Versalis hit by slowdown in demand, higher costs

Rome – Energy & petrochemicals major Eni has recorded a 32.8% year-on-year reduction on polymers & chemicals revenues to €2,152 million in 2023.

The parent of supplier Versalis linked the reverse to a 144-kilotonnes dip in sales volumes and 25.9% fall in average selling prices.

The sales decline included a 13.9% decline in sold volumes of elastomers, according to the Italian group’s 2023 annual report, issued 5 April.

In the elastomers arena, Eni noted sales of butadiene rubber down by 23.4%, nitrile rubbers down 16.8% and SBR down 6.1%. Average unit prices decreased by 18.9%.

Overall polymer production decreased by 11.5% year-on-year to 1,658 kilotonnes – including a 16.2% decline in elastomers production.

Reviewing the performance of Versalis in 2023, Eni said the business posted an adjusted operating loss of €614 million – compared to a loss of €254 million in 2022.

Losses at the polymers & chemicals unit were linked mainly to a "slowdown in the macro-environment" and comparatively higher energy-related production costs in Europe.

Versalis was the world's ninth largest synthetic rubber producer in 2022 with an annual capacity of 683 kilotonnes, figures issued last year by the International Institute of Synthetic Rubber Producers show.