Indorama Ventures Plc (IVL), a global sustainable chemical company, reported a record core earnings before interest, taxes, depreciation and amortisation (Ebitda) of US$758 million in the second quarter, up 17% quarter-on-quarter and 59% year-on-year.
Sales revenue also rose by about 11% quarter-on-quarter on a same-store basis, supporting a core Ebitda margin of 14%.
The combination of strong sales and improved margins helped offset higher energy costs in the US and Europe, while management leveraged the company's leading position in local and regional markets to ensure uninterrupted customer service levels as higher crude oil prices impacted raw materials costs.
The strong second-quarter performance extends the record profit achieved in 2021 as the company's differentiated product portfolio grows in line with long-term macro-consumer trends.
Most of IVL's products are used in daily household necessities and are resilient against short-term headwinds.
Chief executive Dilip Kumar Agarwal said IVL enjoys market leadership in each of its key business areas in industries that have stable long-term growth prospects.
"As we demonstrated through the peak pandemic period, our global platform's unique attributes of resilience and growth mean we can stay focused on our long-term plan while at the same time responding quickly to short-term market fluctuations such as the heightened energy costs and supply chain disruptions that have continued into 2022.
"This, coupled with our continual focus on cost management through transformation programmes such as Project Olympus allowed us to improve on our performance in the second quarter," he said.
Combined PET (CPET), the largest of IVL's three business segments, delivered a strong core Ebitda of $431 million, up 35% year-on-year and a 1% decrease quarter-on-quarter, due to high margins driven by seasonally strong demand, supply chain constraints and overall market tightness.
Sales revenue increased 13% quarter-on-quarter on a same-store basis.
In April, the firm acquired Ngoc Nghia Industry, a leading PET packaging company in Vietnam, expanding IVL's integrated offering to customers throughout Asia.
The Integrated Oxides and Derivatives segment achieved a core Ebitda of $250 million, up 98% quarter-on-quarter and 152% year-on-year.
