Italian resin maker Versalis (Milan; www.versalis.eni.com) recorded an adjusted operating loss of EUR 70 mn in the second quarter following a profit of EUR 125 mn in the year-earlier period, according to its compatriot parent company Eni. It said the result was due to “exceptionally low demand across all business segments” and competitive pressures.

Eni added that earnings were also affected by market uncertainties and decisions by resellers to hold back purchasing.

The adjusted operating shortfall in the second quarter was below the EUR 109 mn loss reported for the first three months of this year.

In the first half of 2023, an adjusted operating loss of EUR 179 mn compared with a profit of EUR 10 mn in the same period of last year, the supplier said.

Eni CEO Adriano Alfani noted that the company’s Q2 sales of chemical products fell 24% on the year to 820,000 t due to lower demand and competitive pressure. In the first half, sales shrank 28% to 1.58 mn t. 

The second quarterly average plant utilisation rate fell to 55% from 69% a year ago, the firm reported, adding that its cracking margin decreased compared to the same period in 2022, with margins on polyethylene and styrenics declining due to weak commodity prices.

In April, Versalis, which holds 36% in Novamont, said it finalised an agreement to purchase the remaining 64% owned by Mater-Bi, with the closing of the transaction subject to customary steps.