2008 Trading update - INEOS Group Holdings PLC
INEOS Group Holdings PLC (‘INEOS’ or ‘Group’) is providing an update on liquidity and trading in the fourth quarter of 2008.
Based on unaudited preliminary management information, INEOS estimates that EBITDA adjusted to exclude inventory holding gains and losses (‘Replacement Cost’ or ‘RC’ EBITDA) was in the region of €300 million for Quarter 4, 2008. Full year 2008 RC EBITDA for the Group on this basis was €1,620 million, adjusted also to exclude the impact of exceptional events previously announced totaling €181 million (principally the Grangemouth strike impact).
Inventory holding losses in the fourth quarter were €1,005 million reflecting the significant decline in oil prices in the period. Net of inventory holding gains experienced in the first three quarters, total inventory holding losses for the full year were €845 million.
Net debt at the end of 2008 was €7.5 billion. The Group’s RC EBITDA to net debt leverage ratio was 4.6 times, which was in compliance with the year end leverage covenant of 5.25 times RC EBITDA.
Cash balances at the year end were €650 million following a scheduled loan amortisation payment in December of €125 million. In addition the Group has undrawn revolving credit facilities of €200 million. Repayments under the securitisation facility amounted to €360 million during the fourth quarter.
INEOS will be issuing a more detailed trading statement in February and this will be followed by a conference call with investors.
For further information contact:
Richard Longden +44 (0) 2380 287037 firstname.lastname@example.org