Versalis losses persist as European chemicals market deteriorates

Rome – Eni's chemicals business, operated by Versalis, continued to report losses in the third quarter of 2026, as deteriorating market conditions offset the benefits of ongoing restructuring measures.

The business posted an adjusted proforma operating loss of €178 million, compared with €188 million in the third quarter of 2025 and €65 million in the preceding quarter.

In its 23 Oct results statement, Eni said the performance reflected a return to the "weak structural trends" that have affected the European chemicals industry for several years.

This followed a temporary recovery in the second quarter, driven by the market repercussions of the Strait of Hormuz crisis.

During the third quarter, Versalis faced “the rapid increase in the cost of oil-based feedstocks,” alongside higher energy and other plant operating expenses.

These increases, Eni said, could not be passed on through selling prices for commodity plastics, due to weak demand, unfavourable macroeconomic conditions and competition from producers with lower cost structures.

The pressures were compounded by global production overcapacity, with Eni reporting that product margins fell below the already depressed levels recorded in the third quarter of 2025.

However, the group said the negative market effects were absorbed by "optimisation measures and cost efficiencies" generated by its restructuring programme and plant closures carried out last year.

For the first nine months of 2026, Versalis reported an adjusted proforma operating loss of €401 million, a 35% improvement from the €615 million loss recorded in the corresponding period of 2025.

Chemical product sales volume totalled 600 kilotonnes in the third quarter, up 3% year-on-year, supported by increased production, particularly of polymers.

The improvement came despite the closure of the Brindisi and Priolo sites for restructuring and continued weak market demand.

For the nine-month period, chemical product sales declined 11% to 1.86 million tonnes, from 2.10 million tonnes a year earlier.

Versalis' plant utilisation rate fell to 43% during the third quarter, compared with 47% a year earlier and 57% in the second quarter.

For the nine months, however, utilisation averaged 53%, compared with 50% in the corresponding 2025 period.

Meanwhile, Eni said it was continuing to convert its main petrochemical sites at Brindisi and Priolo to new energy-related activities.

The group has permanently closed traditional petrochemical operations at the two sites, where industrial conversion and redevelopment plans are progressing.