Dyes & Chemicals | News & Insights


Published: March 7, 2022

Indorama Ventures Limited (IVL) has delivered record results in 2021, with EBITDA of $1,743 million as well as production volumes of 14.72MMT. Growth was seen across three business segments of Combined PET  (CPET),  fibres,  and  Integrated  Oxides  and  Derivatives  (IOD)  as  well  as  across  the  three  major regions of North America, Europe and Asia.

This year has further highlighted the competitive advantage of IVL’s regionally integrated model, serving demand inelastic end markets that provide safety and well-being for the consumer. The resiliency of the platform has set a strong foundation for further growth in, around, and beyond current businesses.

“2021  was  once  again  consumed  by  the  COVID  pandemic,  with  multiple  new  waves  hitting  our economies  as  nations  raced to  vaccinate  their  populations.  Despite this, demand was robust with government stimulus boosting consumption, causing crude oil price to rise by over 50 per cent in 2021. At the same time, rising inflation became a growing concern, pushing fixed costs higher,” IVL said in a press release.

The year has been marked by some unexpected and unforeseen crises starting with the Polar Vortex in the  US  Gulf  Coast  leading  to  supply  disruptions  of  petrochemicals,  the  unprecedented  escalation  in container  tariffs  increasing  costs  and  causing  delays,  and  the  energy  surge  especially  in  Europe  and China further complicating supply chains and resulting in cost hikes that could impact profitability. IVL was able to leverage on its leadership position to levy surcharges in Q4 in order to recuperate some of the increased energy costs.

Despite the challenges, there were a number of tailwinds supporting IVL in 2021 and contributing to the record performance achieved. IVL’s presence in premium western markets led to margin improvement coming from higher import parity pricing as a result of high freight rates. The fourth quarter specifically benefited from the introduction of China’s dual control policy that caused production disruptions, resulting in higher polyester value chain margins.

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