INEOS Enterprises Holdings Limited (“INEOS Enterprises”) reports its trading
performance for the first quarter 2022.
Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the first quarter 2022 was €143M, a new quarterly record for the group. This compares to an EBITDA of €93M for the first quarter 2021 and €95M in the prior quarter.
All of Enterprises’ 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 healthy throughout the quarter, with robust demand in all regions and markets.
Pigments reported Q1 2022 EBITDA of €33M, compared to €29M in Q1 2021 and €29M in the prior quarter. Demand in Q1 remained consistently strong, supporting price increases implemented in the quarter. Following production issues reported in Q4, one reactor was operated at a slightly reduced production rate for part of the quarter and both sites were impacted by severe weather leading to power outages in the quarter. Combined, this resulted in lost sales volumes of approximately 8Kilo-tonnes.
Composites’ Q1 2022 EBITDA was €53M, compared to €32M in Q1 2021 and €44M in Q4 2021. Following on from Q4, demand remained very strong in both America and Europe with notable stocking taking place by customers, particularly in Europe. The business continues to monitor cost inflation and has successfully passed through increased costs in the quarter. Production in China was negatively impacted by restrictions put in place by the Government in response to new COVID-19 cases at the end of the quarter.
In Q1 2022, Solvents’ EBITDA was €43M, compared to €36M in Q1 2021 and €18M in the prior quarter. BDO continues to experience significant demand and has returned to full production volumes following the scheduled turnaround in the prior quarter. OxySolvents had good demand, particularly for MEK and SBA in the quarter, with IPA and Ethanol remaining more balanced. Margins were squeezed following the volatility in energy costs, especially in March, but ultimately remain robust following price action taken in the business.
Chemical Intermediates reported Q1 2022 EBITDA of €19M compared to €5M in Q1 2021 and €12M in the prior quarter. Market conditions remained very strong for all products at our Joliet business. Calabrian saw strong demand for SO2, driven by the mining sector and Compounds’ had a good performance based on strong production and seasonal return of customer demand.
We continue to invest in marketing spend and product development in our Hygienics business. During the quarter the business launched a range of sanitising wipes and began the development of soaps and gels designed specifically for the UK medical sector. The business reported an EBITDA loss for the quarter, of €(5)M which compares to €(9)M in Q1 2021 and €(8)M in the prior quarter.
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 report cash balances of €361M and net debt of €941M, resulting in a net debt leverage of c.1.9x.