|
MOSCOW (MRC) -- Indorama Ventures
Public Company Limited (IVL), a global chemical producer, has announced its
third quarter 2020 financial results, said the company.
Reported net
profit is THB 380 million in 3Q20 and THB 1,104 million for 9M20. Our
performance this year provided us significant insights into the growth of the
future market, while the company remains on a path towards enhanced incremental
performance progress, from 4% ROCE towards our target ROCE of 15% by
2023.
In 3Q20 we delivered record sales volume of 3.6 million tonnes,
registering growth of 18% year-on-year (YoY). Sales volume grew to 3.2 million
tonnes, or 4% YoY on a comparable basis. This continuous volume growth is a
clear indication of the resilient nature of the company’s products and the
global access we have to our customers.
IVL achieved an operating cash flow
of USD 354 million in 3Q2020 while operating cash flow for 9M20 was USD994
million, thus providing us ample liquidity of USD 2.5 billion in cash and cash
equivalents as well as unused credit lines.
Project Olympus (a business
transformation and cost excellence project) delivered a savings of USD 21
million in 3Q20 and USD 64 million in 9M20. Our full year budget of USD 76
million in savings is expected to exceed targets by over 15% in 2020 with
relentless focus on multiple initiatives.
IVL has embarked in 2020 on a
transformation journey that will enhance its business excellence and aims to
deliver US$ 582 million of additional, sustainable, EBITDA by 2023. This target
has been expanded from the US$ 352 million announced at our Capital Markets Day
at the start of 2020 after a rigorous analysis process and the support of
relevant domain experts to validate our operating teams’ initiatives in all of
our three major business segments globally.
We are making progress
towards our ESG targets and our pledge to recycle 750,000 tonnes of
post-consumer PET, with a commitment of USD 1.5 billion towards our ESG and
recycling infrastructure globally by 2025.
We have strengthened our
leadership and recruited both digital and Lean Six Sigma function leaders to
support technological adaption across IVL.
IVL is well on its way to
implement S4 Hana (ERP) across our global operations and introduced a Global
Business Service (GBS) office which will hallmark the delivery of our
transformation journey.
As MRC informed earlier,
Indorama Ventures Sines, a subsidiary of the world leader in the production of
polyethylene terephthalate (PET) - Indorama Ventures Company Ltd (IVL), plans to
halt production at the refined terephthalic acid (TPA) plant in Sines (Sines,
Portugal) in mid-November to conduct planned preventive measures. Repair work at
this enterprise with a capacity of 700,000 tonnes/year of TPA per year will
continue for one month. Thus, this plant should return to work in mid-December
this year.
As per ICIS-MRC Price
Report, buying activity has improved in the Russian market of PET chips this
week. Most producers reported a limited volume of free PET in the spot market.
Converters' opinions regarding November demand in the preforms market differed.
Some of them reported good sales, while others reported that demand was
low and they have to sell preforms at a price close to their
cost.
Indorama Ventures Public Company Limited, listed in Thailand
(Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals
producers, with a global manufacturing footprint across Africa, Asia Pacific,
Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins,
Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve
major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire
and safety segments. Indorama Ventures has approx. 24,000 employees worldwide
and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in
the Dow Jones Emerging Markets and World Sustainability Indices (DJSI). |
