INEOS GROUP HOLDINGS S.A.

Q3, 2023 Trading Statement

INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the third quarter of 2023.

Based on unaudited management information INEOS reports that EBITDA for the third quarter of 2023 was €403 million, compared to €511 million for Q3, 2022 and €387 million for Q2, 2023.

High energy costs, particularly in Europe, together with continued high inflation rates have led to reduced demand levels and weak margins. North American markets were relatively robust, taking full benefit from their current cost advantage.  Market conditions in Europe and Asia have remained weak in the quarter. Nevertheless, the business saw a slowly improving trend in performance throughout the quarter.

O&P North America reported EBITDA of €177 million compared to €207 million in Q3, 2022. Ethylene markets were generally weaker in the quarter with lower demand, improved industry supply availability and reduced export opportunities. Polymer markets were softer with erosion of margins for most products in the quarter, although pipe markets remained solid. The results in the quarter were adversely impacted by an incident on a pipeline at the Chocolate Bayou, Texas facility, which resulted in reduced operating rates during the quarter.

O&P Europe reported EBITDA of €103 million compared to €149 million in Q3, 2022. Markets for olefins in the quarter were generally weaker with most industry crackers being trimmed across Europe. Propylene markets were soft with weak demand across most derivatives due to high energy costs. European polymer markets were long with reduced demand and increased levels of imports, although there was some improvement towards the end of the quarter.

Chemical Intermediates reported EBITDA of €123 million compared to €155 million in Q3, 2022. Overall demand in the Oligomers business was solid across the product portfolio, although there was some weakness in Asian markets. Demand was weaker across most market sectors for the Oxide business, particularly the European glycol markets. The results were adversely impacted in the quarter by an incident on a supplier pipeline to the Plaquemine, Louisiana site. Demand for the Nitriles business was mixed, with firm demand in the USA, but softer demand in Europe due to high energy costs, and Asia due to improved industry supply.  Markets for the Phenol business were balanced in the USA, but weaker in Europe and Asia.

The Group has continued to focus on cash management and liquidity. Net debt was approximately €8.1 billion at the end of September 2023 (including the SECCO Term Loan and Project One Facility).  Cash balances at the end of the quarter were €2,220 million, and availability under undrawn working capital facilities was €541 million. Net debt leverage (excluding the SECCO Term Loan and Project One facility) was approximately 4.1 times as at the end of September 2023.