Q2 2024 Indorama Ventures PCL Earnings Call Transcript
Key Points
- Indorama Ventures PCL (FRA:I93A) achieved an adjusted EBITDA of $370 million in Q2 2024, with a 1% increase in volume quarter-on-quarter.
- The company reported strong operating cash flow of $494 million in Q2 2024, with a cash conversion of 134%.
- Indovinya's performance improved significantly, with a 40% quarter-on-quarter and 85% year-on-year increase in adjusted EBITDA.
- The company is making significant progress in asset optimization, expected to result in $170 million per annum in fixed cost savings by 2025.
- Indorama Ventures PCL is strategically positioned to benefit from high freight rates, which are expected to positively impact pricing and contract negotiations.
- The economic environment in China remains challenging, impacting the company's operations and market conditions.
- Supply chain disruptions have intensified, leading to increased logistics costs and extended delivery times.
- The company experienced a 50-day unplanned outage at the IVOL gas cracker, resulting in an EBITDA loss of approximately $17 million to $18 million in Q2 2024.
- Despite strong operating cash flow, net debt only decreased by $32 million due to deferred payments and dividend payouts.
- The Integrated PET segment faced depressed benchmark spreads, impacting profitability and resulting in a 6% quarter-on-quarter decline in adjusted EBITDA.
Welcome, everyone, and thank you for taking time to join us for Indorama Ventures second quarter results briefing. My name is Vikas Jalan. I'm Vice President, Investor Relations and Planning at IVL. Joining me today we have Mr. D.K. Agarwal, Deputy Group CEO and Group CFO; Muthukumar and Kumar Ladha, both are Co-Presidents for CPET business; Alaistair Mark Port, Executive President for Indovinya; and Diego Boeri, Executive President for Fibers.
A quick disclaimer that this meeting is being recorded and a replay of this session will be available on our website after the meeting. We have made a few assumptions and estimates on future trends for industry and business, which are based on our analysis of information at this point in time. So with that, I now invite Mr. Agarwal. First to see our business and financial highlights for second quarter '24. Over to you, Mr. Agarwal.
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