Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the fourth quarter 2024 was €53m. This compares to an EBITDA of €51m for the fourth quarter 2023 and €68m in the prior quarter.
In November 2024, INEOS Enterprises entered into an agreement for the sale of INEOS Composites to KPS Capital Partners, LP for an estimated consideration of €1.6bn at completion. The sale is expected to complete in the first quarter of 2025. INEOS Enterprises intends to use the proceeds from the sale to repay existing borrowings after completion.
Market conditions remained challenged with continued weak demand across many regions and markets. Overall, results in Q4 were in line with seasonal expectations and margins were upheld through competitive pricing, particularly in North America. In line with wider INEOS businesses, results were supported by continued liquidity and fixed cost management across the Enterprises Group.
Composites’ Q4 2024 EBITDA was €41m, compared to €38m in Q4 2023 and €43m in the prior quarter. In North America, strong margins and prudent cost management supported results. In line with prior years, volumes were affected by extended customer shutdowns over the Thanksgiving and Christmas periods. In Europe, severe floods in Spain caused disruption across supply chains which impacted volumes. However, the impact of these logistical challenges was partially offset by additional customer orders in UPR. The Rest of World regions’ robust performance continued in the quarter, with strong VER sales alongside continued demand for UPR in China and India.
Pigments’ reported Q4 2024 EBITDA of €24m, compared to €28m in Q4 2023 and €31m in the prior quarter. Challenging conditions in the US housing market continued to supress North American TiO2 demand. Volumes in the Pigments business were impacted by production challenges caused by a severe snowstorm at the site during the quarter. In the KOH business, an extended planned shutdown, also due to severe winter weather, restricted production of both Chlorine and HCl impacting volumes. Results in Tyssedal were supported by strong margins driven by reduced energy costs and the effect of fixed cost savings initiatives implemented at the site.
In Q4 2024, Solvents’ EBITDA was €(14)m, compared to €(10)m in Q4 2023 and €(2)m in the prior quarter. The result in Q4 was primarily driven by continued weak demand in the European BDO market and a planned shutdown in the BDO business. Results were also negatively impacted by increased energy costs and production challenges, affecting volumes, which was only partially offset by higher margin IPA sales.
Chemical Intermediates reported EBITDA of €2m in Q4 2024 compared to €(2)m in Q4 2023 and €(1)m in the prior quarter. Results were affected by production issues following plant shutdowns in the Joliet business. In the Compounds business volumes were challenged due to seasonal demand fluctuations. The Calabrian business had a record quarter driven by increased volumes across all products, largely due to increased output in the Canadian gold mines, strong margins as a result of competitive pricing and effective cost control.
Hygienics reported EBITDA of €0m in Q4 2024 compared to €(3)m in Q4 2023 and €(3)m in the prior quarter. The result in Q4 was driven by strong sales volumes and market demand following the recent launch of products in new major retailers across the UK.
In line with our conservative financial policy, we have maintained a prudent capital position with continued control over our operating cost base and capital spend. At the end of the year, we reported cash balances of €248m and net debt of €1,688m, resulting in pro forma net debt leverage of c.5.5x. Pro forma net debt leverage includes customary adjustments for expected synergies and fixed cost savings in acquired businesses.