Thailand’s Indorama Ventures, a global sustainable chemical producer, had its early Friday share price rise by 5% after reporting better-than-expected first quarter earnings.
The share price of Indorama Ventures Plc. (SET: IVL) rose THB2.00/share, or 4.52% to THB46.25/share, with a trading value of THB1,011 million.
IVL achieved a net profit of THB14,070 million in 1Q22, increasing from a net profit of THB6,009 million in 1Q21, while core net profit was THB 10,578 million.
Meanwhile, 1Q22 core EBITDA was US$650 million, up 41% QoQ and 77% YoY, and a 4% increase in production volumes to 3.80 MMT. All three of IVL’s business segments grew as the company’s leading global position benefited overall in an environment of higher crude oil prices, increased ocean freight rates and a strengthening US dollar, led by resurging consumer demand and global mobility.
Capital Nomura Securities has a positive view on IVL as the company’s 1Q22 performance exceeded market expectations due to a higher-than-anticipated profit margin in the PET segment.
Following an impressive 1Q22 results, CNS has revised up its forecast for IVL’s full-2022 earnings by 62% to THB39,468 million (+60% YoY) on the back of a higher-than-expected PET profit margin, and the target price has been increased from THB56.5 to THB60.00 per share with a “BUY” rating.