Ineos Grangemouth losses double amid high gas prices

Losses at the Grangemouth chemicals plant in Scotland doubled last year, amid high gas prices and waning consumer demand.
The petrochemicals company Ineos, one of Britain’s largest private companies, owns the vast Grangemouth complex comprising the oil terminal, refinery and chemical plant on the Firth of Forth.
It produces a wide range of other chemicals, such as ethylene, propylene and synthetic ethanol, which are used in a variety of manufacturing and industrial processes.
Results from Ineos Grangemouth, the holding company that includes the chemical plant, show that the company reported a loss before tax of €688 million in the 12 months to December 31, significantly higher than the €298 million loss generated a year earlier.
In its accounts filed with Companies House, the group said it faced a number of challenges over the period including the impact of high inflation and higher energy prices as well as “reduced market demand as a result of weaker consumer confidence”.
The company said: “Demand for the business’s products declined as a result of reduced consumer demand and cheaper imports into Europe being available particularly from the US. These issues had a profound impact on the business due to the group’s high steam and power demand, resulting in significant exposure to natural gas prices.”
Sir Jim Ratcliffe founded Ineos, one of the world’s largest chemical companies, in 1998. The billionaire was fourth on this year’s Sunday Times Rich List with an estimated net worth of £23.519 billion. This year he fought off other bidders to secure a 27.7 per cent stake in Manchester United.
Last month Petroineos, a joint venture between Ratcliffe’s Ineos and PetroChina, confirmed that the Grangemouth refinery, which accounts for about 14 per cent of the UK’s overall refining capacity, will close next year with the loss of 400 jobs.
The decision has angered trade unions and politicians, with Unite calling the situation an “act of industrial vandalism”.
Petroineos, which plans to transform the site into an import and distribution fuel terminal, said that domestic demand for motor fuels would fall sharply with the forthcoming ban on new petrol and diesel cars. It also cited economic difficulties, stating that the company had invested $1.2 billion since 2011, but recorded losses in excess of $775 million over the same period.
The petrochemical operations at Grangemouth will not be directly affected by the decision.