INEOS Group's third-quarter operating earnings at its two main petrochemical businesses declined sequentially, according to trading updates released on 22 and 23 October. Pricing support linked to Middle East supply disruptions in the second quarter did not continue into the third quarter.
INEOS Group Holdings, which runs the North American and European olefins and polymers business, posted third-quarter EBITDA of EUR 703 million, down from EUR 1.13 billion in the prior quarter but up from EUR 375 million a year earlier. North American margins expanded on low ethane prices, while European markets were more balanced.
INEOS Quattro, covering Styrolution, Inovyn and the acetyls and aromatics businesses, reported EBITDA of EUR 162 million, down from EUR 407 million in the second quarter and EUR 177 million a year earlier. The company cited the return of low-cost Asian imports and elevated European energy prices.
Styrolution EBITDA fell to EUR 64 million from EUR 94 million a year earlier, with polymer demand down in all regions. Inovyn's chlor-vinyls EBITDA dropped to EUR 13 million from EUR 64 million on lower volumes and weak European demand.
Aromatics EBITDA reached EUR 45 million, reversing a year-earlier loss of EUR 8 million, helped by higher para-xylene contract prices and improved PTA/p-xylene spreads in China. INEOS also said European production was disadvantaged by uncompetitive gas prices, resulting in the idling of its acetic acid plants in Hull, UK.
