INEOS Enterprises Holdings Limited (“INEOS Enterprises”) reports its trading performance for the second quarter 2022.
Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the second quarter 2022 was €133M. This compares to an EBITDA of €127M for the second quarter 2021 and €143M in the prior quarter.
Market conditions were largely healthy throughout the quarter, with robust demand in all regions and markets. Volatility in energy prices created some margin pressure, mainly in Europe, but we continued to be flexible on pricing actions to manage these.
Pigments’ reported Q2 2022 EBITDA of €56M, compared to €32M in Q2 2021 and €33M in the prior quarter. Demand in North America remained consistently strong through the key application season in the domestic region. Strong market conditions supported price rises implemented in the quarter. Both production sites returned to full production and reliability following the issues reported previously.
Composites’ Q2 2022 EBITDA was €51M, compared to €44M in Q2 2021 and €53M in the prior quarter. Demand remained strong in the Composites business, particularly in North American automotive and anti-corrosion markets. Demand in Europe and India was more balanced in the quarter as inventory levels stabilised across the supply chain. Our Asian plant continued to be impacted by COVID as with the prior quarter. The business continues to manage raw materials price movements and margins remained stable and strong through the quarter.
In Q2 2022, Solvents’ EBITDA was €12M, compared to €42M in Q2 2021 and €43M in the prior quarter. Results in the quarter were impacted by an extended unplanned shut down of the Acetylene production asset, which resulted in lost volumes of approximately 11 kilo tonne (c. €20m EBITDA). The unit was operational again at the end of the quarter. The markets for IPA and Ethanol were challenging during the quarter. The business continued its focus on managing volatility in energy costs to maintain stable margins, but volumes were impacted by slowing demand and imports from Asia.
Chemical Intermediates reported Q2 2022 EBITDA of €19M compared to €16M in Q2 2021 and €19M in the prior quarter. As with the prior quarter, market conditions remained very strong for all products at our Joliet business. The results of the Chemical Intermediates division were supported by stable performance in the Calabrian and Compounds businesses.
We continue to invest in our Hygienics business marketing and product development. During the quarter, the business expanded its portfolio and launched a new range of handwashes designed specifically for the retail markets in the UK and EU, supported by a brand relaunch and new advertising campaign that will launch in Q3 2022. The business reported an EBITDA loss for the quarter, of €(5)M which compares to €(7)M in Q2 2021 and €(5)M in the prior quarter.
In line with our conservative financial policy, we have maintained a prudent capital position with continued control over our operating cost base. At the end of the quarter, we report cash balances of €363M and net debt of €910M, resulting in a net debt leverage of c.1.8x.