Indorama Ventures Limited (IVL) reported a net loss despite rise in volume growth in the fiscal year 2019. The sales volume grew by 18%, driven reportedly by inorganic expansion.
Industry-wide spreads declined to historical lows in 2019, leading to 20% reduction in IVL’s core EBITDA, as company stated. Operating cash flow increased 33% to $1.3 billion.
Aloke Lohia, group CEO of Indorama Ventures said, “IVL now has three strong growth engines to generate continued returns for its stakeholders. The first is the combined PET segment, which includes its key feedstocks and recycling business; the integrated oxides and derivatives segment, which includes the recent acquisition of the Spindletop assets; the completed IVOL gas cracker in Louisiana; and lastly the fibres segment, which serves mobility, hygiene and lifestyle verticals.”
“Our global reach, with around 80 per cent of capital invested in Europe and Americas, makes our business model resilient to events happening in any particular country or region. On the other hand, our end-product strategy of serving the packaging, hygiene and safety needs of society, leads to our growth in excess of GDP growth,” Lohia added.
IVL has undertaken several transformative initiatives that were announced on February 4, 2020 and are expected to generate benefits starting in 2020 and targeted to lead to $350 million in run rate cost savings by 2023. “Going forward, we will reinforce our strengths via 5 strategic priorities: cost transformation, asset full potential, adjacency growth, recycling leadership and leadership development,” Lohia said.