Ineos Group reported a net profit of €25.9 million ($30.5 million) for the second quarter of 2020, declining by almost 90% from the same quarter last year. The profit decrease was mostly attributed to a €1.1 billion to €2.47 billion ($1.3 billion to $2.9 billion) fall in sales, driven primarily by lower prices across the group’s portfolio. This is despite a less severe year-on-year decline of 3% in sales volumes. Ineos’ EBITDA for the second quarter was down 48% year-on-year to €260 million ($305.6 million).
The company’s olefins & polymers (O&P) North America business reported a more than 23% year-on-year decline in Q2 sales to €599 million ($704.2 million) due to lower prices. This resulted in EBITDA of €103 million ($121.1 million), compared to €189 million EBITDA a year earlier. This is despite a 4% year-on-year increase in sales volumes, mostly driven by a rise in PP and olefins sales volumes.
Ineos’ O&P Europe business posted a 37% year-on-year decrease in Q2 sales to €991 million ($1.2 billion) mostly due to lower prices. This resulted in a 70% year-on-year plunge in EBITDA to €45 million ($52.9 million). The segment also reported inventory holding losses of €68 million ($79.9 million) as prices of naphtha fell significantly. Ineos said polymer demand in Europe was balanced in the period, but prices turned lower, particularly in the automotive and construction markets.
The chemical intermediates business posted an EBITDA decrease of 30% year-on-year to €112 million ($131.6 million). The segment’s sales fell by over 32% year-on-year to €1.13 billion ($1.32 billion). Sales volumes declined by approximately 16% year-on-year, reflecting lower sales of linear alpha-olefins (LAO) and polyalphaolefin (PAO) low viscosity products.
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Published on August 12, 2020 4:45 PM (GMT+8)Last Updated on September 9, 2020 3:59 PM (GMT+8)
