A surge in oil and gas earnings in a major division of Sir Jim Ratcliffe’s Ineos empire has masked a sharp deterioration in its chemicals portfolio and widening losses in its carmaking arm.
Ineos Industries, which operates several of the conglomerate’s petrochemicals businesses as well as its energy and automotive companies, reported a pre-tax loss of €2.2bn last year, according to accounts posted on UK Companies House.
The division makes up around a third of total revenues at chemicals conglomerate Ineos, which was built up from purchases of distressed assets by Ratcliffe. Despite a downturn in the chemicals industry in recent years — Ineos Industries posted losses of €2bn in 2024 — he has remained a staunch supporter of the sector.
Revenues last year dropped 10 per cent to €15bn in Ineos Industries’ petrochemicals business, which has been battered by high energy costs, competition from Asian imports into Europe and weak demand. Adjusted earnings in the division fell by a quarter to €622mn.
That was offset, however, by improved earnings from Ineos Industries’ energy division, which includes offshore oil and gas production in the UK and US, with a rise of 41 per cent to €935mn last year.
The figures underline the dire state of Europe’s chemicals industry. Ineos said last month that it would idle three of its UK plants due to “ridiculously high” energy prices, pointing out that the price of gas in Europe was in some cases up to 12 times that of the US.
Ineos Industries said its commodity chemicals division Inovyn, which produces basic industrial chemicals and PVC, had been hit by “strong competitive pressure from Asian imports” and low demand for products such as caustic soda in Europe.
James Hooper, a senior analyst covering European chemicals at Bernstein, estimated that as much as 9 per cent of European chemicals production could close “in the next few years”.
While oil majors have increasingly turned to petrochemicals as a source of future growth, Ineos has expanded its offshore oil and gas assets, particularly in the US, where it bought a 21 per cent stake in a Shell project in the Gulf of Mexico this year.
Ratcliffe, whose sprawling conglomerate also includes fashion, cars and ownership of sports teams such as Manchester United, has long been a vociferous critic of Europe’s green agenda and the impact it has on investor sentiment, although the company is in the process of making a €4.8bn investment in a plant in Antwerp.
Other parts of the business outside of Ineos Industries include its sports holdings, other chemicals divisions and its shipping arm.
Over the past year, bond investors have raised concerns about Ineos’ heavy debt position and the sprawling nature of the Ineos empire. Ineos Industries ended 2025 with €8.4bn of external borrowings, alongside a further €8.8bn owed to “related parties”.
It was also hit by a €333.5mn impairment charge on development costs in its automotive division, which produces the Grenadier 4x4. It had been planning to launch a smaller electric and hybrid SUV called the Fusilier but has been forced to delay the project.
Ineos said that its car division had a “hugely challenging year” in large part thanks to the imposition of US tariffs. It said that Ineos Industries had delivered a “resilient performance” in 2025 “despite some of the most challenging conditions European manufacturing has faced in decades”.
“While conditions remain difficult, particularly for manufacturing businesses exposed to high energy costs and carbon taxation, Ineos continues to invest for the long term,” it said.