Trading Statements

Trading Statement Q2, 2021

Q2, 2021 Trading Statement

INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the second quarter of 2021.

Based on unaudited management information INEOS reports that EBITDA for the second quarter of 2021 was a record €1,034 million, compared to €260 million for Q2, 2020 and €706 million for Q1, 2021. 

All of the Group’s sites have continued to operate fully during the current COVID-19 virus pandemic and supply chains have operated without significant disruption.  Market conditions have been buoyant in the second quarter, with very strong demand in all regions and markets. 

O&P North America reported EBITDA of €428 million compared to €103 million in Q2, 2020.  Ethylene markets were tight, with a combination of strong derivative demand and some industry outages impacting supply, leading to improved margins in the quarter.  Polymer markets were buoyant with strong demand from a resurgent US economy.  Margins were very healthy in the quarter, particularly for polypropylene.

O&P Europe reported EBITDA of €272 million compared to €45 million in Q2, 2020.  Markets for olefins in the quarter were good, with healthy demand across all products, together with some supply constraints from the industry turnaround season.  Demand for butadiene and benzene was particularly strong, resulting in significant price increases in the quarter.  Demand in European polymer markets was strong in both durables and consumables markets.

Chemical Intermediates reported EBITDA of €334 million compared to €112 million in Q2, 2020. The overall demand trend in the Oligomers business was good across the product portfolio, with particular strength in co-monomers and high viscosity PAO.  Demand was very good across all market sectors for the Oxide business, with tight markets supported by competitor supply constraints and lower levels of imports to Europe. The markets for the Nitriles business were tight, with strong demand in all sectors and regions coupled with industry supply constraints due to a number of competitor outages.  Demand for the Phenol business was strong, particularly in the construction, electronics and automotive sectors.

The Group has continued to focus on cash management and liquidity.  Net debt was approximately €6.2 billion at the end of June 2021 (including the new Gemini Term Loan).  Cash balances at the end of the quarter were €1,519 million (after the payment of a €300 million dividend in the quarter), and availability under undrawn working capital facilities was €783 million.  Net debt leverage was approximately 2.35 times as at the end of June 2021.