Indorama Ventures Plc (IVL), the world's largest polyethylene terephthalate (PET) producer, achieved 9% year-on-year revenue growth to US$1.9 billion in the second quarter thanks to the rebound of the petrochemical industry.
Net profit, meanwhile, dropped to $7 million or 219 million baht from 470 million the year before due to inventory loss of $38 million on lower feedstock prices as well as a planned turnaround at its glycol plant in the US.
Core earnings before interest, taxes, depreciation and amortisation hit $144 million, up from $93 million in the first quarter, as margins in Asia experienced a remarkable rebound over the last year.
"We have been seeing signs that the trough period of the past two years is coming to an end, and this is extremely encouraging," said chief executive Aloke Lohia.
He said price volatility continues to be high, as feedstock - paraxylene and monoethylene glycol - fell by 12% in the second quarter from the first three months, resulting in an inventory loss of $38 million.
On the positive side, purified terephthalic acid (PTA) business recovered moderately, while PET margins improved significantly.
IVL's North American operations outperformed other regions despite a loss of contributions from the two-month turnaround of its glycol operation - a mandatory event that takes place every two or three years.
Continued growth is expected in the second half as operational excellence projects kick in and a new polyester fibre facility in Indonesia starts operations in the fourth quarter to lower IVL's costs.
Expansion of PTA capacity at its Rotterdam plant is under way together with debottlenecking of its PET plant in Poland to improve IVL's cost competitiveness in Europe.
The IVL board approved an interim dividend payment to shareholders of 14 satang per share.
Shares of IVL closed yesterday on the Stock Exchange of Thailand at 18.10 baht, up 10 satang, in trade worth 65.7 million baht.