Trading Statements

Trading Statement Q2 2022 - INEOS Quattro Holdings Limited


INEOS Quattro Holdings Limited (‘INEOS Quattro’ or the ‘Group’) announces its trading performance for the second quarter of 2022.


Based on unaudited management information, INEOS Quattro reports that EBITDA for the second quarter of 2022 was €917 million, compared to €937 million for Q2, 2021 and €887 million for Q1, 2022. LTM EBITDA was €3,259 million.

All of the Group’s key sites have continued to operate fully during the COVID-19 virus pandemic and supply chains have operated without significant disruption. Uncertainty related to feedstock price movements has generated some demand erosion, but market conditions remained healthy throughout the quarter.
Styrolution reported EBITDA of €287 million compared to €392 million in Q2, 2021. Volatile feedstock price movements had an impact on demand and margin development during the quarter. Overall polymer demand reduced as customers postponed orders due to market uncertainty. As a result, market margins softened especially in Asia. Global supply chain restrictions continued to limit polymer exports from Asia into other regions and sustained good margins in the Americas and EMEA.


INOVYN reported EBITDA of €344 million compared to €300 million in Q2, 2021. Despite the very high cost of gas and electricity, EBITDA performance in the second quarter of 2022 reached a new record, driven by record caustic soda selling prices and record levels of PVC spreads over ethylene in Europe. Contract prices of caustic soda in Europe (as reported by IHS Markit) were €735 per ton, 180% higher than Q2, 2021. Volumes of key products were lower than Q2, 2021, a result of key turnaround events at our assets in Norway and the Feyzin cracker in France, both of which experienced delays in start-up following the completion of the planned maintenance activities.


Acetyls reported EBITDA of €137 million compared to €185 million in Q2, 2021. In Europe, demand remained steady and the reducing gas price brought some welcome relief to affordability and competitiveness. In the US, markets were tight on the back of low stock levels and strong margins. Asia saw margins come off the extreme highs seen early last year as supply issues eased and COVID has started to weaken demand for both Acetic Acid and derivatives.

Aromatics reported EBITDA of €149 million compared to €60 million in Q2, 2021. Volatility in utilities and raw material pricing increased during the quarter, particularly in Europe and the US. The value of mixed xylenes, the feedstock for US and European PX production, has seen its alternative value as a high octane gasoline blend component rise much faster than underlying crude or gasoline and the contract price for PX, squeezing margins in both regions. PTA sales volumes and margins were higher across all regions when compared to the same period in 2021. The high demand for polyester resin in the US continued to provide strong support for domestic producers of PTA. Margins for European producers however came under pressure from high energy prices and improved availability of lower cost Asian imports. A tighter PTA market balance allowed margins and volumes to expand in Indonesia, while Chinese operations benefitted from a move away from high “cost to serve” domestic PTA sales into a more rewarding export market.


The Group has continued to focus on cash management and liquidity. Net debt was approximately €5,350 million at June 30, 2022. Cash balances at the end of the quarter were €1,314 million. There was availability under undrawn securitization facilities of €840 million. Net debt leverage was approximately 1.6 times EBITDA at the end of June 2022.