Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the fourth quarter 2022 was €72m. This compares to an EBITDA of €95m for the fourth quarter 2021, €111m in the prior quarter and results in a full year EBITDA of €459m. Pro-forma for the INEOS KOH acquisition, completed in Q4, full year EBITDA is €504m.
Overall performance has been steady under challenging market conditions this quarter. Energy prices in European markets have steadied, countered by exceptional cold weather in North America causing a short period of production outage at our Ashtabula site.
In December, INEOS Enterprises completed the acquisition of Ashta Chemicals Inc., now known as INEOS KOH. The business will provide long-term local supply and adds chlorine, used at our Pigments business, to the Enterprises product portfolio. Results will be included in our Pigments reporting segment.
Pigments’ reported Q4 2022 EBITDA of €36m, compared to €29m in Q4 2021 and €59m in the prior quarter. Q4 2022 EBITDA also includes €2m for the December result of INEOS KOH. North American production remained strong after being impacted by extremely cold weather in North America during December. Demand has been more balanced in the quarter as inventory levels stabilised across the supply chain, impacting volumes, albeit prices have remained steady.
Composites’ Q4 2022 EBITDA was €40m, compared to €44m in Q4 2021 and €42m in the prior quarter. Demand remained strong in North America and Asia for the quarter with stable margins. European markets remain more balanced as imported products from Asia saw some volume erosion. The business continues to manage raw materials price movements and margins remained strong through the quarter.
In Q4 2022, Solvents’ EBITDA was €(7)m, compared to €18m in Q4 2021 and €(1)m in the prior quarter. Solvents’ cost of sales continues to be negatively impacted by high energy prices in Germany and Q4 results include an unrealised inventory holding loss of €(18)m. High energy prices continue to drag on manufacturing sentiment in general. Volumes have been impacted by reduced demand, but we have also seen increased imports from Asia. Unit margins have remained stable as the business has focussed on passing through higher input costs.
Chemical Intermediates reported Q4 2022 EBITDA of €8m compared to €11m in Q4 2021 and €17m in the prior quarter. The Joliet business has seen reasonable demand across its products but some increased imports from Asia, where underlying feedstock prices remain more favourable, impacted volumes in the quarter. The results of the Chemical Intermediates division were supported by stable performance in the Calabrian and Compounds businesses.
Hygienics reported an EBITDA loss for the quarter of €(5)m which compares to €(8)m in Q4 2021 and €(6)m in the prior quarter. The business continues to expand its portfolio and launch new product ranges of handwashes, soaps and wipes.
In line with our conservative financial policy, we have maintained a prudent capital position with continued control over our operating cost base. At the end of the quarter, we reported cash balances of €325m and net debt of €1,210m, resulting in a pro-forma net debt leverage of c.2.4x.
In January, INEOS Enterprises entered into an agreement to acquire MBCC Group’s Admixture Business from Sika AG, a global leader in the production of concrete additives. The acquisition is expected to complete in the first half of 2023 subject to regulatory approvals.