BANGKOK – Building on its strongest-ever annual sales of $14.6 billion in 2021, Indorama Ventures reports a record first quarter 2022, with sales of $4.444 million up 37% on the first quarter of 2021, and 12% up on the last quarter 2021.
EBITDA for the first quarter 2022 was $650 million, up 77% on the first quarter of 2021 and 41% on the last financial quarter.
All three of IVL’s business segments grew as the company’s leading global position benefited in an environment of higher crude oil prices, increased ocean freight rates and a strengthening US dollar, led by resurging consumer demand and global mobility.
IVL’s Integrated Oxides and Derivatives (IOD) business is benefiting from a high crude oil price environment, as its shale gas advantage supports MTBE and MEG margins. As ocean freight rates increase, IVL’s PET and Fibers segments are also gaining due to increased import parity pricing in Western markets, where about two thirds of their portfolios are situated. Management’s agile response to hedging and levying surcharges has helped to partially recuperate the surge in energy and utility costs in Europe as a consequence of the Russia-Ukraine conflict.
The reopening of economies bodes well for demand across IVL’s businesses, but China’s ongoing pandemic lockdowns have impacted downstream polyester demand. IVL’s businesses trade in US dollars and a strengthening dollar has had positive impact, reducing conversion costs in emerging economies where IVL has a strong local presence.
“Our integrated product portfolio continues to play a crucial role in the daily lives of consumers, serving end applications focused on elevating safety and well-being,” said CEO D K Agarwal. “This is the cornerstone of our resiliency and has allowed the company to successfully weather volatility and uncertainty. At the same time, our strong focus on transforming our processes is continuing to yield efficiency gains and drive increased productivity.”
The Hygiene Division of IVL announced price increases of up to 15% on all of its fibres from December 1st, 2021, or as contracts allowed, including on polypropylene, polyester, recycled polyester, polylactic acid (PLA) and bicomponent fibres.
This division primarily serves the nonwovens markets for disposable absorbent hygiene products (AHPs) including baby and adult diapers, femcare articles and wipes. The division consists of the following companies with global operations: Auriga Polymers, Avgol, FiberVisions, Indorama Asia, Trevira and Wellman International.
