Indorama Ventures Public Company (IVL) reported a strong 1Q22 result, building on its record FY 2021 performance as the pandemic continued to retreat, driving demand across the company’s global integrated portfolio.

Indorama Ventures reported consolidated revenue of $4,444M, an increase of 12% quarter over quarter and 37% year over year. IVL achieved 1Q22 core EBITDA of US$650 million, up 41% quarter over quarter and 77% year over year, and a 4% increase in production volumes to 3.80 MMT. All three of IVL’s business segments grew as the company’s leading global position benefited overall in an environment of higher crude oil prices, increased ocean freight rates and a strengthening US dollar, led by resurging consumer demand and global mobility.

IVL’s Integrated Oxides and Derivatives (IOD) business benefits from a high crude oil price environment, as its shale gas advantage supports MTBE and MEG margins. As ocean freight rates increase, IVL’s PET and Fibers segments gain due to increased import parity pricing in Western markets, where about two-thirds of its portfolio is situated.

The re-opening of economies bodes well for demand across IVL’s portfolio. However, China’s ongoing pandemic lockdowns impacted downstream polyester demand resulting in weakened MEG spreads.

“Our integrated product portfolio continues to play a crucial role in consumers’ daily lives, serving end applications focused on elevating safety and well-being,” said D K Agarwal, CEO of Indorama Ventures. “This is the cornerstone of IVL’s resiliency and has allowed the company to successfully weather volatility and uncertainty. At the same time, our strong focus on transforming our processes is continuing to yield efficiency gains and drive increased productivity.”