Bangkok--20 Feb--Indorama Ventures
Margins boost Core Net Profit 68% to $459 million
Committed Capital expenditure of $1.8 billion in 2018/2019
FY 2017 Dividend increase 50% to Baht 1.00 per share
Indorama Ventures Public Company Limited (IVL), a global chemical producer, today announced its fourth quarter and full year results for 2017.
For the full year, the Company delivered solid revenue of US$ 8,438 million, an increase of 17% year-on-year (YoY), led by ongoing strong growth in all business segments. Revenues for the PET segment grew 12%; the Fibers segment increased 15%, while the Feedstock segment grew by 28%. Core EBITDA was up 30%, while production grew by 4% reflective of a 3 dimensional improvement of product and geographic mix and the overall quality of earnings. IVL had accretive ROE at 16.5%, a strong surge over the 12.5% in 2016. Operating cash flow was healthy and rose 24% to US$ 918 million. Core Net Profit after Tax and NCI has grown by 68% YoY to US$ 459 million. Audited Net Profit was $615 million partially boosted by US tax reforms.
Mr. Aloke Lohia, Group CEO of Indorama Ventures said, "2017 has been a momentous year for Indorama Venture in more ways than one. The Company surpassed several milestones in its journey towards its stated vision of becoming a world-class chemical company making great products for society. The power of our growth strategy and diversified portfolio of products and geographies is clearly reflected in our results. We surpassed EBITDA of US$ 1 billion for the first time in the Company's history and these results are a testimony to the diversified 15,000 talented people operating our businesses."
The on-going restructuring by two of the leading PET producers in key markets of Americas and EMEA in the second half of 2017 has resulted in a structural change in the business outlook of PET, and is an opportunity for well-managed and committed producers like IVL to align supply reliability to customers. We believe that our regional manufacturing business model helps secure strategic alliances and helps take our innovative platform global.
Indorama Ventures continued to make progress on its HVA platform in 2017 by acquiring new businesses with high growth potential. The acquisition of Glanzstoff, Europe's leading tire cord and single-end cord manufacturer, alleviated and broadened the HVA portfolio mix beyond Polyester, Polypropylene and Nylon 6.6 into Rayon. The Company completed the acquisition of DuraFiber in Mexico and France, a leading producer of durable technical textiles for industrial, tire reinforcement, and specialty applications globally. The Company's HVA portfolio forms a new growth engine with the addition of tire cord fabrics in North America and Europe, enlarging and making global Indorama Ventures as a fiber partner to the automotive industry.
Our overall leverage ratio (Net Operating Debt to Equity) stands at 0.54 times, a significant reduction of 39% over previous year which gives IVL flexibility and strength to deploy capital in meaningful businesses in markets and products which have strong fit to our core competencies. Projects currently under construction and slated for completion in 2018 include the 450,000 ton gas-based, dual-feed cracker in USA, the 700,000 ton PTA plant in Portugal and the expansion of HVA automotive fibers in China. We have completed various debottlenecking projects in 2017 which will add to our volume and margins in 2018 and 2019.
The dividend yield rose in line with 63% growth in Core EPS. As a reflection of continued confidence in the operational performance and growth prospects, the Board of Directors proposed a final dividend of THB 0.55 per share, which, including the first interim of THB 0.45 per share, provides a full-year dividend of THB 1.00 per share.
"This has been a transformational journey and the Company has put in place the building blocks to ensure sustainable and profitable growth that we are uniquely positioned to capture. In 2017 we had our maiden listing in the Dow Jones Sustainability Index as the 5th most global chemical company. We have raised the bar and the challenge for us now is to continue to do so going forward. This is a very exhilarating time for us, and we could not be more excited about our future and the journey ahead." Mr. Lohia concluded.
The Company will hold its Capital Markets Day on 22 February to discuss the details.
About Indorama Ventures
Indorama Ventures Public Company Limited, a DJSI member, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world's leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company's portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. Indorama Ventures products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of US$ 8.4 billion in 2017.