Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported a strong 3Q 2021 performance amid record production volumes, said the company.
The company maintained its positive outlook for the rest of the year and 2022, noting caution as headwinds including higher energy prices and supply chain disruptions weigh against resurgent consumer demand.
IVL reported EBITDA of USD478 million in Q3 versus USD552 million in the previous quarter and USD240 million a year earlier. Production volumes reached 3.73 million metric tons, a record, as the global recovery drove consumer demand for IVL’s products.
As the global economy recovers from the pandemic, consumer appetite and increasing Brent crude oil prices are testing supply chains and driving a commodity boom, with manufacturers running at full capacity. This has driven increases in freight prices and a shortage of materials.
Mr. D K Agarwal, CEO of Indorama Ventures, said, “The recovery in major economies from the pandemic has benefited us through the year, and we expect strong demand for our products to continue into next year. However, the recovery is uneven as some nations in Asia are slower to reopen, and resurgent consumer demand is being met with higher energy prices and supply chain disruptions. Our business model of integrated and regional supply across a diversified geographical and product base is proving its robustness. Building sustainability across all our businesses is a key focus as our colleagues work tirelessly towards a future ready organization."
Still, IVL posted a solid YTD performance, ending the first nine months of 2021 with EBITDA of USD1,512 million, up 123% YoY. The Integrated Oxides & Derivatives (IOD) segment will start to reap the full benefits of the hot commissioning of the Lake Charles gas cracker (IVOL) in Q4 and beyond, as well as continued advantaged shale gas economics.
In Q3, Project Olympus, the company’s cost saving and business transformation project, achieved US$63 million in efficiency gains, and is on track to achieve a total US$610 million of savings by 2023. IVL also implemented enhanced disclosures in governance, strategy, risk management, and metrics and targets, and launched a comprehensive financial policy and governance structure to accelerate environmentally driven projects.
We remind, Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, celebrated the completion of a plant to manufacture high-performance nylon yarn for automobile airbags. The new plant in Rayong, Thailand, was constructed by Toyobo Indorama Advanced Fibers Co., Ltd. (TIAF), a joint venture that Indorama Ventures established with Toyobo Co., Ltd in November 2020.
mrchub.com