INEOS Enterprises Holdings Limited (“INEOS Enterprises”) reports its trading performance for the fourth quarter 2021.
Based on unaudited management information, INEOS Enterprises’ EBITDA before Special Items (“EBITDA”) for the fourth quarter 2021 was €95M. This compares to an EBITDA of €94M for the fourth quarter 2020 and €130M in the prior quarter.
INEOS Enterprises has continued to operate all sites with Covid-19 compliant processes in place. Given our importance to supporting the fight against Covid-19, resources have been made available to ensure the safety of our people and preserve continuity across the business.
Pigments reported Q4 2021 EBITDA of €29M, compared to €29M in Q4 2020 and €37M in Q3 2021. Pigments continued to experience strong demand over the quarter, with the market remaining tight across North America and Europe. As a result, margins remained particularly strong for the Division. Temporary unplanned production issues in the quarter resulted in lost sales volumes of approximately 9 kilo-tonnes.
Composites’ Q4 2021 EBITDA was €44M, compared to €40M in Q4 2020 and €48M in Q3 2021. Composites continued to see very strong demand across the quarter, again most notably in Europe and North American markets, where the anticipated seasonal slowdown was less pronounced than in prior years. Demand remained strong across DIY applications such as engineered stone and sanitaryware and remained robust in construction and infrastructure allowing pass through of raw material price rises in the quarter.
In Q4 2021, Solvents’ EBITDA was €18M, compared to €28M in Q4 2020 and €36M in Q3 2021. Volumes were down quarter on quarter as BDO underwent its scheduled major maintenance turnaround in Q4. Some further volume loss was also suffered due to unplanned lost production as the plant returned to its normal operating rate. Demand for BDO remains very strong, particularly in Europe and Asia with a more balanced dynamic across other products. Margins in the Solvents division, particularly Oxy-Solvents, were negatively impacted in the quarter by the record gas prices seen in Europe, where gas is primarily a variable cost used for steam production at Moers.
Chemical Intermediates reported Q4 2021 EBITDA of €12M compared to €3M in Q4 2020 and €15M in Q3 2021. Market conditions remained very strong for all products at our Joliet business, with some minor volume impact from the planned turnaround that was completed early in the quarter. Calabrian saw strong demand for SO2 in the quarter and Compounds’ had a good performance based on strong production and customer demand.
We continue to invest in marketing spend and product development in our Hygienics business. During the quarter the business launched the Sports range of products and new moisturising product ranges. The business reported an EBITDA loss for the quarter, of €(8)M which compares to €(6)M in Q4 2020 and €(6)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 €338M and net debt of €972M, resulting in a net debt leverage of c.2.2x. In the quarter the existing securitisation facility was refinanced for a three year period with a €250m facility provided by the existing lenders.