Trading Statement Q1, 2022
Q1, 2022 Trading Statement
INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the first quarter of 2022.
Based on unaudited management information INEOS reports that EBITDA for the first quarter of 2022 was €995 million, compared to €706 million for Q1, 2021 and €814 million for Q4, 2021. LTM March 2022 EBITDA was a record €3,904 million.
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. Market conditions have been healthy throughout the quarter, with strong demand in all regions and markets.
O&P North America reported EBITDA of €450 million compared to €244 million in Q1, 2021. Ethylene markets were balanced, with a combination of strong derivative demand and some industry capacity being offline for scheduled turnarounds. Polymer markets were solid with strong demand from a buoyant US economy. Margins for polymers were very healthy in the quarter. The results for Q1, 2021 were adversely impacted by the freezing weather conditions in Texas during the latter part of the quarter, which led to significant regional market disruption.
O&P Europe reported EBITDA of €210 million compared to €205 million in Q1, 2021. Markets for olefins in the quarter were firm, with healthy demand across all products, together with some supply constraints from industry outages. European polymer markets were generally balanced with solid margins.
Chemical Intermediates reported EBITDA of €335 million compared to €257 million in Q1, 2021. Overall demand in the Oligomers business was strong across the product portfolio, with particular strength in co-monomers. Volumes benefited from the continued ramp up of the new LAO facility in Chocolate Bayou, USA. Demand was very good across most market sectors for the Oxide business with solid markets for most products, although there was some weakness in glycol. Demand for the Nitriles business was mixed, with strong demand in the USA, particularly in the key market sector of ABS, and softer demand in Europe due to high energy costs. Markets for the Phenol business were firm, particularly in the USA, although there was some length in acetone globally.
The Group has continued to focus on cash management and liquidity. Net debt was approximately €5.3 billion at the end of March 2022 (including the Gemini Term Loan). Cash balances at the end of the quarter were €2,531 million, and availability under undrawn working capital facilities was €782 million. Net debt leverage was approximately 1.4 times as at the end of March 2022.