INEOS Faces Downturn, Slashes Profit Despite Antwerp Expansion Plans
INEOS, the global chemical company, is facing a challenging business environment. Despite a deepening downturn in the global chemicals industry, driven by China's rising exports and higher European energy costs, INEOS remains committed to its multibillion-euro ethylene plant in Antwerp, Belgium. The company has reported a significant drop in profits, prompting it to take measures to reduce debt and conserve cash.
INEOS, in collaboration with TotalEnergies, is investing in a new ethylene steam cracker plant in Antwerp. However, the company has recently announced a pre-tax loss of €42.9 million for the quarter ending 30 June, a stark contrast to the €291.8 million profit reported in the same period last year. This reversal is attributed to overcapacity in the chemicals market, new US tariffs, and falling prices, which have squeezed margins across INEOS's core businesses.
In response to these challenges, INEOS has implemented a company-wide hiring freeze to prioritize debt reduction. While recruitment has been frozen, the company will continue to fill essential positions to maintain its 24,000-strong global workforce. Additionally, INEOS has scaled back capital expenditure to conserve cash. Despite these measures, INEOS aims to bring its leverage down to three times earnings.
INEOS has also acquired assets worth around €2.7 billion across the US, Europe, and Asia between 2022 and 2024, demonstrating its commitment to growth and expansion despite the current challenges. Jim Ratcliffe, co-owner of Manchester United and founder of INEOS, has halted dividend payments to focus on reducing the company's €11.1 billion debt. As INEOS navigates this tough period, it remains committed to its long-term projects, such as the Antwerp ethylene plant, while taking necessary steps to strengthen its financial position.
Read also:
- Germany Launches HoLa Project for Megawatt Charging on A2 Motorway
- Wallenius Wilhelmsen Leads Maritime Industry's Push to Net Zero Emissions by 2027
- Transforming Digital Inventories in the Food Industry: A Comprehensive Guide for Food Businesses
- Canada's Transportation Revolution: Hyperloop & Electric Air Taxis by 2026
