Ineos has reported a sharp rise in losses to $593 million as rising energy costs, supply chain disruptions and geopolitical tensions weigh heavily on Sir Jim Ratcliffe’s petrochemical empire.
The group, controlled by Jim Ratcliffe along with co-owners Andy Currie and John Reece, has also suspended its dividend for the second year in a row, underlining the financial pressures facing the company.
Pre-tax losses rose significantly from $71.1 million last year, while revenue fell from €16.2 billion to €14.3 billion. The downturn reflects a challenging operating environment for the European chemicals sector, where demand has weakened and costs have risen sharply.
Ineos directly pointed to escalating tensions in the Middle East as a key risk factor, warning that disruptions in global energy markets were already impacting operations.
The group highlighted Iran’s strategic location near the Strait of Hormuz, a key shipping route for oil and liquefied natural gas, and noted that a prolonged conflict could further destabilize supply chains and drive up commodity prices.
“Any escalation or expansion of hostilities could negatively impact global supply chains, commodity prices and macroeconomic conditions,” the company said in its annual report.
The rise in oil and gas prices has increased input costs across the petrochemical industry while also increasing shipping costs as companies adjust their logistics routes to avoid high-risk areas.
The effects are particularly acute in Europe, where Ineos has long been warning of structural challenges such as high energy prices, CO2 taxes and competitive pressure from foreign producers.
Earnings before special items in the region almost halved to 252.3 million euros in 2025, after 470.2 million euros in the previous year. Sales in the European business fell 9.2 percent, reflecting weaker demand and a decline in margins.
Ratcliffe has previously described the European chemical industry as facing “challenging market conditions” as rising regulatory costs and energy prices undermine competitiveness.
The group also faced logistical challenges related to global delivery disruptions. In recent years, Ineos has been forced to reroute supplies for its large Project One chemical plant in Belgium around the Cape of Good Hope, resulting in additional costs of more than 30 million euros.
The company warned that similar disruptions could occur again if tensions escalate, potentially delaying the completion of key projects and further increasing costs.
It also highlighted risks to the delivery schedule of a new plant in the Netherlands and cited ongoing volatility in energy markets.
Ineos ended the year with net debt of 11.7 billion euros, underscoring the extent of its financial liabilities at a time of declining profitability.
The decision to halt dividend payments reflects a focus on preserving liquidity and maintaining financial flexibility as the company manages an uncertain future outlook.
The findings highlight the pressures facing energy-intensive industries in Europe, where companies are struggling with a combination of high input costs, regulatory burdens and geopolitical instability.
For petrochemical manufacturers, dependence on oil and gas as both raw materials and energy sources makes them particularly vulnerable to price fluctuations.
Looking ahead, Ineos warned that continued volatility in energy markets could have a “significant” impact on the company’s operations and financial performance.
The trajectory of the Middle East conflict will be a crucial factor, as ongoing disruptions are likely to exacerbate cost pressures and delay investment projects.
For Ratcliffe’s group, the challenge is to balance investments in long-term growth with the need to manage short-term financial stress – a task made more complex by the increasingly uncertain global economic environment.
