Profits soar at top petrochem companies
THAILAND’S two major petrochemical companies have reported a surge in combined net profit for last year of 54.2 per cent from the prior year to Bt41.79 billion.
Indorama Ventures (IVL) posted net profit of Bt16.19 billion, a jump of 145 per cent year on year, while PTT Global Chemical (PTTGC) booked Bt25.6 billion, up 24.8 per cent.
IVL’s core businesses comprise polyethylene terephthalate (PET), fibre and feedstock.
Dilip Kumar Agarwal, chief executive officer for the PET and feedstock businesses, said the petrochemical industry would enjoy growth over the next five years as demand |was expected to exceed the supply of new production. The company has forecast that demand will reach 15 million tonnes against supply of 6 million tonnes.
He said that in the past |six years the industry had suffered from a supply glut. |IVL will continue to grow next year, Agarwal said, with solid contributions from existing projects.
He said that the company had no plans to take over any rivals.
The company expects this year’s production will expand by 9 per cent from 8.7 million tonnes in 2016, while total revenue is forecast to grow by 9-10 per cent.
According to an IVL filing to the Stock Exchange of Thailand last week, the company’s dual-feed, gas-based ethylene cracker purchased in the US state of Louisiana is undergoing renovation and is on target for completion by the end of 2017. That means 2018 will bring the first full year of revenue from the facility.
In January, the company announced the expansion of its high-value-added performance-fibre tyre-cord facility in China, expected to start up in the first half of next year, as well as the expansion of its fibre capacity in Indonesia, expected to start up in the first quarter of 2019.
