INEOS Quattro - comment

Ineos Quattro released its Q4 trading statement, confirming the previously rumoured liquidity measures. The group has extended its trade receivables securitisation programme to January 2029, providing €790m of liquidity, which is currently fully drawn. In addition, Ineos Quattro has entered into two new inventory monetisation agreements expected to generate approximately €300m of additional liquidity through to January 2028. It remains unclear how these facilities interact with, or potentially constrain, availability under the existing securitisation programme. The group has also secured a commitment from shareholders for a further €200m of equity funding.

While management continues to express confidence in a medium-term recovery in the chemicals cycle and maintains that available liquidity is sufficient to address the January 2027 maturities, underlying operating performance remains weak. Full financials were not disclosed; headline figures indicate leverage has increased to 7.7x, with Q4 EBITDA declining by 50% year-on-year to €77m. Net debt stood at approximately €5.5bn, marginally better than our expectations, largely reflecting higher cash balances of around €1.7bn.