Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the first quarter 2024 was €81m. This compares to an EBITDA of €96m for the first quarter 2023 and €51m in the prior quarter.
Performance in Q1 showed encouraging improvement over Q4 2023, despite continued challenging market conditions. Margins were upheld through competitive pricing, particularly in our North American businesses, despite certain production issues and mixed demand across the regions and markets. In line with wider INEOS businesses, results were supported by continued cash and fixed cost management across the Enterprises Group.
Composites’ Q1 2024 EBITDA was €50m, compared to €49m in Q1 2023 and €38m in the prior quarter. The business had a strong quarter with high margins maintained across most product lines, particularly in North America. Europe continued to see reduced levels of demand and imported product from cost advantaged regions impacting sales volumes, particularly for UPR products. Margins were supported by significant improvement in sales of VER products and volume growth of PET resins into the construction industry despite raw material price increases. India had a record quarter with significant project wins for VER products and specialty UPR sales in wind and public infrastructure projects. Despite slow demand in China due to Chinese New Year festivities, results were supported by increased sales volumes in higher-margin VER products into local infrastructure projects.
Pigments’ reported Q1 2024 EBITDA of €26m, compared to €38m in Q1 2023 and €28m in the prior quarter. Q1 2024 EBITDA results included a loss of €(1)m for INEOS Tyssedal which was acquired in Q3 2023. Demand for Titanium Dioxide remained subdued across all regions in Q1, however signs of improvements in the housing market towards the end of the quarter delivered an increase in volumes compared to both the prior quarter and same period in 2023. Following signs of demand improvement amongst Titanium Dioxide producers, the Tyssedal business experienced improved business performance primarily due to increased Coarse Slag sales and lower variable costs on key raw materials. Reduced sales volumes with a key customer in the KOH business adversely impacted results in Q1.
In Q1 2024, Solvents’ EBITDA was €9m, compared to €10m in Q1 2023 and €(10)m in the prior quarter. Q1 results were strong compared to the prior quarter driven by overall increased volumes and higher margins for IPA. These were a result of international imports constraints, due to Red Sea and Suez Canal shipping logistics issues, and a competitor planned turnaround. Despite increased volumes, particularly for BDO and THF, and lower variable costs due to falling natural gas prices, results were adversely impacted by continued challenging market conditions for BDO in China and MEK and SBA in Europe.
Chemical Intermediates reported EBITDA of €0 in Q1 2024 compared to €5m in Q1 2023 and €(2)m in the prior quarter. Results for Q1 2024 were significantly impacted by extreme weather conditions disrupting key equipment at our Joliet site, in addition to continued weak TMA demand, which led to overall reduced sales volumes despite stable demand for MAN. This also led to a force majeure event for our production of PIA and TMA. The Compounds business produced strong volumes across all three sites and maintained strong margins throughout the quarter as a result of reduced feedstock costs. The Calabrian business reported strong performance supported by higher sulphur pricing and increased volumes due to a favourable customer mix.
Hygienics reported an EBITDA loss for the quarter of €(4)m which compares to €(6)m in Q1 2023 and €(3)m in the prior quarter. This was reflective of increased sales volumes compared to prior quarters, albeit at lower margins in addition to lower fixed costs from the phasing of marketing spend. The business continued to focus on the product and geographic expansion of its portfolio and development of new product ranges, including the successful launch of a new fabric conditioner in the quarter.
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. In the quarter, INEOS Enterprises made a repayment of the Subordinated Related Party Loan of c.€150m, refinanced the Receivables Securitisation Facility with a new facility maturing in 2027 and extended the recently acquired INEOS Tyssedal revolving working capital facility to 2027. At the end of the quarter, we reported cash balances of €250m and net debt of €1,685m, resulting in pro-forma, net debt leverage of c.5.3x.