Indorama reports record 2021 financial performance 

Indorama Ventures Public Co. Ltd. (IVL), Bangkok, Thailand, today reported a record 2021 performance as economic recovery drove demand across the company’s global footprint.   

“In 2021 we proved the resilience of our global footprint and our integrated portfolio across the polyester value chain,” says Aloke Lohia, CEO of Indorama Ventures Group. “The past two years were an unprecedented period of disruption in which our business model’s robustness and our teams’ agility were tested.  

In 2021, IVL reports core earnings before income, taxation, depreciation and amortization (EBITDA) of $1.7 million, up 55 percent year over year on production volumes. Consolidated revenue increased 38 percent year over year to $14.6 million. The company says its model benefited from rising inflation, energy price hikes and supply chain shocks.  

Macroeconomic tailwinds supported the company’s performance, including government stimulus packages, IVL says. In premium western markets, higher freight rates improved the company’s local import parity pricing advantage. In the fourth quarter, the introduction of China’s dual control policy widened polyester margins.  

IVL’s largest combined polyethylene terephthalate (PET) segment posted a 39 percent increase in core EBITDA to $1.1 million in the context of strong demand and low inventories. The resetting of PET contracts in 2022 is expected to capture higher freight rates and the consequent beneficial impact on import parity. The segment is expected to see improved margins in 2022, according to IVL.  

Integrated Oxides & Derivatives (IOD) recorded a core EBITDA of $377 million, up 228 percent from a year earlier. With higher oil prices expected to continue into 2022, the company says the segment will continue to benefit from shale gas economics, improving mono ethylene glycol spreads.  

The fibers segment reported a 37 percent increase in core EBITDA of $268 million as volumes rose 11 percent. The company says margins widened due to tighter markets and a favorable product mix, with setbacks coming from energy and commodity price increases, while the ongoing semiconductor shortage impacted the company’s mobility vertical.  

“The performance was a result of several macroeconomic factors, such as heightened crude oil prices, supply disruptions and resurgent consumer confidence as vaccinations were rolled out in the pandemic’s second full year,” says D.K. Agarwal, CEO and chief financial officer of Indorama. “These factors led to improved margins and benefited us as a preferred regional supplier that can react quickly to fulfill our customer needs.”  

The company recently announced its three-year business plan to leverage its global footprint, ongoing transformation initiatives and high levels of integration across the company’s three business segments to drive earnings growth, extract efficiencies and lift productivity.  

IVL says it will continue to invest in its platform, its people, and strengthen systems to unlock its full potential to contribute to EBITDA growth and deliver our aspirational more than 15 percent return on capital employed by 2024.   

Under its “Vision 2030” outline, IVL says it plans to invest in technology to capture carbon from its operations, increase renewable energy consumption and phase out coal. It will invest more in PET recycling and introduce bio-based feedstock in about a third of its polyester-based value chain. Additional measures to future-proof the company include developing leaders with a growth mindset and empowering them with the right tools to lead.