Trading Statements

INEOS Quattro Holdings Limited (‘INEOS Quattro’ or the ‘Group’) announces its trading performance for the third quarter of 2024.

Based on unaudited management information, INEOS Quattro reports that EBITDA for the third quarter of 2024 was €161 million, compared to €166 million for Q3, 2023 and €244 million for Q2, 2024. The third quarter results were adversely impacted by non-cash inventory holding losses of approximately €46 million as a result of the large decline in raw material and product prices in the quarter.

Market recovery continued during the third quarter of 2024. Improved demand in the US and European markets continued to drive sales volumes up whilst margins remained subdued at a lower level compared to the third quarter of 2023. In response to the challenging market conditions the Group has implemented a number of measures to conserve cash during this period, including policies to control all discretionary fixed costs across the businesses and a review of all capital projects to defer or reduce discretionary expenditure and scheduled turnarounds where it is safe to do so.

Styrolution reported EBITDA of €51 million compared to €59 million in Q3, 2023. Polymer market demand in 2024 was stable in all regions, with solid demand for durable polymer products. Sales in the quarter in the focus industries were in line with Q3, 2023. Increased sales in electronics and toys were offset by lower Asian household and European automotive demand. The site at Channahon, US had to declare force majeure due to a full power outage caused by a tornado during the quarter. The financial impact on Q3, 2024 EBITDA was approximately €20 million. Styrene margins softened as styrene producers in the North American market returned from outages in the previous quarter. The non-cash inventory holding loss was approximately €14 million in Q3, 2024 due to a decrease in raw material prices compared to a loss of €14 million in Q3, 2023.

INOVYN reported EBITDA of €69 million compared to €77 million in Q3, 2023. The decrease in EBITDA was mainly the result of general purpose and specialty PVC margin reductions and lower caustic soda pricing, partially offset by lower energy costs, higher overall sales volumes and lower fixed costs. European producers of general purpose PVC benefited from lower imports of US material after the recent introduction of EU anti-dumping duties but overall domestic demand remained subdued on the back of weak construction activities, resulting in a hotly contested market and downward pressure on margins. Ample availability continued to depress prices and margins in export markets. Specialty PVC margins in domestic and export markets continued to suffer from low demand.  European caustic soda markets tightened in Q3, 2024, due to planned and unplanned outages but demand remained soft due to weak manufacturing activity. Combined with higher chlorine operating rates in Europe, this resulted in further reductions in selling prices. Energy prices were lower compared to Q3, 2023, although prices are still high compared with 2021 and prior.

Acetyls reported EBITDA of €40 million compared to €11 million in Q3, 2023. The quarter saw stronger sales volumes compared to Q3, 2023, in a challenging business environment. European demand was stable but continued to be under pressure from US imports. The US market demand was fair, with solid PTA and bottled beverage demand, remaining our strongest performing region on the back of its cost advantage. Asian operating rates remained strong, but a well-supplied Chinese market weighed heavily on domestic margins which remained subdued.

Aromatics reported EBITDA of €1 million compared to €19 million in Q3, 2023. Sales volumes in Q3, 2024 increased by 11% compared to the same period last year. All regions reported sales growth with Europe showing the largest gain as feedstock costs continued to normalize, increasing competitiveness of European PTA production and underpinning higher sales volumes. Globally PTA unit margins improved compared to the prior year, led by gains in Europe which more than offset softer margins in the US region. Revenues for the quarter were higher compared to same period last year, driven by strong volume gains which more than offset the lower price environment in 2024. Falling raw material prices resulted in non-cash inventory holding losses of €32 million in Q3, 2024 compared to a gain of €24 million in Q3, 2023.

Net debt was approximately €5,677 million as at September 30, 2024. Cash balances at the end of the quarter were €1,727 million. There was availability under undrawn securitization facilities of €580 million. Net debt leverage was approximately 7.0 times EBITDA at the end of September 2024.