Indorama Ventures Public Company Limited (SET: IVL) has announced its 2021 consolidated financial statement through the Stock Exchange of Thailand as follows;
| Yearly | 2021 | 2020 |
| Net Profit (Loss) Million Baht |
26,288.03 | 2,414.28 |
| Earning Per Share (Baht) | 4.55 | 0.30 |
| % Change | 988.86 | |
IVL reported a net profit of 26,288 million baht in 2021, increased 989% from a net profit of 2,414 million baht in 2020.
IVL delivered record results in 2021, with full year Core EBITDA of US$ 1,743M as well as record production volumes of 14.72 MMT. Growth was seen across all three business segments of Combined PET (CPET), Fibers, and Integrated Oxides and Derivatives (IOD) as well as across the three major regions of North America, Europe and Asia.
IVL stated that this year further highlighted the competitive advantage of IVL’s regionally integrated model, serving demand inelastic end markets that provide safety and well-being for the consumer. The resiliency of its platform today sets a strong foundation for further growth in, around, and beyond IVL’s current businesses.
Combined PET business continued its track record of delivering consistent growth and strong returns. 2021 was an exceptional year for CPET, delivering Core EBITDA of US$ 1,103M, a growth of 39% over 2020, and Reported EBITDA of US$ 1,353M. This was largely driven by supportive macro factors bringing up volumes by approximately 6%, as well as improved spreads due to the high freight regime increasing import parity. 4Q21 specifically experienced strong PET spreads, contrary to seasonal weakness, due to China’s introduction of dual policy control.
Demand for PET is set to remain strong going forward and with low pipeline inventories, 2022 is expected be an exceptionally positive year for the segment. With the revision of 2022 contracts, IVL will be in a position to gain full benefit.
Integrated Oxides and Derivatives (IOD)’s strong performance in 2021 resulted in 228% increase YoY in Core EBITDA to US$ 377M, driven by Upstream and Downstream portfolios. MEG and MTBE performance in the Intermediates portfolio continue to improve, but remained weak.
IVL stated that the acquisition of Oxiteno is expected to close in Q1 2022 and will bring additional upside to this portfolio. Oxiteno brings innovative and customer-centric products and an experienced management team in an attractive geography.
The Fibers segment delivered Core EBITDA of US$ 268M in 2021, an increase of 37% from 2020, and Reported EBITDA of US$ 297M. Fibers benefited from realization of margin gains from sales price increase due to tight market and favorable product portfolio mix, with setbacks coming from energy and commodity price increases. Overall volumes increased by 11% as compared to 2020, largely driven by improved performance in Lifestyle and Mobility verticals.
In addition, the Board of Directors approved a dividend payment of THB 0.25 per share to be paid on 20 May 2022. The ex-dividend date is 6 May 2022.
