Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the second quarter 2024 was €83m. This compares to an EBITDA of €88m for the second quarter 2023 and €81m in the prior quarter.
Performance has been steady under continued challenging market conditions throughout the quarter. Strong margins supported the result in Q2, delivered through targeted competitive pricing actions. This was partially offset by volume shortfalls due to certain production issues and planned shutdowns in the quarter. In line with wider INEOS businesses, results were supported by continued liquidity and fixed cost management across the Enterprises Group.
Composites’ Q2 2024 EBITDA was €51m, compared to €51m in Q2 2023 and €50m in the prior quarter. The business had another strong quarter as robust margins were sustained through strategic pricing across most regions and product lines, in addition to ongoing fixed cost saving initiatives. In North America, the Gel Coat business was impacted by extended shutdowns in the marine sector, however, performance was supported by product wins for Vinyl Ester Resin (VER) in the leisure sector and UPR in the infrastructure sector. European demand for VER remained high, which delivered strong margins through increased sales volumes and lower raw material costs. The Rest of World regions performed well, supported by project wins, notably for VER products, with a record Q2 result for India.
Pigments’ reported Q2 2024 EBITDA of €36m, compared to €38m in Q2 2023 and €26m in the prior quarter. Q2 2024 results in the Pigments group included a profit of €14m for INEOS Tyssedal, which was acquired in Q3 2023. Production issues during the quarter negatively impacted volumes in the Pigments business as well as temporary logistics arrangements following the collapse of the Francis Scott Key Bridge in Baltimore in March. Broader macroeconomic factors remained subdued, as a result, demand remained below seasonal norms, albeit improved on the prior year. Volumes in the KOH business were adversely impacted due to reduced sales to a key customer, production challenges limiting product output and a planned maintenance outage at the site. Tyssedal’s performance significantly improved compared to the prior quarter, with higher CP Slag sales driven by customer restocking and increased Pig Iron sales due to a favourable customer mix and seasonality. Results were also supported by a reinstatement of eligibility for CO2 energy credits from the Norwegian government.
In Q2 2024, Solvents’ EBITDA was €1m, compared to €(4)m in Q2 2023 and €9m in the prior quarter. Q2 results were upheld by strong IPA pricing and increased export volumes for MEK, despite a subdued coatings season. Following international import constraints and a competitor planned turnaround in the prior quarter, the market for IPA was more balanced in Q2. Results in the quarter were negatively impacted by weak THF demand and the continued challenge in the BDO market. In addition to reduced demand, results were adversely impacted by a site power failure and an extended planned maintenance shutdown at the Marl site which limited production volumes.
Chemical Intermediates reported EBITDA of €2m in Q2 2024 compared to €8m in Q2 2023 and €0 in the prior quarter. Results for Q2 2024 continued to be impacted by the outage of the third-party process air supply at Joliet that occurred in Q1. The impact of this outage and the subsequent permanent closure of the TMA unit was partially mitigated by successful price and volume increases of PIA, alongside fixed cost savings across the site. The Compounds business maintained strong margins in Q2 as raw material prices reduced. The Calabrian business had another strong quarter with stable volumes and margins were improved by favourable spot pricing and lower variable costs.
Hygienics reported an EBITDA loss for the quarter of €(7)m which compares to €(5)m in Q2 2023 and €(4)m in the prior quarter. The result in Q2 was impacted by increased investment in marketing campaigns to support the product and geographic expansion of the portfolio. In line with the marketing strategy, the business delivered increased sales volumes compared to prior quarters and achieved a greater market share for both household and hygiene products through new listings at multiple retailers.
In line with our conservative financial policy, we have maintained a prudent capital position with continued control over our operating cost base and capital investment. At the end of the quarter, we reported cash balances of €295m and net debt of €1,637m, resulting in pro forma net debt leverage of c.5.3x. Pro forma net debt leverage includes pro forma adjustments for acquisitions, expected synergies and fixed cost savings.