Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the first quarter 2023 was €96m. This compares to a record EBITDA of €143m for the first quarter 2022 and €72m in the prior quarter.
Performance in Q1 showed improvements over 2022 Q4, despite challenging market conditions. We saw continued margin pressure and weak demand in Europe and the effects of destocking in North America.
Pigments’ reported Q1 2023 EBITDA of €38m, compared to €33m in Q1 2022 and €36m in the prior quarter. The Q1 2023 EBITDA of KOH was €10m. Q1 continued to show a trend of destocking through the customer base with demand impacted by a slowdown in the domestic housing market. Prices remained stable however, so overall margins held up well. Demand for KOH remained strong, offset by an unplanned outage of KOH plant in March which has since been fully repaired.
Composites’ Q1 2023 EBITDA was €49m, compared to €53m in Q1 2022 and €40m in the prior quarter. Demand remained strong in North America, particularly in transportation and anti-corrosion projects, with some softness in the residential construction sector. Asia was seasonally impacted by Chinese New Year shutdowns, but demand returned through the quarter. Europe experienced reasonable demand however we saw increased imports into the region which impacted volumes. Margins continue to hold up well in all three regions.
In Q1 2023, Solvents’ EBITDA was €10m, compared to €43m in Q1 2022 and €(7)m in the prior quarter. Demand has picked up in general, however sentiment in the region remains subdued. We continue to see increased imports from Asia which currently have an advantaged margin environment compared to Europe, but this has slowed in the quarter which saw some improved volumes over the prior quarter. Solvents’ experienced improvements in European energy prices with overall margins holding up.
Chemical Intermediates reported Q1 2023 EBITDA of €5m compared to €19m in Q1 2022 and €8m in the prior quarter. Joliet has seen stable demand and volumes in Maleic Anhydride (MAN), offset negatively by volumes for its other products (TMA and PIA). Margins in PIA have come under pressure by increased imports from Asia. Calabrian and Compounds remain stable albeit, as with Solvents, European volumes remain challenged.
Hygienics reported an EBITDA loss for the quarter of €(5)m which compares to €(8)m in Q4 2021 and €(6)m in the prior quarter. The business continues to expand its portfolio and develop new product ranges while focusing on increasing its distribution outlets.
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 reported cash balances of €313m and net debt of €1,208m, resulting in a pro-forma net debt leverage of c.2.7x.