Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported a mixed performance for the first quarter of 2025, reflecting continued pressure on the global chemical sector. Weighed down by economic headwinds, scheduled plant maintenance and severe winter weather in the United States, the group’s Combined PET (CPET) segment underperformed, while niche and speciality segments delivered stronger results.

The company posted an Adjusted EBITDA of $276 million, a 23% decline quarter-on-quarter and 30% year-on-year, after factoring in a $12 million weather-related impact. Production volumes fell by 5% QoQ and 6% YoY due to turnarounds at the Lake Charles and Clear Lake olefin facilities in the U.S., further compounded by subdued global demand and reduced ocean freight rates that impacted local pricing dynamics. The CPET segment’s Adjusted EBITDA dropped sharply by 43% QoQ and 50% YoY to $126 million.

Despite this, the Group was buoyed by Indovinya and Fibers segments, which continued to show resilience. Indovinya posted an Adjusted EBITDA of $89 million, up 10% QoQ and 18% YoY, supported by cost efficiencies. The Fibers business grew 43% QoQ and 22% YoY to $47 million, driven by improved margins and volume, alongside ongoing business transformation efforts.

Indovida, a newly separated packaging segment carved out from CPET, reported a steady EBITDA of $21 million. Together, these results underscored the company’s strategic pivot towards higher-margin and speciality businesses.

The group is actively implementing its IVL 2.0 transformation programme, aimed at structural cost reduction and operational optimisation. Cost-saving initiatives contributed to a $6 million reduction in fixed costs QoQ and $28 million YoY. Operating cash flow surged to $416 million, enabling a $100 million reduction in net debt since December 2024. Digitalisation efforts have also progressed significantly, with 95% of company data now integrated across platforms to support AI and data-driven decision-making.

Looking ahead, Indorama Ventures is prioritising strategic partnerships and disciplined capital allocation to reshape its long-term growth trajectory. This includes plans to complete a 24.9% equity stake in EPL in Q2 2025 and to expand in growth markets such as Africa and India. The company continues to benefit from its local-for-local manufacturing approach, which helps mitigate exposure to tariffs and global logistics risks.

“We continue to focus on self-help actions that are building resilience and optimising our industry-leading footprint in all our markets,” said Group CEO Aloke Lohia. “These decisive measures are not only helping us to navigate through the current downcycle but are also positioning us to seize the long-term growth opportunities that change always brings.”

www.indoramaventures.com