INEOS Group Holdings plc (‘IGH' or ‘Ineos') is pleased to confirm that trading in the first quarter of 2007 has been strong and significantly improved from Q4, 2006. Overall asset utilisation was high and the robust market environment continues to enable us to achieve strong operating margins.
INEOS GROUP HOLDINGS PLC
Q1, 2007 Trading Update
INEOS Group Holdings plc (‘IGH' or ‘Ineos') is pleased to confirm that trading in the first quarter of 2007 has been strong and significantly improved from Q4, 2006. Overall asset utilisation was high and the robust market environment continues to enable us to achieve strong operating margins.
O&P Europe experienced an excellent trading performance in the quarter. Both volumes and margins were strong on the back of lower raw material prices and healthy end-user demand.
The O&P North America segment has seen an improving performance through the first quarter after a relatively weak start to the year.
The Refining segment has also seen an improvement in performance compared to Q4, 2006. Overall market conditions were relatively good and operating margins have reflected this. Nevertheless, the Refining performance in the quarter was impacted by a number of factors including a scheduled shutdown at the Grangemouth refinery, the impact of the strike at the Port of Marseilles on the Lavera refinery and some inventory holding losses as crude oil prices declined sharply in the first part of the quarter.
Chemical Intermediates has also experienced a strong performance in the first quarter. The Phenol business has seen a rebound in its results with improved acetone margins. There have also been strong margins achieved by the Nitriles business as a result of lower raw material prices and continued healthy product prices.
Consolidated financial statements for the first quarter will be available on May 25, 2007. Based on management information Ineos expect that EBITDA for the first quarter of 2007 will be in the region of €570m.