Petrochemical giant Ineos (Rolle / Switzerland; www.ineos.com) has said that poor performance in its Olefins and Polyolefins Europe (O&P Europe) business contributed to a 11.5% year-on-year fall in operating profit (EBITDA) to EUR 1.52 bn in 2012. In an unaudited report, the company said that operating profit in the fourth quarter of 2012 was EUR 311m, compared to EUR 190m in the same period in 2011.

The O&P Europe business reported an operating profit of EUR 122m for the full year, down from EUR 360m in 2011. The result was hit by the effects of a gas leak in the Elgin gas field in the North Sea in March 2012. The field remained closed throughout the year, forcing the business to utilise more expensive imported feedstocks for its gas cracker in Grangemouth / UK, impacting the result by EUR 45m for the full year and EUR 23m in the fourth quarter, which recorded a EUR 45m loss. The fourth quarter was further affected by weak demand for olefins and relatively low cracker operating rates. In addition, there was a fire on a compressor at the company’s cracker in Lavera / France, which impacted results by EUR 6m in the quarter – see Plasteurope.com of 06.09.2012.

O&P North America reported an operating profit of 706m for 2012, a year-on-year increase of 48%. Fourth quarter operating profit was EUR 197m, compared to EUR 46m in the final quarter of 2011. Profitability benefited from the availability of cheap shale gas and the optimisation of use of NGL feedstocks to maintain margins.

The chemical intermediates business reported 2012 operating profit down 21% year-on-year at EUR 688m. Fourth quarter operating profit was EUR 159m compared to EUR 155m in the fourth quarter of 2011.