INEOS GROUP HOLDINGS S.A.
January 20, 2025
Q4, 2024 Trading Statement
INEOS Group Holdings S.A. (‘IGH’ or ‘INEOS’) announces its trading performance for the fourth quarter of 2024.
Based on unaudited management information INEOS reports that EBITDA for the fourth quarter of 2024 was €353 million, compared to €451 million for Q4, 2023 and €603 million for Q3, 2024. Full year EBITDA was €2,048 million compared to €1,685 million for 2023.
North American markets were relatively robust, taking full benefit from their current cost advantage. Markets in Europe have been stable, whereas market conditions in Asia have remained soft in the quarter. The business saw some seasonal weakness in demand in the second half of the fourth quarter with year-end inventory management by downstream customer markets.
O&P North America reported EBITDA of €153 million compared to €149 million in Q4, 2023. Full year EBITDA was €796 million compared to €720 million for 2023. Ethylene markets were generally stable in the quarter with steady domestic demand. Polymer demand was subdued but generally stable and downstream pipe markets remained solid on firm demand. The results for the quarter were adversely impacted by €25 million due to an unscheduled outage of one of the crackers in Chocolate Bayou.
O&P Europe reported EBITDA of €66 million compared to €147 million in Q4, 2023. Full year EBITDA was €470 million compared to €412 million for 2023. Markets for olefins in the quarter were stable although most industry crackers are still trimmed across Europe. Markets for butadiene were firm in the quarter with tight supply and stable demand. European polymer markets were subdued with reasonable market demand offset by downstream year-end inventory management. The results for the quarter were adversely impacted by €60 million due to a combination of an unscheduled outage of the Lavera cracker and logistical pipeline supply constraints in France.
Chemical Intermediates reported EBITDA of €134 million compared to €155 million in Q4, 2023. Full year EBITDA was €782 million compared to €553 million for 2023. Markets in both the US and Europe were softer due to end of year downstream inventory management. Overall demand in the Oligomers business was generally solid in all regions and across all product lines with firm demand from the drilling fluids, surfactants, and detergents segments. Demand across most market sectors for the Oxide business was stable. Demand for the Nitriles business was mixed, with good demand in the USA and Europe, but softer demand in Asia due to improved industry supply. Markets for the Phenol business were stable in the USA and Europe but weaker in Asia.
The Group has continued to focus on cash management and liquidity. Net debt was approximately €10.6 billion at the end of December 2024 (including the SECCO Term Loan and Project One Facilities). Cash balances at the end of the quarter were €2,477 million, and availability under undrawn working capital facilities was €561 million. Net debt leverage (excluding the SECCO Term Loan and Project One Facilities) was approximately 3.9 times as at the end of December 2024.