INEOS Enterprises Holdings Limited (“INEOS Enterprises”) reports its trading performance for the third quarter 2022.
Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the third quarter 2022 was €111M. This compares to an EBITDA of €130M for the third quarter 2021 and €133M in the prior quarter.
Overall, market conditions have been steady, with European markets continuing to face volatile energy prices countered by more stable conditions across other regions.
Pigments’ reported Q3 2022 EBITDA of €58M, compared to €37M in Q3 2021 and €56M in the prior quarter. North American margins remained strong supported by reliable production rates and high levels of domestic demand. There was some production volume impact as a result of wet weather disruption caused by storms in the quarter, although no lasting damage was sustained and the production facilities were operating normally at quarter end.
Composites’ Q3 2022 EBITDA was €41M, compared to €48M in Q3 2021 and €51M in the prior quarter. Demand in North America remained strong for the quarter supporting stable margins and volume across all products. Demand in Europe and India was more balanced in the quarter as inventory levels stabilised across the supply chain. In addition, energy prices in Europe resulted in more imported product from lower cost regions. Our Chinese plant continued to be impacted by COVID as with the prior quarter. The business continues to manage raw materials price movements and margins remained strong through the quarter.
In Q3 2023, Solvents’ EBITDA was €(1)M, compared to €36M in Q3 2021 and €12M in the prior quarter. Solvents continues to be affected by increased energy prices in Germany which remain extremely volatile and have negatively impacted margins and sales volumes. The management of the business continued to focus on managing the volatility in energy costs and maintaining stable margins, but volumes were ultimately impacted by slowing demand and rising imports from Asia.
Chemical Intermediates reported Q3 2022 EBITDA of €16M compared to €15M in Q3 2021 and €19M in the prior quarter. Market conditions remained strong for all products at our Joliet business but with particular strength for maleic anhydride. The results of the Chemical Intermediates division were supported by stable performance in the Calabrian and Compounds businesses.
Hygienics reported an EBITDA loss for the quarter, of €(6)M which compares to €(6)M in Q3 2021 and €(5)M in the prior quarter. The business continued to work on the development of its retail offering and supporting the launch of its new soaps line of products.
In line with our conservative financial policy, we have maintained a prudent capital position with continued control over our operating cost base. During the quarter, INEOS Enterprises made a €100m voluntary repayment of the intercompany subordinated loan. At the end of the quarter, we report cash balances of €321M and net debt of €975M, resulting in a net debt leverage of c.2.0x.
In October, INEOS Enterprises entered into an agreement to acquire Ashta Chemicals Inc, a North American producer of Chlorine and a range of potassium-based chemicals. The transaction is expected to be financed by an amendment of our existing Term Loan A, provided by a group of relationship banks. The acquisition is expected to complete by the end of the year subject to any customary completion filings.