Jim Ratcliffe’s petrochemical company Ineos reports record profits of £3.7bn for last year
Britain's biggest privately owned firm announced record profits last year, bolstered by low oil prices.
The chemicals company run by Jim Ratcliffe reported underlying profits of €4.3bn (£3.7bn) for 2016, up from €4bn the year before.
Pre-tax profits rose to about €3bn. The company, which is comprised of 27 businesses, is also repaying €1.2bn from its cash resources.
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Ratcliffe said: "These figures confirm that Ineos is doing better than ever. All the businesses are performing well and our successful refinancing shows that the market is clearly recognising this fact”.
Ineos recently closed its latest debt financing and repricing, which included raising €1.4bn of new loans and repricing €3bn of existing debt. The firm said the new borrowing will save the group over €100m a year and were oversubscribed by 50 per cent.
The borrowing includes a "step down" facility, when the repayment costs will be reduced if the firm meets specific financial targets.
Ratcliffe founded the company back in 1998 and has since overseen its ascent to become one of the world's biggest chemicals companies. He said it's also "a unique business" – set up 18 years ago but has never floated. "It's a tribute to everyone involved – owners, management and staff – that it is now doing so well," Ratcliffe added.
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He moved back to the UK last year, six years after relocating to Switzerland. At the time, the Ineos boss said the move was "encouraged" by the tax cuts of former chancellor George Osborne, but said it was "mainly for business reasons". UK shale gas has been a big focus for the company.
And last week, the Ineos boss outlined plans for a new 4×4 in the style of the discontinued Land Rover Defender. Ratcliffe said he wants to build "the world's purest 4×4", aimed at explorers, farmers and "off-road enthusiasts" around the world.
After completing a six-month feasibility study, Ineos said it will spend "hundreds of millions" to make Ratcliffe's idea a reality as the firm moves into a new sector.