Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the third quarter 2024 was €68m. This compares to an EBITDA of €67m for the third quarter 2023 and €83m in the prior quarter.
Results were supported by stable margins in Q3, despite volume shortfalls due to a quiet summer period and planned maintenance shutdowns in several of our businesses. In line with wider INEOS businesses, results were supported by continued liquidity and fixed cost management across the Enterprises Group.
Composites’ Q3 2024 EBITDA was €43m, compared to €45m in Q3 2023 and €51m in the prior quarter. In North America, results were driven by robust margins and fixed cost management, partially offset by expected seasonally lower volumes. VER products performed well in the quarter, especially in the US. In Europe, project wins for VER in corrosion and UPR in construction supported stable volumes, despite extended customer shutdowns over the summer months. Asia had another strong quarter as demand remained high for UPR, particularly in India, and continued VER project wins in China in the mining sector.
Pigments’ reported Q3 2024 EBITDA of €31m, compared to €33m in Q3 2023 and €36m in the prior quarter. North American Titanium Dioxide demand remained seasonally low due to a subdued U.S. housing market. Results were impacted in the KOH business as a result of reduced sales offtake to a key customer and a reduction in the price of Chlorine. This was partially offset by fixed cost management and stable KOH market dynamics in the quarter. Tyssedal’s performance was impacted by a planned maintenance shutdown alongside a typical seasonal decline in demand, particularly for Pig Iron, resulting in lower volumes.
In Q3 2024, Solvents’ EBITDA was €(2)m, compared to €(6)m in Q3 2023 and €1m in the prior quarter. Overall, Q3 volumes increased, largely due to strong Secondary Butyl Alcohol (SBA) demand from key customers, despite pricing pressures from the market and customer shutdowns in the quarter. Results were further impacted by continued weak demand in the European BDO market, increased electricity prices and a planned shutdown in the quarter.
Chemical Intermediates reported EBITDA of €(1)m in Q3 2024 compared to €2m in Q3 2023 and €2m in the prior quarter. Results were impacted by additional costs incurred as a result of the failure of the Air Separation Unit in the Joliet business. However, this was partially mitigated by specific fixed cost savings projects at the site. The Compounds business had a strong quarter driven by robust margins as prices were maintained despite lower volumes following customer shutdowns over the summer period. In the Calabrian business, increased volumes across all products and stable pricing upheld margins which resulted in another strong quarter for the business.
Hygienics reported EBITDA of €(3)m in Q3 2024 compared to €(7)m in Q3 2023 and €(7)m in the prior quarter. The result in Q3 was driven by record volumes to date as products entered new major retailers across the UK. Results continue to be impacted by marketing spend as the business expands its product range and enters new markets and 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 €265m and net debt of €1,632m, resulting in pro forma net debt leverage of c.5.3x. Pro forma net debt leverage includes customary adjustments for expected synergies and fixed cost savings in acquired businesses.