Indorama Ventures Public Company Limited (IVL), a leading global sustainable chemical producer, showcased a robust quarterly performance with a 32 per cent increase in Adjusted EBITDA1 (earnings before interest, taxes, depreciation, and amortization) to $366 million in 1Q24, signaling a positive shift amidst the prolonged destocking trend. Despite a 2 per cent YoY decline, the company's strategic advancements under its IVL 2.0 evolved strategy demonstrated resilience in navigating challenging market dynamics.
The quarter witnessed a 3 per cent QoQ growth in sales volume, indicating a gradual recovery across all sectors as customer destocking abated, although a US winter freeze posed a temporary setback. Lower utilities costs in Europe, supply chain optimizations, and favorable shale gas economics in the U.S. bolstered profitability.
While the recovery momentum is expected to persist through 2024, challenges loom due to industry-wide capacity surpluses, inflation, and high interest rates, particularly impacting the polyester value chain. However, IVL remains optimistic, with its HVA segment poised for a healthy 2024 post-destocking.
Under its IVL 2.0 plan, the company focuses on asset optimization, debt reduction, and cash flow generation to enhance shareholder value. Leveraging SAPS/4HANA ERP and AI tools, IVL aims to drive productivity and cost efficiencies while modernizing operations.
In line with its strategic objectives, IVL is optimizing sites and refinancing debt, ensuring ample liquidity. Additionally, preparations for IPOs of its packaging and surfactants businesses signify efforts to unlock further value.
Segment performances reflected the company's resilience, with CPET and Fibers segments posting notable gains amidst supply chain disruptions and demand recoveries.
Aloke Lohia, Group CEO of Indorama Ventures, expressed confidence in the company's trajectory, emphasizing a commitment to cost management and competitiveness as they navigate evolving market conditions.
