MOSCOW (MRC) -- INEOS Group Holdings S.A.announces its trading performance for the second quarter of 2014, said the producer in its press release.
Based on unaudited management information INEOS reports that EBITDA for the second quarter of 2014 was EUR447 million, compared to EUR365 million for Q2, 2013 and EUR401 million for Q1, 2014.
North American markets have continued to be strong, taking full benefit from their current feedstock advantage. Market conditions in Europe have shown further signs of improvement in the quarter. In contrast, markets in Asia have generally remained soft.
O&P North America reported EBITDA of EUR236 million compared to EUR221 million in Q2, 2013. The business has continued to benefit from its flexibility to be able to utilise cheaper NGL feedstocks to maintain healthy margins. The US cracker business environment was strong with top of cycle margins and high operating rates throughout the quarter. Polymer demand was very robust, with tight markets and high margins supported by an improving US economy.
Chemical Intermediates reported EBITDA of EUR132 million compared to EUR104 million in Q2, 2013.
O&P Europe reported EBITDA of EUR79 million compared to EUR40 million in Q2, 2013. Demand for olefins in the quarter was balanced, with industry cracker operating rates remaining trimmed. Margins were relatively steady in the quarter, with a solid aromatics performance offset by weak butadiene margins. Polymer demand was firm with good volumes and stable margins in the quarter. The partial closure of the cracker in Lavera during Q2, 2013 adversely impacted the results for that quarter. The results for Q2, 2013 were also adversely impacted by the poor performance at O&P UK. The Group disposed of the O&P UK business on October 1, 2013.
The Group has continued to focus on cash management and liquidity. Net debt was approximately EUR6.2 billion at the end of June 2014. Cash balances at the end of the quarter were EUR1,087 million, and availability under undrawn working capital facilities was EUR271 million. Net debt leverage was approximately 4.0 times as at the end of June 2014.
As MRC wrote before, Solvay SA and Ineos Group AG have given a name to their chlorovinyls joint venture, Inovyn, as the two firms prepare the launch the company by the end of 2014. The new company will officially open following divestments by both companies required by the European Commission. Until completion, Solvay and Ineos will continue to run their businesses separately.
INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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