INEOS GROUP HOLDINGS S.A.

Q4, 2021 Trading Statement

INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the fourth quarter of 2021.

Based on unaudited management information INEOS reports that EBITDA for the fourth quarter of 2021 was €814 million, compared to €479 million for Q4, 2020 and €1,062 million for Q3, 2021.  Full year EBITDA was a record €3,616 million compared to €1,535 million for 2020.

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 buoyant in the quarter, with strong demand in all regions and markets. 

O&P North America reported EBITDA of €344 million compared to €212 million in Q4, 2020.  Full year EBITDA was €1,577 million compared to €554 million for 2020. Ethylene markets were balanced, with a combination of strong derivative demand and some industry capacity returning online during the quarter.  Polymer markets were solid with strong demand from a resurgent US economy.  Margins for polymers were very healthy in the quarter.

O&P Europe reported EBITDA of €194 million compared to €119 million in Q4, 2020.  Full year EBITDA was €948 million compared to €395 million for 2020. Markets for olefins in the quarter were good, with healthy demand across all products, together with some supply constraints from industry outages. Demand in European polymer markets was firm in all segments with solid margins.

Chemical Intermediates reported EBITDA of €276 million compared to €148 million in Q4, 2020. Full year EBITDA was €1,091 million compared to €586 million for 2020. Overall demand in the Oligomers business was good across the product portfolio, with particular strength in co-monomers.  Demand was very good across all market sectors for the Oxide business, with tight markets supported by some competitor supply constraints in Europe. Demand for the Nitriles business was strong, particularly in the key sectors of ABS, acrylic fibre and carbon fibre.  Markets for the Phenol business were firm with strong demand across the construction, durables and electronics sectors.

The Group has continued to focus on cash management and liquidity. Net debt was approximately €5.7 billion at the end of December 2021 (including the Gemini Term Loan).  Cash balances at the end of the quarter were €2,106 million, and availability under undrawn working capital facilities was €782 million.  Net debt leverage was approximately 1.6 times as at the end of December 2021.