INEOS Quattro Holdings Limited (‘INEOS Quattro’ or the ‘Group’) announces its trading performance for the first quarter of 2025.
Based on unaudited management information, INEOS Quattro reports that EBITDA for the first quarter of 2025 was €235 million, compared to €291 million for Q1, 2024 and €155 million for Q4, 2024. The first quarter results were positively impacted by a commercial settlement with a supplier for €86 million as compensation for the termination of a product supply and related agreements.
As of January 1, 2025, the Group changed the definition of EBITDA reported by the Group to include the equity share of EBITDA rather than profit / loss after tax of the Group’s joint ventures. This reporting is consistent with the way management review the performance of the business units in the Group. Comparative numbers have been updated to reflect this change in definition.
European markets remained hampered by high energy costs and weak demand, but the introduction of anti-dumping duties helped to support sales volumes of PVC. In Americas markets, margins were negatively impacted by weak demand and continued oversupply in Asia. Asian markets continued to be weak with low margins in the quarter. In response to the challenging market conditions the Group has implemented and maintained a number of measures to conserve cash during this period, including policies to control all discretionary fixed costs across the businesses and a review of all capital projects to defer or reduce discretionary expenditure and scheduled turnarounds where it is safe to do so.
Styrolution reported EBITDA of €73 million compared to €105 million in Q1, 2024. ABS and Specialties sales remained stable with robust demand for durable polymer products. Increased sales in household, healthcare and toys were offset by lower packaging and automotive demand. Asian polymer margins continued their sequential improvement. Polystyrene volumes and margins decreased in Americas and EMEA due to weaker demand. Styrene volumes and margins improved during the quarter due to unplanned industry outages. Non-cash inventory holding gains were €4 million in Q1, 2025 compared to a gain of €29 million in Q1, 2024.
INOVYN reported EBITDA of €32 million compared to €76 million in Q1, 2024. Global and European market demand continued to be subdued in Q1,2025. However, the business experienced an improvement in sales volumes and operating rates on both sides of the ECU, despite a number of planned turnarounds in March 2025. Volumes improved as European production replaced US and Egyptian volumes following the imposition of EU anti-dumping duties in July 2024. Spreads over ethylene for general purpose PVC in both European and export markets remained in line with Q1, 2024 levels. Specialty PVC spreads in Europe continued to exceed historical averages, whilst in export markets they continued to be below historical norms. European demand for caustic soda remained steady, with market balances supported by recent supply constraints caused by planned maintenance and unexpected outages. Caustic soda prices in Europe experienced a modest increase compared to the same quarter last year, although margins declined due to significantly increased energy costs resulting from cold weather conditions across Europe.
Acetyls reported EBITDA of €123 million compared to €71 million in Q1, 2024. Margins held firm in the US. Europe continued to operate in a challenging environment impacted by weak demand and seasonal high gas and feedstock costs. Asian operating rates remained strong, but a well-supplied Chinese market weighed heavily on domestic margins which remained subdued. The results in the quarter benefitted from a commercial settlement with a supplier for €86 million as compensation for the termination of a product supply and related agreements.
Aromatics reported EBITDA of €7 million compared to €39 million in Q1, 2024. The US region grew PTA sales by 37% in the quarter though globally PTA sales volumes were 7% down on the prior year as a result of planned maintenance work and difficult trading conditions in Asia. Revenues for the quarter were lower compared to Q1, 2024 driven by a weaker price environment. Unit margins weakened compared to the prior year reflecting the price environment and continued oversupply in Asia. Non-cash inventory holding losses were €2 million in Q1, 2025 compared to a gain of €20 million in Q1, 2024.
Net debt was approximately €5,697 million at March 31, 2025. Cash balances at the end of the quarter were €1,799 million. There was availability under undrawn securitization facilities of €595 million. Net debt leverage was approximately 7.7 times EBITDA at the end of March 2025.