Indorama Ventures 1Q results surge 133% year-on-year

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The petrochemical giant, Indorama Ventures Plc (IVL), booked its first-quarter earnings of 14 billion baht, an increase of 134 per cent from a year earlier, the company announced on Thursday.

Aloke Lohia, the group chief executive, said IVL’s results in the first quarter were driven by a rise in crude oil prices, higher marine freight rates, a strengthening US dollar, and post-Covid recovery in the global economy.

IVL both manufactures and distributes polyethylene terephthalate (PET), a material used in plastic bottles. Integrated oxides and derivatives (IOD) and fibers are also the company’s key business segments.

Following the impact from the Russia-Ukraine crisis, “the IOD business benefits from shale gas advantage in a high crude environment,” IVL said. “The PET and fibers businesses gain import parity advantage on absolute price in Western markets.” 

Excluding inventory gains, IVL’s core profit in the first quarter stood at 10.6 billion baht.

However, as China imposed lockdown measures to contain its worst Covid-19 outbreak since 2020, IVL’s product sales have suffered due to a drop in economic activities. The company said it expects to see improvement in the second quarter. 

With rising energy and utility costs, IVL’s PET and fibers operations were also affected by more costs in the first quarter. 

“The Russia-Ukraine conflict exacerbated the inflation in energy prices globally,” IVL noted. “We believe [it] will have its peak impact in 2Q22.”

As of the afternoon session, IVL shares rose by 1.13 per cent to 44.75 baht, recovering from a 2-per-cent fall in the morning session. The stock closed on Wednesday by rising 1.14 per cent.

“Our product portfolio continues to play a crucial role in the consumer’s daily life, serving end applications focused on elevating safety and well-being,” Lohia said. 


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