Indorama Ventures’ net profit for the first quarter 2017 has risen eight per cent compared to the same period last year. On a year-on-year basis, production was up by 24 per cent and sales revenue was higher by 25 per cent. Core EBITDA for the company grew by 60 per cent.
This change in the quality of earnings is a reflection of the strategic fit of the company’s acquisitions of selected portfolios. The quarterly performance benefitted from expanded margins from successful integration of the high value added and other assets acquired in 2016.
Diversification into high value added assets, which now accounts for 50 per cent of overall core EBITDA, has enabled the company to deliver robust earnings on a sustained basis. The high value added business is further segmented in three distinct and high-growth industry verticals, namely automotive, hygiene and industrials.
Indorama Ventures is a leading chemical producer and had a strong start to 2017 performing very well on all of its key performance indicators. It continues to outperform and deliver industry-leading performance despite continuing industry over-capacity. Robust earnings and significant EBITDA growth in the quarter and last 12 months is a reflection of the successful deployment of its focused strategies of earning diversification, growth in key geographies and value-enhancing integration.
