INEOS Q4 2022 Earnings Set to Improve

London, United Kingdom: INEOS published its Q3 results for the year 2022 which had declined when compared with Q3, 2021. The revenues had been decreased from Euro 4996.3 million in Q3, 2022 to Euro 5,149.3 million in Q3, 2021. The subside in revenues was driven primarily by lower volumes, increase in crude oil prices, which has meant higher feedstock prices across the group during Q3, 2022 as compared to Q3, 2021. Energy prices were also notably higher, especially in Europe during Q3, 2022 when compared with the same quarter in 2021.

INEOS group reports under three business segments- Olefins and polymer (O&P) North America, Olefins and polymer (O&P) Europe and chemical intermediates. It has been reported in the company’s Q3 financial results that revenues from the chemical intermediates segment increased from Euro 2,508.6 million in the three-month period ended September 30, 2022, as compared to Euro 2,264.2 million for the same period in 2021. Total revenue from the chemical intermediate’s holds a greater part in company’s overall revenue than the combined input of other business segments into which Phenol (1,870Kilo Tonne) production capacity and Acetone (1,160K Tonne) production facilities spanning Europe and America add up efficient sales growth to the chemical intermediate, the net earning outcome from Phenol and Acetone adding growth to the sales of chemical intermediate segment which led to increase overall revenue of the company.

In chemical business segment, increasing demand of Phenol because of its major use in conversions to plastic or related material and starting material for a wide range of applications in the electrical/electronics, automotive, construction and household/furniture industries as well as demand for Acetone is also increasing in the market because it is used in the production of acrylics, polycarbonates and fine chemical intermediates. Moreover, INEOS sells Phenol and Acetone to consumers or vendors globally, including Olin, Covestro, Sabic, Fibrant, Hexion, Evonik, Roehm, Georgia Pacific, Radici, Arclin.

According to the prices of Phenol and Acetone listed on “ChemAnalyst”, the average price of Phenol for the year 2022 were assessed at 1790 USD/MT in Europe which was progressive than the year 2021 (1634.66 USD/MT) as the INEOS Phenol business revenues increased in the three-month period ended September 30, 2022, compared with the same period in 2021, driven primarily by higher prices because of increases in propylene and benzene feedstock prices. The average price of Acetone anticipate around 974.5 USD/MT for the year 2022 recorded lower than the year 2021 (1111.66 USD/MT annually) in the Europe region as sales volumes were curtailed in the three-month period ended September 30, 2022, as compared to the same period in 2021 due to lower market demand for acetone led to lower volumes, partly offset by higher cumene sales predominately in the European market.

The net earnings from Phenol accounted for 2.44 billion Euro in the year 2021 (Net earning= Average price of Phenol in USD/MT multiply by production capacity in K tonne multiply by 0.85 production efficiency multiply by 0.94 currency conversion factor) and for the year 2022 the net earnings anticipate around Euro 2.67 billion. As per the evaluation of past trends of average prices of Phenol and Acetone in 2021, 2022 and the net earnings from the production of Phenols and Acetone. “ChemAnalyst” evaluation anticipate that the company would achieve revenue growth in Q4, 2022. Parallelly the outcomes of quarterly results are expected to increase the stock prices of the company.