Trading Statement Q1, 2021
Q1, 2021 Trading Statement
INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the first quarter of 2021.
Based on unaudited management information INEOS reports that EBITDA for the first quarter of 2021 was €706 million, compared to €365 million for Q1, 2020 and €479 million for Q4, 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 seen a significant improvement in the first quarter. There has been strong demand in all regions and markets, with encouraging signs from the automotive, durables and construction sectors.
O&P North America reported EBITDA of €244 million compared to €116 million in Q1, 2020. Ethylene markets were tight, and margins improved in the quarter. Polymer markets were buoyant due to a combination of strong demand and industry supply constraints in the quarter. Margins further improved in the quarter, particularly for polypropylene. The results 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 €205 million compared to €97 million in Q1, 2020. Markets for olefins in the quarter were stable, with healthy demand across all products. Demand for butadiene and benzene was particularly strong, resulting in significant price increases in the quarter. European polymer markets were tight, with strong demand in both durables and consumables markets coupled with lower levels of imports to the region.
Chemical Intermediates reported EBITDA of €257 million compared to €152 million in Q1, 2020. The overall demand trend in the Oligomers business was good across many product sectors and markets, with particular strength in co-monomers and high viscosity PAO. The business was adversely impacted by the freezing weather conditions in Texas during the quarter. Demand was good across all of the product portfolio for the Oxide business. The markets for the Nitriles business were tight, with strong demand in all sectors and regions coupled with industry supply constraints due to a number of competitor turnarounds. Demand for the Phenol business was strong, particularly in the construction, electronics and automotive sectors.
The Group has continued to focus on cash management and liquidity. Net debt was approximately €6.3 billion at the end of March 2021 (including the new Gemini Term Loan). Cash balances at the end of the quarter were €1,459 million, and availability under undrawn working capital facilities was €616 million. Net debt leverage was approximately 3.3 times as at the end of March 2021.