INEOS GROUP HOLDINGS S.A.

Q4, 2023 Trading Statement

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

Based on unaudited management information INEOS reports that EBITDA for the fourth quarter of 2023 was €451 million, compared to €392 million for Q4, 2022 and €403 million for Q3, 2023. Full year EBITDA was €1,685 million compared to €2,841 million for 2022.

Elevated inflation and interest rates, together with continued high energy costs in Europe 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 an improving trend in performance throughout the quarter.

O&P North America reported EBITDA of €149 million compared to €176 million in Q4, 2022. Full year EBITDA was €720 million compared to €1,204 million for 2022. Ethylene markets were generally subdued in the quarter with lower demand, improved industry supply availability and reduced export opportunities. Polymer markets were soft with some erosion of margins for most products in the quarter, although downstream pipe markets remained solid.

O&P Europe reported EBITDA of €147 million compared to €74 million in Q4, 2022. Full year EBITDA was €412 million compared to €656 million for 2022. Markets for olefins in the quarter were generally weak 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 relatively stable but continue to be subdued on overall low demand.

Chemical Intermediates reported EBITDA of €155 million compared to €142 million in Q4, 2022. Full year EBITDA was €553 million compared to €981 million for 2022. Overall demand in the Oligomers business was solid across the product portfolio, although there was some softness in co-monomers. There was modest demand improvement across most market sectors for the Oxide business, however European glycol markets remained weak. Demand for the Nitriles business was mixed, with balanced 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 firm in the USA, but weaker in Europe and Asia.

The Group has continued to focus on cash management and liquidity. Net debt was approximately €8.5 billion at the end of December 2023 (including the SECCO Term Loan and Project One Facilities).  Cash balances at the end of the quarter were €1,774 million, and availability under undrawn working capital facilities was €532 million.  Net debt leverage (excluding the SECCO Term Loan and Project One Facilities) was approximately 4.0 times as at the end of December 2023.