Bangkok-based Indorama Ventures posted a record FY2021 performance as the economic recovery drove demand across the company’s global footprint, the company reported today.I
IVL, a leading producer of polyethylene terephthalate, achieved a core EBITDA of US$1,743 million, up 55% year on year, on production volumes of 14.72 MMT (up 7%year on year). Consolidated revenue increased 38% to US$14,629 million, rising inflation, energy price hikes and supply chain shocks notwithstanding - proving ‘the resilience of our global footprint and our integrated portfolio across the polyester value chain’, said Aloke Lohia, CEO of Indorama Ventures Group.
Macroeconomic tailwinds, including government stimulus packages, supported IVL’s performance across all three businesses. In premium western markets, higher freight rates improved the company’s local import parity pricing advantage. In the fourth quarter, the introduction of China’s dual control policy widened polyester margins.
IVL’s largest combined PET segment posted a 39% increase in core EBITDA to US$1,103 million, thanks to strong demand and low inventories. Looking ahead, demand for PET is set to remain strong going forward and with low pipeline inventories, 2022 is expected to be an exceptionally positive year for the segment.
On its annual Capital Markets Day earlier this month, the company also announced its ‘Vision 2030’ ambition to grow organically with sustainability as its priority. Under Vision 2030, IVL plans to invest in technology to capture carbon from its operations, increase renewable energy consumption, and phase out coal. It will invest more in PET recycling and introduce bio-based feedstock in about a third of its polyester-based value chain.
“Having reset our business for the ‘new normal’ era, it’s time to also reset our longer-term ambition and become a global industry leader in sustainability. More than 80% of our feedstock is polyester related, which is possible to be bio-renewable or circular,” said Lohia.
Under our Vision 2030, IVL is ready to take the next step in our journey as an industry sustainability leader.”