Indorama Ventures Public Company (IVL), a global sustainable chemical producer, posted a softer performance in the first quarter of 2025 as persistent economic headwinds continue to weigh on commodities markets, while scheduled maintenance and adverse weather impacted production at US olefin sites in its key CPET segment. Indovinya, Fibers and Indovida (newly formed packaging business), being niche and specialities oriented, performed to satisfaction, the company said.
Indorama Ventures reported Adjusted EBITDA of US$ 276 million in Q1, 2025, a 23% decline quarter-on-quarter (QoQ) and 30% year-on-year (YoY). This is adjusted for a US$ 12 million impact of a winter freeze in the US. The result was heavily affected by planned turnarounds in olefins at the Lake Charles and Clear Lake plants in the US, leading to a 5% QoQ and 6% YoY reduction in production volume. Broader macroeconomic themes such as higher interest rates, elevated energy costs, and geopolitical conflicts continue to weigh on the industry, while substantially lower ocean freight rates during the quarter reduced import parity pricing, a bedrock of its local-for-local business model. Consequently, the combined PET (CPET) segment posted a 43% QoQ and 50% YoY drop in Adjusted EBITDA to US$ 126 million.
The overall group result was supported by resilient performances from the company’s Indovinya and Fibers businesses. The Indovinya segment delivered US$89 million in adjusted EBITDA, a 10% gain QoQ and 18% YoY, supported by fixed-cost savings. Fibers segment saw robust growth, with Adjusted EBITDA climbing 43% QoQ and 22% YoY to US$47 million, supported by higher volumes and margins and ongoing management actions to reduce costs and reshape the business. Indovida, now carved out from CPET as an independent packaging segment, reported stable Adjusted EBITDA of US$ 21 million.
Even as the chemical industry continues to be beset by one of the worst downturns in recent history, Indorama Ventures is benefiting from the strident ‘self-help’ actions under the company’s transformational IVL 2.0 program to optimize its business and leverage its scale and leadership to take advantage of the fundamental long-term changes in the industry. These helped reduce fixed costs by US$ 6 million QoQ and US$ 28 million YoY, mostly from asset optimizations and other management initiatives.
Operating cash flow surged to US$ 416 million, allowing the company to reduce net debt by US$ 100 million from December 2024 as it reinforces balance sheet discipline. Indorama Ventures’ digitalization program continues apace, with some 95% of data now unified across platforms and regions, supporting new AI and digital tools that promote smarter decision-making in supply chain, procurement, and working capital management.
As outlined at its annual Capital Markets Day in March, Indorama Ventures is optimizing its business to shape a renewed long-term growth path in a fundamentally altered industry landscape. The strategy includes building strategic partnerships that leverage mutual leadership positions to consolidate mature markets or build new capacity in attractive growth markets in Africa and India, while maintaining financial discipline through deleveraging and focused capital allocation. The company expects to complete a 24.9% equity stake in EPL in 2Q25. Indorama Ventures’ agility as a local manufacturer in key markets, including the U.S, limits its cross-border exposure and helps provide a buffer against new tariffs.
“We continue to focus on self-help actions that are building resilience and optimizing our industry-leading footprint in all our markets,” said Aloke Lohia, Group CEO of Indorama Ventures. “I am optimistic that 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.”
