Indorama Ventures reported Adjusted EBITDA1 of $276 million in 1Q25, a 23% decline quarter-on-quarter (QoQ) and 30% year-on-year (YoY). This is adjusted for a $12 million impact of a winter freeze in the U.S. The result was heavily affected by planned turnarounds in Olefins at the Lake Charles and Clear Lake plants in the U.S, 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 our local-for-local business model. Consequently, the Combined PET (CPET) segment posted a 43% QoQ and 50% YoY drop in Adjusted EBITDA to $126 million.
The overall Group result was supported by resilient performances from the company’s Indovinya and Fibers businesses. Indovinya segment delivered $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 $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 $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 $6 million QoQ and $28 million YoY, mostly from asset optimizations and other management initiatives. Operating cash flow surged to $416 million, allowing the company to reduce net debt by $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.
