INEOS GROUP HOLDINGS S.A.

April 19, 2024

 

Q1, 2024 Trading Statement

 

INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the first quarter of 2024.

Based on unaudited management information INEOS reports that EBITDA for the first quarter of 2024 was €516 million, compared to €444 million for Q1, 2023 and €451 million for Q4, 2023.

North American markets were relatively robust, taking full benefit from their current cost advantage.  Markets in Europe have shown improvement due to an increase in demand and the impact of logistical constraints through the Suez and Panama canals. Market conditions in Asia have remained soft in the quarter. The business has continued to see an improving trend in performance throughout the quarter.

O&P North America reported EBITDA of €227 million compared to €191 million in Q1, 2023. Ethylene markets were generally stable in the quarter with a combination of steady domestic demand, reduced industry supply availability and reduced export opportunities. Polymer demand was stable and downstream pipe markets remained solid on firm demand, particularly from the oil and gas sector.

O&P Europe reported EBITDA of €114 million compared to €90 million in Q1, 2023. Markets for olefins in the quarter were improved although most industry crackers are still trimmed across Europe. Markets for butadiene and benzene were firm in the quarter with higher demand and supply constraints. European polymer markets were stronger due to a combination of improved market sentiment, supply chain restocking and logistical import constraints.

Chemical Intermediates reported EBITDA of €175 million compared to €163 million in Q1, 2023. Overall demand in the Oligomers business was solid across the product portfolio, although there was some softness in co-monomers. There was modest demand improvement across most market sectors for the Oxide business, however European glycol markets remained weak. Demand for the Nitriles business was mixed, with good demand in the USA and Europe, but softer demand in Asia due to improved industry supply.  Markets for the Phenol business were firm in the USA and improved in Europe with better underlying demand and import supply constraints.

In February 2024 the Group issued new Senior Secured Term Loans and Senior Secured Notes of approximately €2.4 billion. The proceeds were used to partially redeem outstanding Senior Secured Notes due 2025 and 2026 and to provide funding for the proposed acquisition of LyondellBasell’s ethylene oxide and derivatives business in the US, the acquisition of cracker and derivative assets in Lavéra, France from an INEOS affiliate and TotalEnergies and to partially prefund Project One (being the Group’s major capital investment in Antwerp, Belgium).

In April 2024 the Group completed the acquisition of the Lavera assets for €0.4 billion.

The Group has continued to focus on cash management and liquidity. Net debt was approximately €8.8 billion at the end of March 2024 (including the SECCO Term Loan and Project One Facilities).  Cash balances at the end of the quarter were €3,076 million, and availability under undrawn working capital facilities was €666 million.  Net debt leverage (excluding the SECCO Term Loan and Project One Facilities) was approximately 3.9 times as at the end of March 2024.