World's Leading PET Resin And MEG Manufacturer, Indorama Ventures, Reported Improved Earnings In Q1 Of 2023

Revised and Improved Quarterly Earnings Announced by Indorama Ventures

Indorama Ventures Public Company Limited (IVL), the top producer of sustainable chemicals, announced revised earnings for the quarter as headwinds of the last quarter's peaks persist in unwinding. Still, it stays below the usual levels.

The company persists in improving its competitiveness on a global scale as the complete benefit of China's reopening spurs volumes in the year and as fluctuating prices of energy and the consumer's destocking activities start normalizing.

The company's reported EBITDA was USD 301 million in 2023's first quarter. This is an increase and decline of 269% QoQ and 62% YoY respectively. The volumes for sale dipped 8% YoY amidst the heavy destocking movement, which affects the global chemical industry, even though there was an increase of 5% QoQ in volumes as the speed of destocking slowed from the Q422 peak.

The overall earnings for the company announced were lower in Q1 on a year-on-year basis as consumer destocking trends kept volumes for sales under consumer consumption levels.

The EBITDA announced was USD 142 million, a drop of 74% YoY as volumes for sales dipped by 9%. EBITDA for the fibre segment was USD 32 million, a 69% YoY drop as the three verticals announced plunging sales. Integrated Oxides and Derivatives (IOD) segment posted EBITDA of USD 128 million, a growth of 4.4% YoY as volumes advanced 4.4% YoY.

As per the article by Procurement Resource, IVL's Q1 23 reported earnings were driven by the reopening of China following the pandemic lockdowns and a ramp-up in economic activity, marginally improving the benchmark spreads, albeit under historic levels. Europe's warmer-than-expected winter led to reduced prices of energy and eased the previous year's cost pressures.