Trading Statements

INEOS QUATTRO HOLDINGS Ltd PRELIMINARY TRADING STATEMENT FOR Q3 2024

LYNDHURST – September 30, 2024

 INEOS Quattro Holdings Limited (“INEOS Quattro” or the “Group”) announces its preliminary trading performance for the third quarter of 2024.

Based on management’s preliminary analysis and certain estimates, management expects that the Group Adjusted EBITDA performance in the three months ending September 30, 2024 will generally be in line with the third quarter in the year ended December 31, 2023 and down compared to the three months ended June 30, 2024. In the three months ended September 30, 2023, Adjusted EBITDA was approximately €166 million and in the three months ended June 30, 2024, Adjusted EBITDA was approximately €244 million. Adjusted EBITDA for the three months ending September 30, 2024 has been driven primarily by (i) inventory revaluations in the Styrolution and Aromatics Businesses and (ii) outages of plants in the U.S. due to extreme weather conditions. Our Businesses are showing an overall performance that is broadly in line with the previous quarter across the various businesses with steady margins and volumes.

Our Styrolution Business is showing improvement in demand across regions, mainly driven by the ABS and Specialties businesses. Due to supply chain interruptions and higher freight costs, margins in the U.S. and Europe have improved, which helps to offset the arbitrage effects from Asia, where the market conditions remain challenging.

Our INOVYN Business is experiencing an uptick in volumes following lower U.S. imports, partly due to the implementation of anti-dumping duties, whereas margins are decreasing due to higher competition amongst EU producers. Management expects margins to improve in the future as a result of the rationalization of the level of competition.

Our Aromatics Business, albeit coming from a low base with respect to the EU and U.S. markets in the financial year ended December 31, 2023, is showing signs of improvement with higher volumes in all regions and margins slightly increasing compared to the third quarter in the previous fiscal year, with the U.S. market performing particularly well.

Our Acetyls Business is showing volume and margin improvements across the EU and U.S. markets. While the operating rates in Asia remain stable, the Chinese market continues to be challenging and impacts our margin.

The information as of and for the three months ending September 30, 2024 is based solely on preliminary internal information used by management. Our quarterly financial statements for the three-month period ending September 30, 2024 have not yet been prepared. This information is preliminary and based on a number of assumptions that are subject to inherent uncertainties and may change. It may not be indicative of the actual financial quarterly results or financial condition as of quarter-end and may not be indicative of any other period. 

This communication contains forward-looking statements, for more information, please see the section “Forward Looking Statements” on the next page.

Contact

For further information, please contact:

Dirk Arhelger

Head of Group Treasury & Investor Relations

Phone: +49 69 509550 1168

Email: Dirk.Arhelger@ineos.com

 

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of the U.S. securities laws and the laws of certain other jurisdictions, based on our current expectations and projections about future events, including but not limited to: the cyclical nature of our industries and their sensitivity to changes in capacity, demand and global economic factors; raw material availability and costs, as well as energy and supply arrangements, including arrangements with principal feedstock suppliers, and our ability to pass increases in raw material prices and other expenses on to our customers; operational and other industry risks, including the risk of environmental contamination; extreme weather and climate change driven physical impacts; the substitutability of other products for our products and regulatory initiatives that may create incentives for the use of substitute products; outbreaks of contagious diseases and the response (or lack of response) of governments thereto; wars and other armed conflicts; the highly competitive nature of our principal industries; business interruption risks resulting from the actions of third parties, including our joint ventures, and from extreme weather conditions, including droughts, and any governmental reaction thereto; demand levels in emerging markets and the ability of regional producers to satisfy such demand; our and our customers’ ability to borrow or raise capital; our ability to maintain key customer relationships; political, economic and legal risks associated with doing business in emerging markets; risks related to our increased manufacturing footprint in China; current or future environmental requirements, including those related to water quality and air emissions, and the related costs of maintaining compliance and addressing liabilities; government safety regulations and/or public perceptions regarding our products, including those that relate to the potential classification of styrene as a carcinogen; existing and proposed government regulations to address climate change by reducing greenhouse gas emissions; our ability to comply with anti-corruption laws, economic and trade sanctions or other similar regulations; the adequacy of our insurance coverage; currency fluctuations and economic downturns in the countries in which we operate; our ability to implement our business, cost control and growth strategies; our response to environmental, social and governance risks; our ability to keep up with technological innovation and the increasing trend toward digitalization of our industry; our ability to implement and commercialize recycling solutions in our business; our ability to maintain an effective system of internal controls; risks related to the destruction, ineffectiveness or obsolescence of our information systems; risks related to cyber security; our ability to retain key personnel and to attract highly-skilled individuals; our ability to consummate future acquisitions, integrate acquired businesses or achieve expected synergies from consummated acquisitions; the enforceability and validity of our intellectual property rights and the confidentiality of our proprietary information and trade secrets; risks related to litigation and other proceedings, including product liability claims; changes in tax laws or their application or increases in tax authorities’ scrutiny of transactions; our ability to make necessary contributions to pension plans; relationships with our workforce and service providers; our substantial indebtedness, which may affect our ability to service our outstanding indebtedness and operate our business; our ability to comply with the terms and conditions under our Securitization Programs; interest rate risks; and changes or uncertainty in respect of interest rate benchmarks.

All statements other than statements of historical facts included in this press release including, without limitation, statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations are based on current expectations and projections about future events and may be deemed to be “forward-looking statements.” These forward-looking statements are subject to a number of risks and uncertainties. Words such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “risk,” “should,” “will,” and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. The absence of such terminology does not necessarily mean that a statement is not forward-looking. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. In addition, from time to time we or our representatives, acting in respect of information provided by us, have made or may make forward-looking statements orally or in writing and these forward-looking statements may be included in but are not limited to press releases (including on our website), reports to our security holders and other communications. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which it is made and is not intended to give assurances as to future results. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. New risk factors emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.