Trading Statement Q1 2021 - INEOS Quattro Holdings Limited
INEOS Quattro Holdings Limited (‘INEOS Quattro’ or the ‘Group’) announces its trading performance for the first quarter of 2021.
Based on unaudited management information, INEOS Quattro reports that EBITDA for the first quarter of 2021 was €647 million, compared to €283 million for Q1, 2020 and €447 million for Q4, 2020. LTM EBITDA was €1,785 million, compared to €1,421 million for 2020. Comparative results for 2020 are stated pro forma for the acquisition of the former BP Acetyls and Aromatics businesses.
The chemical industry is deemed as essential critical infrastructure by governments across the world. All of the Group’s key sites have continued to operate fully during the COVID-19 virus pandemic and supply chains have operated without significant disruption. The automotive and durables sectors are improving, and there are encouraging signs from the construction sector. Overall core market conditions for all of the businesses have improved from the lows seen in during 2020.
Styrolution reported EBITDA of €316 million compared to €138 million in Q1, 2020.
The EBITDA performance in the first quarter of 2021 was the highest since the Styrolution business was formed. Very strong trading conditions in our Polymer segments drove the strong performance, particularly in Asian markets. Limited polymer imports from Asia also provided a margin boost for American and European producers. The US Gulf Coast was hit by winter storm Uri in February, which curtailed our Styrene and Polymer production and sales capacity in the Americas.
INOVYN reported EBITDA of €207 million compared to €146 million in Q1, 2020. The EBITDA performance in the first quarter of 2021 was a near record level. The strong result is driven by a very tight global market for general purpose PVC, pushing spreads over ethylene to record levels. The PVC market tightness is due to a combination of both strong demand and supply disruptions, particularly in the US. Global demand for specialty PVC was also strong with healthy margins and volumes achieved. In contrast, caustic soda markets were less buoyant, with prices reducing in the first quarter of 2021, compared to Q1, 2020 and Q4, 2020.
Acetyls reported EBITDA of €58 million compared to €32 million in Q1, 2020. The improved Q1 results were a consequence of good global acetic acid demand coupled with supply outages. Hurricane Uri impacted product availability in the US, and there were several unplanned plant outages in China that led to a fall in inventories and rising prices. The European market became tighter through the quarter as imports dried up from the both the US and Asia, with contract and spot pricing moving up by the end of March. Demand in all regions was strong with vinyl acetate monomer (VAM) being the best out of all the key derivatives.