feedstock volumes, primarily PTA from new acquisitions IVL Spain, formerly Cepsa Spain, and Aromatics Decatur, formerly BP Decatur in the US as well as High Value-added product volume thanks the contribution of IPA and NDC from those acquisitions.
The last twelve months (LTM) second quarter 2016 Core EBITDA saw PET sector growth of 19% underpinned by excellent growth in the Fibers segment of 46% year-on-year. Regional earnings in the HVA portfolio all grew both quarter-on-quarter and year-on-year with core LTM EBITDA topping Baht 12 billion from Baht 9 billion the previous year.
The second quarter saw a non-cash inventory gain of Baht 0.6 billion as a result of the increase in oil prices that was further supplemented by net extraordinary income of Baht 2.5 billion, primarily coming from a gain on bargain purchase on the IVL Spain acquisition and resulted in a reported net profit of Baht 5.9 billion. For the last twelve months we achieved net profit of Baht 10.8 billion or EPS of Baht 2.08.
Mr. Aloke Lohia, Group CEO of IVL commented, "Our second quarter results continue to show improvement across our segments. The recent acquisitions of IVL Spain and Aromatics Decatur reflect our unique business model and strategic choices that made IVL ever more resilient and efficient. Our blend of focused businesses will transform us as one of the most competitive producers in our space and provide us downside protection on volumes and integrated margins while preserving our upside potential as the industry recovers. IVL is now the most integrated global company in our industry."
Commenting on the global business outlook, Mr. Lohia said, "North America results are mixed as our ethylene oxide and glycol (EOEG) earnings were impacted by a catalyst turnaround while Fibers and PET, in both necessities and HVA, showed superior performance and achieved strong Core EBITDA growth YoY. The strong demand for necessities in Asia continues to overcome chronic overcapacity, especially in PTA, and we are cautiously optimistic amid signs of a slow recovery that is led by the restructuring of many non-core underperforming assets and a very cautious build-up of new capacity. The EMEA region has enjoyed absolute growth of core EBITDA on a QoQ and YoY basis and we expect to see continued growth of our products, led by the Rotterdam PTA expansion and improving IPA production, going forward."
"Looking ahead, our diversified portfolio of products, geography and markets are serving as a catalyst for future growth. IVL will continue to create synergies as well as accelerate the transformation of our operations, which will help us outperform the industry benchmarks and create lasting value of our stakeholders," Mr. Lohia concluded.
As MRC informed previously, in January 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. for an undisclosed sum. Under the terms of the agreement, Indorama Ventures purchased the Decatur complex including working capital and related infrastructure and assume certain contracts with suppliers and customers. The deal was closed in early 2016. Located on 1,000 acres in Northern Alabama, the complex can produce one million tons per year of PTA, as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.