14 February 2011 18:12 [Source: ICIS news]
LONDON (ICIS)--INEOS' 2010 fourth-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) fell 8.2% to €270m ($365m) on squeezed European cracker margins, a port strike in France and a lightning strike in the US, INEOS said on Monday.
The Switzerland-headquatered company said it made an €82m refinery inventory holding gain in the quarter. The historical cost (HC) earnings were well down on the €402m reported for the third quarter of 2010.
Combined refining replacement cost (RC) EBITDA and chemicals historical cost EBITDA for the fourth quarter were €188m from €267m in the fourth quarter of 2009 and €406m in the third quarter of 2010, INEOS said.
INEOS reports RC/HC EBITDA to measure compliance with its debt covenants.
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The events resulted in lost EBITDA of about €36m from the Refining and the Olefins & Polymers (O&P) segments in
INEOS said its chemical intermediates businesses reported earnings up 29.2% at €186m. The acrylonitrile and phenol markets market had been tight and the oxide business benefitted from strong derivatives demand.
O&P Europe earnings were €5m from €54m in the equivalent period of 2009 although demand for olefins and polymers had been good.
O&P North America earnings were €33m from €68m.
Refining earnings were €46m on an historical cost basis compared with €28m. However, refining margins remained weak in the quarter and on a replacement cost basis the business reported a €36m loss compared with a €1m profit in the fourth quarter of 2009. PetroChina is currently considering a €1bn investment for a 50% share of the INEOS refining business.
Full year 2010 RC/HC EBITDA were €1.56bn from €985m in 2009, the company said. It did not report sales figures for the fourth quarter or the full year.
($1 = €0.74)
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