INEOS Quattro Holdings Limited (‘INEOS Quattro’ or the ‘Group’) announces its trading performance for the fourth quarter of 2024.
Based on unaudited management information, INEOS Quattro reports that EBITDA for the fourth quarter of 2024 was €132 million, compared to €149 million for Q4, 2023 and €161 million for Q3, 2024. Full year EBITDA was €797 million compared to €909 million for 2023. The fourth quarter results were adversely impacted by non-cash inventory holding losses of approximately €41 million as a result of the large decline in raw material and product prices in the quarter.
Most markets saw improvements in volumes and average margins in the fourth quarter of 2024 compared to the same period in the prior year, whilst Asian markets continued to be weak with low margins in the quarter. In response to the challenging market conditions the Group has implemented and maintained 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 €23 million compared to €43 million in Q4, 2023. Full year EBITDA was €276 million compared to €200 million for 2023. Polymer sales and margins for durable products improved and sales increased in most of the focus industries in 2024 compared to the previous year. Polystyrene sales and margins were lower in EMEA due to soft demand and in the Americas due to the outage at the Channahon, USA site. Styrene sales and margins reduced as market supply was ample. The fourth quarter result included non-cash inventory holding losses of approximately €28 million (full year 2024: nil), compared to a gain of €7 million in Q4, 2023 (full year 2023: loss of €26 million).
INOVYN reported EBITDA of €102 million compared to €85 million in Q4, 2023. Full year EBITDA was €348 million compared to €589 million for 2023. The increase in EBITDA compared to Q4, 2023 was mainly the result of higher caustic soda volumes and prices as European chlor-alkali markets tightened due to a combination of planned and unplanned production outages. General purpose PVC margins in Europe remained at low levels due to weak demand, partly mitigated by the recent imposition by the EU of anti-dumping duties on imports from the US. Ample availability continued to depress prices and margins in export markets. Specialty PVC margins in domestic markets remained subdued but higher than pre-Covid levels, and volumes into export markets continued to be pushed to maximise plant operating rates. Energy prices were higher than the comparative quarter in the prior year.
Acetyls reported EBITDA of €5 million compared to €46 million in Q4, 2023. Full year EBITDA was €126 million compared to €108 million for 2023. Whilst Asian operating rates remained strong, an over supplied Chinese market meant domestic margins remained heavily subdued. Europe was impacted by rising energy and raw material prices. Margins held in the US, but weak demand led to lower sales volumes. The mothballing of the Atlas methanol plant in mid-September 2024 also contributed to a lower Q4, 2024 EBITDA.
Aromatics reported EBITDA of €2 million compared to €(25) million in Q4, 2023. Full year EBITDA was €47 million compared to €12 million for 2023. Sales volumes in Q4, 2024 increased by 24%, bringing the full year 2024 PTA sales volume growth to 18%. All regions reported double digit growth in both the final quarter and the full year. Revenues in Q4, 2024 were €12m higher compared to the prior year, with the gains in volumes more than offsetting the lower price environment. Similarly for the full year, revenues were up by 10% driven by increased volumes. Annual unit margins were flat year on year but Q4, 2024 maintained the recent trend of margin improvements, exceeding Q4, 2023 by 7%. Falling raw material prices resulted in inventory holding losses of €13m in the fourth quarter compared to €25m in the prior year. Full year 2024 inventory holding losses were €35m compared to prior year losses of €8m.
Net debt was approximately €5,664 million at December 31, 2024. Cash balances at the end of the quarter were €2,139 million. There was availability under undrawn securitization facilities of €542 million. Net debt leverage was approximately 7.1 times EBITDA at the end of December 2024.