INEOS GROUP HOLDINGS S.A.

Q4, 2020 Trading Statement

INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the fourth quarter of 2020.

Based on unaudited management information INEOS reports that EBITDA for the fourth quarter of 2020 was €479 million, compared to €409 million for Q4, 2019 and €431 million for Q3, 2020. Full year EBITDA was €1,535 million compared to €1,945 million for 2019. 

All of the Group’s sites have continued to operate fully during the current COVID-19 virus pandemic and supply chains have operated without significant disruption.  Since the low point of the crisis in the second quarter, economies across the world have emerged from lockdowns and market conditions have continued to improve in the fourth quarter.  There have been further encouraging signs from the automotive, durables and construction sectors.  Overall core market conditions for all of the businesses are now positive, particularly in Asia.

O&P North America reported EBITDA of €212 million compared to €120 million in Q4, 2019.  Full year EBITDA was €554 million compared to €727 million for 2019.  Ethylene markets remained stable and margins saw some improvement in the quarter, as industry supply was impacted by some hurricane related outages.  Polymer markets were tight, due to a combination of strong demand and competitor supply outages in the quarter.  Margins improved in the quarter for both polyethylene and polypropylene.

O&P Europe reported EBITDA of €119 million compared to €139 million in Q4, 2019. Full year EBITDA was €395 million compared to €591 million for 2019.  Markets for olefins in the quarter were stable, with solid demand across all products.  Demand for butadiene and benzene was particularly strong, resulting in significant price increases in the quarter. European polymer demand was good, with further improvements in durables demand and continued strength in the consumables markets.

Chemical Intermediates reported EBITDA of €148 million compared to €149 million in Q4, 2019. Full year EBITDA was €586 million compared to €627 million for 2019.  The overall demand trend in the Oligomers business was good across many product sectors and markets, with particular strength in co-monomers and high viscosity PAO. Demand for the Oxide business improved, with tighter markets supported by some competitor supply outages in the quarter.  The markets for the Nitriles business were tighter in both ABS and acrylic fibre, due improved automotive and durable demand, particularly in Asia.  Demand for the Phenol business was solid, with improvements in both residential construction and automotive sectors.

In December 2020 the Group acquired the remaining 50% share in the Gemini HDPE joint venture from Sasol for a gross consideration (including debt assumed) of $404 million.  The acquisition was funded by an increase in the Gemini Term Loan facility to $600 million. The Group now owns 100% of the joint venture, and Gemini has been consolidated as a wholly owned subsidiary for the first time as at December 31, 2020.

The Group has continued to focus on cash management and liquidity.  Net debt was approximately €6.3 billion at the end of December 2020 (including the new Gemini Term Loan).  Cash balances at the end of the quarter were €1,342 million, and availability under undrawn working capital facilities was €394 million.  Net debt leverage was approximately 4.1 times as at the end of December 2020.