11 November 2013 13:20 [Source: ICIS news]
LONDON (ICIS)--Indorama Ventures’ (IVL) net profit for the third quarter of 2013 fell by 24% year on year to $35m (€26m) despite higher sales, partly because of regional oversupply in Europe, the Thailand-based polyester producer said on Monday.
Third-quarter net profits however were up steeply compared with $7m reported in the second quarter of 2013, the company added.
Revenue for the period climbed 11% year on year to $1.9bn from $1.7bn in the third quarter of 2012, while the company experienced its highest earnings before interest, taxes, depreciation and amortisation (EBITDA) of the past eight quarters, up 23% over the second quarter to $131m.
Year on year, EBITDA in the third quarter of 2013 was up 1.6%.
“As a global company with a strong portfolio of assets, Indorama Ventures’ strategy has been to diversify risk geographically and therefore regional results provide an important overview of how the moving parts of the business are performing,” said Aloke Lohia, group CEO of IVL.
“Our Asian business, which has seen the impact of tremendous oversupply of PTA [purified terephthalic acid] in the region for a few years now reported an EBITDA of $40m in 3Q13 against $28m in the previous quarter once we strip out income from insurance claims, indicating some improvement.
“Asian PTA spreads were still less than half of their former levels, which we believe are not sustainable for the majority of players and will have to recover gradually for the industry to strike a balance at which it can sustain itself,” Lohia added.
“Our European business was steady but soft, with EBITDA of $16m against $17m in 2Q13, due to regional oversupply, Asian imports and a seasonal dip at the end of summer. However, the North American performance has been consistent with EBITDA now at $76m and the full operation of our oxide and glycols plant is likely to gain from better margins in an undersupplied industry,” he said.
Looking ahead, Lohia said: “Indorama Ventures is now actively pursuing growth opportunities that have a strategic fit with our existing operations geographically or in terms of product diversification and are value accretive.”
($1 = €0.75)
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