Indorama Ventures Q1 results records impressive growth

Indorama Ventures, a sustainable chemical producer, reported improved Q1 results with demand recovery and cost-cutting measures. Indorama's Q1 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 32 per cent quarter-to-quarter (QoQ)to $366 million. Sales volume rose 3 per cent QoQ as customer destocking eased. Lower European utilities costs and favorable US Shale gas economics boosted profitability.

The company expects gradual volume recovery in 2024. However, excess capacity, inflation, and high-interest rates remain challenges. Indorama is executing its IVL 2.0 strategy to optimize assets, reduce debt, and generate free cash flow. 70 per cent of the company's revenue now uses SAPS/4HANA for improved operations.

Indorama is optimizing seven production sites and refinanced $1.1 billion of debt to improve liquidity. The company is also preparing its packaging and surfactants businesses for potential IPOs.

Indorama's CPET segment's adjusted EBITDA rose 34 per cent QoQ to $249 million due to supply chain disruptions and lower energy costs.  The Indovinya segment's adjusted EBITDA was $70 million, impacted by a winter freeze in the US The Fibers segment's adjusted EBITDA surged 73 per cent QoQ to $39 million as destocking eased.