Reported EBITDA at Indorama Ventures slips 68% in Q2
Reported EBITDA at Indorama Ventures slipped 68 percent year on year to US $321 million in the second quarter of 2023, but rose 7 percent over the earlier quarter.
The Thailand headquartered company recorded revenues of $4 billion in the reporting quarter, again down 27 percent from a year ago quarter, and also down one percent over the first quarter of 2023.
Operating cash flows at Indorama Ventures stood at $491 million in the quarter ending June 30, 2023 while reporting net operating debt to equity of 0.95x.
The fibres segment achieved Reported EBITDA of $20 million, a decrease of 37 percent over the previous quarter, impacted by lower margins in the lifestyle vertical and weak demand for hygiene products in Europe.
“Volumes are expected to improve as manufacturing in Europe is optimised and expansion projects come online in the US and India,” Indorama Ventures said.
“We are taking steps to conserve cash and safeguard our competitive advantages as the global industry is impacted by increased capacity and lower margins, with China boosting exports to offset muted domestic demand,” the company added.
Measures include redoubling efforts to reduce working capital and capex targeting $500 million of cash savings this year, optimising the company’s European manufacturing footprint, and continued focus on Project Olympus, digitalization, and organizational enhancement.
