IVL Gains 4% after Reporting a 50-Fold Growth in 2Q21 Earnings

Indorama Ventures Public Company Limited (IVL) has announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

IVL reported net profit of 8,340 million baht, a growth of 39% QoQ, 5,332% YoY as revenue from sale of goods increased 52% YoY to 111,301 million baht. 

IVL delivered standout results in 2Q21 and a record Core EBITDA of US$ 477M (IVOL $18M expenses moved to extraordinary), bolstered by its global franchise, scale and leadership across three business segments. IVL’s record quarterly performance includes solid operating earnings across regions. Americas and EMEA yielded a record, performing 59% higher Core EBITDA in 1H21 as compared to 1H20, while Asia grew by 15%. In 2020, IVL’s businesses passed the test of resiliency, and this first half of the year has highlighted the value creation coming from its platform.

Demand for the products remained robust across all segments and all regions. IVL achieved higher margins along its portfolio, leveraging on its integrated operating model and regional supply chain advantage offsetting headwinds in the ecosystem such as shortages of key raw materials and logistics constraints. In an environment of major disruption, IVL’s management has demonstrated agility in responsibly navigating the ecosystem and continuing to provide value to customers.

The remainder of 2021 is expected to parallel the first half on the back of continued strong demand in IVL’s products from opening up of travel with widespread vaccination and immunity. IVL anticipates significantly improved IOD volumes with Lake Charles (IVOL) under commissioning, margins enhancement due to strong shale gas economics and support for oxyfuel from increasing mobility. Integrated PET margins will likely adjust to increase in supplies as container movement eases towards year end. 

The semiconductor shortage is tempering some of IVL’s customer demand in the fibers segment and the steep cost increase of polypropylene is leading to lag in passthrough mechanisms for its hygiene vertical. 

Overall, IVL sees a strong 2H21 and 2022, anticipated to surpass our guidance given in the Capital Market Day presentation in January 2021.

As of 15:57 local time in Thailand, the share price of IVL rose ฿1.50/share or 3.82% to ฿40.75/share, with a trading value of 3,003 million baht.