Rise in PVC cost fuels strong performance
RUNCORN chemical giants Inovyn turned a profit in 2016 more than cancelling out losses in 2015.
The firm, part of Ineos, achieved a surplus of €73.9m in 2016, equivalent to about £63m under December exchange rates.
This was up from a loss of €65.8m – approximately £56m in 2015.
Revenues rocketed, from €1.62bn in 2015, to €2.85bn in 2016.
Inovyn paid out an interim dividend of €17.5m, equivalent to £14.1m in 2016 with no final dividend.
This was down from the whopping €230m dividend shelled out in 2015 as part of a deal to divest a shareholding in Ineos Enterprises Group Holdings ( Jersey) Ltd.
Inovyn’s annual report and financial statements for the year ending December 31, 2016, were published by Companies House on April 21.
A trading statement on the company’s website said the ‘strong’ performance was in part down to rises in the costs of caustic soda and PVC.
Sales volumes were slightly up.
The statement added that earnings before interest, tax, depreciation and amortisation (EBIDTA) hit a quarterly record level in the first quarter of 2017, climbing to €142m, compared to €116m for 2016. also ●
It said: “This represents a quarterly record, and compares to €116m for the same period last year.
“On a last 12-month basis, EBITDA now stands at €482m.
“The strong financial perfor- mance is a result of healthy market conditions, underpinned by a synergy programme that is delivering significant financial benefits.
“Capex (capital expenditure) for the first quarter of 2017 was €33m.
“Total sales volumes were up slightly compared to the same period last year and were significantly higher than the previous quarter, which was negatively impacted by the turnaround activity at our Rafnes cellroom and VCM (vinyl chloride monomer) plant during October and November 2016.
“Our specialty PVC portfolio continues to grow.”