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Billionaire Sir Jim Ratcliffe’s Ineos made £474m in profits from its oil and gas business last year after turmoil in the energy markets sent prices soaring.
Revenues at Ineos UK E&P Holdings, which operates and owns oil and gas fields in the North Sea, more than tripled in 2021 to £515m, according to its latest accounts. It swung into the black, making £474m in profits for the year, compared to a £226m loss a year earlier.
It said this was driven by the major rises in prices of oil and gas last year, as demand ballooned on the world reopening following Covid lockdowns. Last year, Ineos UK E&P said oil prices went from around $39 (£33) per barrel in 2020 to $72 per barrel last year, while gas prices rose from 25.2p per therm to 91p per therm.
Since then, prices have pushed even higher following Russia’s invasion of Ukraine and the ensuing sanctions on the country. Brent crude prices are up around 50pc this year, while wholesale gas prices have hit record highs.
Ineos did not respond to requests for comment.
Ineos UK E&P is part of Sir Jim Ratcliffe’s chemical empire, with products from that part of the business used in products including soaps to fabrics. Ineos is the fourth largest chemicals company in the world.
It has, however, been delving more into oil and gas in recent years to meet demand from its manufacturing plants. Earlier this year, Ineos struck a major deal to start supplying Europe with American liquified natural gas (LNG), in a move it said would provide “much needed security of supply” at a “critical time for energy markets”.
It comes amid accusations that Russia is restricting gas supplies to Europe, cutting flows through the Nord Stream 1 pipeline, to weaponise energy during its war in Ukraine.
Industry chiefs have voiced concern that European countries could be forced into energy rationing this winter, including Ben van Beurden, the boss of oil and gas giant Shell, who said it “will be a really tough winter in Europe”. “Some countries will fare better than others but we will all be facing a very significant escalation in energy prices.” Shell posted record profits of almost £9.5bn in the second quarter amid spiralling energy prices.
Ineos released its accounts as Sir Jim, who is Britain’s richest man, suggested he was considering buying Manchester United football club. Last week, a spokesman for the billionaire said he was “definitely interested buyers but can only buy something that’s for sale”. It comes amid speculation the US-based Glazer family could sell the club.
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