OREANDA-NEWS. Based on unaudited management information INEOS reports that EBITDA for the second quarter of 2016 was €570 million, compared to a record €610 million for Q2, 2015 and €554 million for Q1, 2016.

North American markets have continued to be strong, taking full benefit from their current feedstock advantage. Market conditions in Europe have remained good, supported by the continued weakness of the Euro. In contrast, markets in Asia have been somewhat weaker. There have been a large number of turnarounds in the industry across all segments during the quarter, which has had a significant impact on the supply side.

O&P North America reported EBITDA of €225 million, compared to €281 million in Q2, 2015. The business has continued to benefit from its flexibility to be able to utilise cheaper NGL feedstocks to maintain healthy margins. Both ethane and propane have continued to be advantaged feedstocks. The US cracker business environment was solid with healthy margins and high operating rates throughout the quarter. One of the cracker units at Chocolate Bayou was in a scheduled turnaround for most of the quarter. Polymer demand was very strong, particularly polypropylene and polyethylene, with tight markets and high margins.

O&P Europe reported EBITDA of €190 million compared to €158 million in Q2, 2015. Demand for olefins in the quarter was solid in a tight market with top of cycle margins. European polymer demand was strong in a balanced market, with solid volumes and high margins in the quarter. The inclusion of the full results of the Noretyl cracker at Rafnes, Norway (acquired on July 1, 2015) also had a beneficial impact on the performance for the quarter.

Chemical Intermediates reported EBITDA of €155 million compared to €171 million in Q2, 2015. Market demand in North America and Europe remained firm for most of the businesses, but was weak in Asia, where overcapacity has negatively affected earnings. All of the businesses were impacted by scheduled turnarounds at a number of their sites in the quarter. The overall demand trend in the Oligomers business was strong in most product sectors and markets, most notably in the polymer co-monomer segment, supporting the strong polymer markets.