Ineos has reported a sharp widening in losses to $593 million, as rising energy costs, supply chain disruption and geopolitical tensions weigh heavily on Sir Jim Ratcliffe’s petrochemicals empire.
The group, controlled by Jim Ratcliffe alongside co-owners Andy Currie and John Reece, has also suspended its dividend for a second consecutive year, underscoring the financial pressure facing the business.
Losses before tax increased significantly from $71.1 million the previous year, while revenues declined to €14.3 billion from €16.2 billion. The downturn reflects a challenging operating environment for the European chemicals sector, where demand has weakened and costs have risen sharply.
Ineos pointed directly to the escalation of tensions in the Middle East as a key risk factor, warning that disruption to global energy markets is already impacting operations.
The group highlighted Iran’s strategic position near the Strait of Hormuz, a critical shipping route for oil and liquefied natural gas, noting that any prolonged conflict could further destabilise supply chains and drive up commodity prices.
“Any escalation or expansion of hostilities could adversely affect global supply chains, commodity prices and macroeconomic conditions,” the company said in its annual report.
The surge in oil and gas prices has increased input costs across the petrochemicals industry, while also raising shipping expenses as companies adjust logistics routes to avoid high-risk areas.
The impact has been particularly acute in Europe, where Ineos has long warned of structural challenges including high energy prices, carbon taxes and competitive pressures from overseas producers.
Earnings before exceptional items in the region almost halved to €252.3 million in 2025, down from €470.2 million the previous year. Revenues in the European business fell by 9.2 per cent, reflecting weaker demand and margin compression.
Ratcliffe has previously described the European chemicals industry as facing “challenging market conditions”, with rising regulatory costs and energy prices eroding competitiveness.
The group has also been hit by logistical challenges linked to global shipping disruptions. In previous years, Ineos was forced to reroute shipments for its major Project One chemicals plant in Belgium around the Cape of Good Hope, adding more than €30 million in costs.
The company warned that similar disruptions could occur again if tensions escalate, potentially delaying the completion of key projects and further increasing expenses.
It also flagged risks to the delivery timeline of a new plant in the Netherlands, citing ongoing volatility in energy markets.
Ineos ended the year with net debt of €11.7 billion, highlighting the scale of its financial commitments at a time of declining profitability.
The decision to halt dividend payments reflects a focus on preserving cash and maintaining financial flexibility as the company navigates an uncertain outlook.
The results underline the pressures facing energy-intensive industries in Europe, where companies are grappling with a combination of high input costs, regulatory burdens and geopolitical instability.
For petrochemical producers, the reliance on oil and gas as both feedstock and energy source makes them particularly sensitive to price fluctuations.
Looking ahead, Ineos warned that continued volatility in energy markets could have a “significant” impact on its operations and financial performance.
The trajectory of the Middle East conflict will be a key factor, with prolonged disruption likely to exacerbate cost pressures and delay investment projects.
For Ratcliffe’s group, the challenge will be balancing investment in long-term growth with the need to manage short-term financial strain — a task made more complex by the increasingly uncertain global economic environment.
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Ineos losses widen to $593m as Ratcliffe halts dividend amid energy turmoil
