Bangkok--11 Nov--Indorama
Indorama Ventures Public Company Limited, the world’s leading vertically integrated Polyester Value Chain producer, has recorded impressive growth of its net profit in the first nine months of 2010, achieving Baht 6,552 million, or a 90% rise compared to the first nine months in 2009. With revenue up 21% to Baht 71,739 million, the Earnings Before Interest, Tax, Depreciation and Amortization, or EBITDA, in the first nine months of the year improved 13% to Baht 9,543 million. In the third quarter alone, sales rose 16% over the same period in 2009, rising to Baht 20,422 million, while earnings for the third quarter 2010 of Baht 3,090 million were up 412% over earnings of Baht 573 million in Q3 2009 and 40% higher than the net profit of the second quarter 2010.
Sales revenue of PET increased by 32 percent over 3Q 2009, due to higher sales volume and higher selling prices. The higher sales volume came as the Company’s US greenfield project, AlphaPet, began operating both lines in the quarter. However, on a global basis, the Company also saw improved demand for PET. The PET business grew its operating EBITDA by 17% in the first nine months of 2010 over the same period in the previous year.
IVL’s Polyester Fibers and Wool Yarns business saw its revenues up 24% and operating EBITDA up 54% in the first nine months on 2010 compared with the same period last year due to an improvement in margins as the Company changed the product-mix to include higher value-added products while enjoying lower conversion cost and strong demand. Cotton prices have spiked to new highs resulting in demand for substitution benefiting Polyester.
PTA saw margins supported by strong demand from polyesters and PTA plants ramped up to 101% utilization. Revenues and operating EBITDA remained flat over the first nine months but on a quarterly basis Q3 2010 was up slightly over Q2 2010. In October, 2010, IVL increased its share ownership of TPT Petrochemicals PCL (TPT) from 54.7% to 99.9% for approximately Baht 2,896 million (US$ 95 million), an investment expected to be accretive to IVL’s bottom line.
Mr. Aloke Lohia, Group CEO of Indorama Ventures PCL said, “Our past investments are now proving themselves to be value accretive and I am pleased to see our annualized ROE for the first nine months at 39%. As we move forward with our plans to expand our business and thus our economies of scale, we are also paying attention to environmental issues with plans to increase recycling as a part of our business base. We are currently implementing a 36,000 tpa PET Recycling, or “Flake to Resin,” project at our AlphaPet, USA, facility. The project is in line with demand from branded beverage companies in the fast moving consumer goods sector and is expected to be completed and commence operations within the fourth quarter of 2011.”