FSSIA Maintains Positive View on IVL, Seeing Less Than 1% Impact from Russia’s Supply Cut

The share price of Indorama Venture Public Company Limited (SET: IVL) fell 5% in the morning session on Wednesday to close at THB42.75 per share as investors are showing concerns over the potential negative impact of the gas supply cuts to Poland and Bulgaria by Russia starting today.


Mr. Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), maintained positive view on IVL, saying that the firm believed the impact is limited at less than 1%, if not no impact, from the gas supply cuts to Poland and Bulgaria, given;

1) IVL has only 15% EBITDA and 1.5% EBITDA generated from Europe and Poland and none from bulgaria after the acquisition of Oxiteno in April 2022. 

2) Poland still has gas supply, according to Poland’s state gas company PGNiG even Russia cuts its gas sent to Poland via the Yamal pipeline which will further transfer the gas through Belarus to the European market.  

3) FSSIA believed the market over penalised IVL’s share price and saw this as a strong buy opportunity ahead of its coming record high 1Q22 and 2022.

FSSIA maintained “BUY” rating on IVL with a target price at THB70 per share.