Thailand's IVL Q1 net profit down 85% to $54m as expenses surge

11 May 2012 10:45  [Source: ICIS news]

SINGAPORE (ICIS)--Indorama Ventures Ltd (IVL) posted an 84.9% year-on-year decline in first-quarter net profit to baht (Bt) 1.69bn ($54.3m) as expenses surged, the Thailand-listed polyester maker said on Friday.

The company’s overall sales fell by 29.6% year on year to Bt52.6bn in the first quarter, while earnings before interest, tax, depreciation and amortisation (EBITDA) slumped by 54% year on year to Bt3.04bn, the company said in a statement.

The company’s total expenses rose by 43.9% year on year to Bt51.8bn in the first quarter, with finance costs up 52.2% to Bt663.8m it said.

Plant shutdowns at its Lopburi site in Thailand also took a toll on the firm’s earnings in the first quarter, the company said.

IVL shut operations at its wool yarns and polyethylene terephthalate (PET) polymers facilities in Lopburi in September last year because of flooding.

Full recovery at its Lopburi site is only expected in 2013, it said.

“We expect in 2012 to have growth in revenues and earnings, coming from start-up of [the] Lopburi site after flooding and acquired site of Old World, which will be fully integrated in subsequent quarters,” the company said.

“The PET acquisition in Indonesia is also due to close in the second quarter of 2012 and is expected to be accretive to earnings in its first year itself,” it added.

($1 = Bt31.1)

By: Nurluqman Suratman

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