Ineos, the petrochemicals group controlled by Sir Jim Ratcliffe, has reported a steep widening of losses to $593 million, as rising energy prices, supply chain disruptions, and geopolitical instability weigh heavily on its business. The company has also suspended its dividend for the second consecutive year, reflecting mounting financial pressures.
Pre-tax losses jumped from $71.1 million the previous year, while revenues fell to €14.3 billion from €16.2 billion. The downturn comes amid weakening demand across Europe’s chemicals sector, where rising input costs and regulatory pressures have strained margins.
Ineos highlighted the ongoing tensions in the Middle East as a key risk factor. The company cited Iran’s strategic position near the Strait of Hormuz, a critical route for oil and liquefied natural gas shipments, warning that prolonged conflict could further disrupt global supply chains and push commodity prices higher. The surge in oil and gas costs has already increased production and shipping expenses, particularly in Europe.
Earnings before exceptional items in the European division fell to €252.3 million in 2025, down from €470.2 million the previous year. Revenue in the region declined by 9.2%, reflecting weaker demand and compressed margins. Ratcliffe has previously described the European chemicals market as facing “challenging conditions,” with high energy costs, carbon taxes, and competition from overseas producers weighing on profitability.
Logistical challenges have also added to the group’s difficulties. Ineos noted that shipping disruptions in recent years forced the rerouting of shipments for its major Project One chemicals plant in Belgium around the Cape of Good Hope, adding more than €30 million in costs. Similar disruptions could arise if Middle East tensions escalate, potentially delaying key projects and increasing expenses. The company also flagged risks to the timeline of a new plant in the Netherlands amid ongoing energy market volatility.
Ineos ended 2025 with net debt of €11.7 billion, highlighting the scale of its financial commitments as profitability declines. The decision to suspend dividends underscores a focus on preserving cash and maintaining flexibility in a challenging environment.
The company warned that energy market volatility could continue to significantly affect operations and financial performance. The trajectory of the Middle East conflict will be a key determinant, with prolonged disruption likely to drive up costs and delay investment projects.
For Ratcliffe’s group, balancing investment in long-term growth with the need to manage short-term financial strain remains a pressing challenge. As European petrochemical producers face a combination of high input costs, regulatory pressures, and geopolitical uncertainty, Ineos’ latest results underline the vulnerability of energy-intensive industries in the current global economic environment.
