Trading Statements

Trading Statement Q1, 2023


INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the first quarter of 2023.

Based on unaudited management information INEOS reports that EBITDA for the first quarter of 2023 was €444 million, compared to a record €995 million for Q1, 2022 and €392 million for Q4, 2022.

All of the Group’s sites have continued to operate fully during the on-going COVID-19 virus pandemic and supply chains have operated without significant disruption.  High energy costs, particularly in Europe, and continued high inflation rates have led to reduced demand levels and erosion of margins from the previous strong performance in the first half of 2022.

O&P North America reported EBITDA of €191 million compared to €450 million in Q1, 2022. Ethylene markets were generally weaker in the quarter with lower demand, improved industry supply availability and reduced export opportunities. Polymer markets were softer with erosion of margins for most products in the quarter, although pipe markets remained healthy. The results in the quarter were adversely impacted by a tornado event at the Batttleground, Texas site. The estimated reduction in EBITDA for the quarter due to the tornado was approximately €55m.

O&P Europe reported EBITDA of €90 million compared to €210 million in Q1, 2022. Markets for olefins in the quarter were generally weaker with most industry crackers being trimmed across Europe. Propylene markets were long with weak demand across most derivatives due to high energy costs. European polymer markets were weaker with reduced demand and increased levels of imports.

Chemical Intermediates reported EBITDA of €163 million compared to €335 million in Q1, 2022. Overall demand in the Oligomers business was robust across the product portfolio, with particular strength in co-monomers. Demand was weaker across most market sectors for the Oxide business, which impacted volumes. Demand for the Nitriles business was mixed, with firm demand in the USA, but softer demand in both Europe due to high energy costs, and Asia due to improved industry supply.  Markets for the Phenol business were balanced in the USA, but weaker in Europe.

In February 2023 the Group issued new Senior Secured Term Loans and Senior Secured Notes of approximately €2.6 billion. The proceeds were used to fully redeem the remaining Term Loans due 2024 as well as increasing the liquidity of the Group. In addition, the Group received certain guarantees which meant it could start drawing under the new Project One Facility in the quarter.

In March 2023 the Group completed the acquisition of the Mitsui Phenol Singapore business for approximately $0.3 billion.

The Group has continued to focus on cash management and liquidity. Net debt was approximately €7.0 billion at the end of March 2023 (including the new SECCO Term Loan).  Cash balances at the end of the quarter were €2,643 million, and availability under undrawn working capital facilities was €682 million.  Net debt leverage (excluding the SECCO Term Loan) was approximately 2.8 times as at the end of March 2023.