Is Ineos in financial woes?

[BradS1]

Donald Duck confidently stated 3 days ago Iran would attack Israel.
He heard a rumour...and stoked another fake fire

This didn't age well. LOL

 

[AWo]

The UK Telegraph states that JR is threatening Scottland (or the UK) to close the site in Grangemouth completely incl. the loss of jobs.

AWo

 

[Tazzieman]

The UK Telegraph states that JR is threatening Scottland (or the UK) to close the site in Grangemouth completely incl. the loss of jobs.

AWo

It was in the news in March. Losing $500,000/year; not exactly viable.
Grangemouth closure

 

[Shopkeep]

It was in the news in March. Losing $500,000/year; not exactly viable.
Grangemouth closure

The article says it’s $500,000 daily!

 

[AWo]

Yes, but that was about the Petroineos stuff in March and April.

Now it's about the rest, the O&P (Olimers and Polymers) plant, about another 2,000 jobs. The biggest chemical plant in the UK left.

AWo

 

[scottyboy436]

Grange mouth closing is all down to the UK governments hate for oil and gas , just becoming unviable for companies like ineos to stay here

 

[TD5-90]

Grange mouth closing is all down to the UK governments hate for oil and gas , just becoming unviable for companies like ineos to stay here

"When will they ever learn?" Never, I'm afraid... The Chinese will be happy!

 

[Baron von Teuchter]

In fairness to Ineos they bought it from BP who were planning on closing it 20 years ago. It’s ancient and like most downstream facilities run on a shoestring. Just ticking along, if it’s losing money for a company like Ineos (who are very lean compared to the majors) then it’s surely not viable for anyone else.

 

[Zimm]

In fairness to Ineos they bought it from BP who were planning on closing it 20 years ago. It’s ancient and like most downstream facilities run on a shoestring. Just ticking along, if it’s losing money for a company like Ineos (who are very lean compared to the majors) then it’s surely not viable for anyone else.

Apparently you didn’t get the memo. When an ancient plant closes, it’s always about greedy unions and burdensome regulations, and never about owners and managers pulling huge profits and bonuses for decades without putting any money back into maintaining and updating the place.

 

[Baron von Teuchter]

I can’t speak for Ineos but all the “traditional” oil companies I’ve worked with separate their upstream and downstream business for exactly this reason. Upstream is the sexy glamorous side that makes a metric shit load of cash. Downstream is the fat ugly sister that takes loads of maintenance and contributes fkall in cashflow. It becomes easy to plead poverty when a refinery is making a loss - and it’s easy to sell the crude to somebody else and let them refine it then retail it. The profit is in the crude and trading of it.

 

[AWo]

Rating Agency Fitch downgraded Ineos the second time this year from BB to BB-. Money has become more expensive to Ineos by that downgrade again. Main driver is the Project One called new cracker in Antwerp, which increased the Ineos debts by €4 bn.

The UK Telegraph also mentioned what I was already stating here, the chemical buisness payed for Mr. Ratcliffes other interests (beside the chemical business), incl. the Ineos Grenadier, which are mainly lossmaking.

Ineos Enterprise wa salso downrated to B+ because of Ineos selling single business, weakening the business.

AWo

 

[Bluesurf]

The Economic and Political System in the UK and EU are going to cause headwinds and worse for INEOS and many other companies. The legacy car manufacturers will survive by shrinking with the situation that ultimately plays out. I watch every morning two podcasts from the UK and they speak of the EU as well, its very concerning. However with INEOS, survival is going to be much more difficult. INEOS will need a lot of cash on hand. The sale of Bellstaff got my attention.