IVL Reports a Fall of 73% in 2Q19 Profit as Investment Costs and Expenses Rise
IVL Reports a Fall of 73% in 2Q19 Profit as Investment Costs and Expenses Rise
IVL Reports a Fall of 73% in 2Q19 Profit as Investment Costs and Expenses Rise
8 ส.ค. 2562

Indorama Ventures Public Company Limited (IVL) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

IVl has recorded its 2Q2019 net profit of THB 2,267 million decreased 73% YoY and 35% QoQ.  IVL’s performance for 1H19 and ongoing progress give IVL the confidence that the major segments of Integrated PET and Fibers are unique and have limited impact from the heightening trade wars. The Integrated Oxides &amp; Derivatives segment was negatively impacted by the extended shutdown into 2Q19 following from the 1Q19 catalyst turnaround at IVL’s EO-EG facility in the USA and due to the plummeting MEG margins in Asia although cushioned by the lower cost USGC economics.
On the other hand, IVL’s Purified EO (PEO) business continues to outperform helping this segment delivers healthy an overall EBITDA of $26 million during its shortened quarter. 
IVL’s Specialty Chemical segment had its weakest quarterly performance due to a surplus capacity of IPA post the spike profitability in 2017. This segment was further impacted by the unplanned shutdown of IVL’s Spartanburg site which also impacted IVL’s Specialty Fibers operations in the USA. This facility will gradually recover in 3Q19.

The overall core EBITDA in 2Q19 and LTM 2Q19 was $361 million and $1,392 million respectively, a decrease of 7% YoY and an increase of 10% LTM 2Q19. Three of IVL’s five segments, namely Integrated PET, Fibers and Packaging, which constitute around 89% of capacity, contributed to 94% of the core EBITDA. The remaining two segments, Integrated Oxides &amp; Derivatives, and Specialty Chemicals are expected to resume their earnings from unplanned shutdowns, except IPA which we believe will recover over the next 12-18 months. 