July 29, 2026 15:25

Versalis, the chemicals arm of the Eni Group, closed the second quarter of 2026 with a pro forma adjusted operating loss (EBIT) of €65 million, compared with €184 million in the same period last year, narrowing its loss by 65%.
The result consolidates the recovery already recorded in the first three months of the year, when the loss stood at €158 million.

Overall, first-half losses amounted to €223 million, almost half the €427 million recorded in the first half of 2025.

According to the Italian group, the improvement was attributable to the benefits of the chemicals restructuring plan and the plant closures carried out in the previous financial year.
A significant contribution also came from a temporary recovery in margins in some segments, particularly polyethylene, supported by reduced product availability caused by supply disruptions linked to the crisis in the Middle East.

The effect proved short-lived, however. In July, the polyethylene spread returned to unprofitable territory, confirming the persistent weakness of market fundamentals.

Sales of chemical products fell to 610,000 tonnes in the second quarter, from 720,000 tonnes in the same period of 2025, a decline of 15%.
In the first half, volumes amounted to 1.26 million tonnes, 17% below the 1.52 million tonnes recorded in 2025.

Despite the decline in sales, the plant utilisation rate increased from 47% to 57% during the quarter, while in the first half it rose from 51% to 58%, also reflecting the new production footprint resulting from the plant closures.

The overall picture for the European chemicals industry nevertheless remains depressed, the Italian group noted in its financial results presentation. Selling prices for commodity plastics failed to keep pace with the rapid increase in the cost of oil-based feedstocks, energy and plant operations.

The sector continues to be affected by weak demand, the difficult European economic environment and competition from producers with more efficient cost structures. The temporary improvement in the polyethylene spread was the only exception in a market characterised by weak margins across all major segments.

Speaking during the investor call, Versalis CEO Adriano Alfani (pictured) said the improvement in market conditions was mainly due to a shortage of product caused by the closure of the Strait of Hormuz, rather than an increase in demand. “For six to eight weeks, we did not see any imports from the Middle East, but after eight weeks, we saw an increase in imports from the U.S. Whatever volumes were no longer coming from the Middle East have therefore been replaced, so we are now back to where we started”. 
“We expect to continue to improve performance through our transformation strategy, with progress on a yearly basis also in the coming years,” he added.

The losses generated by the chemicals business were compounded by those from the Sites in Transformation activities, which are responsible for restructuring, environmental remediation, decommissioning and preparing former petrochemical sites for conversion, particularly at Brindisi and Priolo. In the second quarter, these activities generated a pro forma adjusted operating loss of €55 million, bringing the first-half loss to €143 million.

At the Priolo site in Sicily, a dedicated special-purpose vehicle was established to build a biorefinery, which will be complemented by a post-consumer plastics chemical recycling plant based on proprietary technology.

At Brindisi, construction began on a facility for the production of lithium iron phosphate batteries, mainly intended for utility-scale stationary electricity storage systems. The project is part of an agreement between Eni Industrial Evolution and FIB, a Seri Industrial Group company.

In the first half of 2026, capital expenditure in the chemicals business amounted to €44 million, compared with €82 million in the previous year, a decrease of 46%. The funds were mainly allocated to circular economy initiatives and asset safety and integrity.

© Polimerica -  Reproduction prohibited, all rights reserved