Belgium's Ineos reports '99 EBITDA up 6.8% to Euro35.9m

06 April 2000 11:21  [Source: ICIS news]

LONDON (CNI)--Strong growth in intermediates sales enabled Belgium-based chemicals company Ineos to announce Thursday a 6.8% rise in earnings before interest, taxes, depreciation and amortisation (EBITDA) for last year.

Nadine Vebinnen, finance director, told CNI that the company's EBITDA result for 1999 increased to Euro35.9m ($34.1m) from Euro33.6m previously.

At the pre-tax level, Ineos' results statement showed profits had improved 2.0% to Euro20.0m on sales revenues 12.6% higher at Euro230.6m. Operating profits for the year to 31 December were up 6.2% to Euro29.0m.

Verbinnen told CNI that the group's star performer last year was the intermediates division, which benefited from a 22.4% capacity expansion to 300 000 tonne/year in ethylene oxide (EO) just as markets for the division's EO and glycol activities began to recover in H2. The intermediates division also benefited from the first-time, part-year consolidation of the former BP Amoco anti-freeze business, and it reaped efficiency benefits from catalyst upgrades.

She said that the intermediates division had a "strong year" and delivered EBITDA up 14.0% at Euro20.4m. Revenues were 14.9% higher at Euro139.5m.

However, despite an upturn in sales revenues of 9.2% to Euro91.1m for Ineos' specialties division, the business delivered a slight dip in EBITDA to Euro15.5m. The division did enjoy stronger results from its alkoxylates activities on the back of new products and capacity increases.

But the specialties division's services to third parties could only produce a "stable" performance. Despite an upturn in markets, Verbinnen said that the division's glycol ethers activities were restricted under Ineos' usage agreement with BP Amoco, which continues to own the plant.

By: Patrick Reynolds
+44 208 652 3214

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