Orion Engineered Carbons S.A. Stock Price, News & Analysis

Orion Engineered Carbons (NYSE: OEC) reported strong financial results for Q2 2021, achieving net sales of $401.0 million, up $198.4 million year over year. Net income soared to $89.1 million, a remarkable turnaround from a loss of $17.8 million in Q2 2020. Adjusted EBITDA reached $78.8 million, marking a fourfold increase compared to the previous year. The company also settled a long-standing dispute with Evonik, receiving $79.5 million. With an optimistic outlook, adjusted EBITDA guidance has been raised to $265 million to $285 million for the year, despite expected seasonal impacts.

Orion Engineered Carbons S.A. (NYSE: OEC) has entered a partnership with RISE Research Institutes of Sweden to develop renewable carbon black, aiming for climate-neutral production. This initiative will replace traditional carbon black feedstock with pyrolysis oil derived from biomass. Orion will utilize its furnace reactor in Germany to convert biomass oil, while RISE will test sustainable heat sources like electrofuels in Sweden. This project aligns with the tire industry's goal to reduce fossil feedstocks, enhancing sustainability in production.

Orion Engineered Carbons (NYSE: OEC) has joined the HiQ-CARB consortium to develop sustainable carbon additives for the lithium-ion battery industry. This collaboration includes seven prominent European companies and research institutions, aiming to create innovative battery materials with minimal carbon footprints. Orion's acetylene black is highlighted for its superior conductivity and low carbon impact, crucial for enhancing battery performance across various applications. This effort aligns with the European Commission's goal of achieving carbon neutrality by 2050.

Orion Engineered Carbons (NYSE: OEC) will release its second quarter 2021 results after market close on August 5, 2021. A conference call will follow on August 6, 2021, at 8:30 a.m. EDT. Investors can participate by dialing in or accessing a replay through August 13, 2021. The company specializes in carbon black products used in various applications including tires, coatings, and plastics, and emphasizes sustainability and innovation across its 14 global production sites.

Orion Engineered Carbons S.A. (NYSE: OEC) has announced a price increase for all rubber carbon black products in the EMEA region, effective August 1, 2021. The average increase will be €110 per ton, driven by rising operational, logistics, and environmental costs. Additionally, adjustments will be made to service surcharges and payment terms. This decision aims to ensure the company's reliability as a long-term supplier of high-quality products and services while adhering to sustainable manufacturing practices.

Orion Engineered Carbons (NYSE: OEC) has settled arbitration proceedings with Evonik Industries AG, resolving claims related to the U.S. Clean Air Act. Evonik will pay €66.55 million (approx. $79.3 million) to Orion, settling disputes over indemnity claims from the 2011 acquisition of Orion's carbon black business. The settlement concludes a nearly decade-long legal issue arising from historical environmental violations. This agreement also allows Orion to move forward without ongoing legal entanglements.

Orion Engineered Carbons (NYSE: OEC) has launched ECORAX® Nature, a new range of carbon black products for rubber applications, made from renewable plant-based oils. ECORAX® Nature 100, the first grade designed for tire tread construction, is currently being tested by customers and is expected to enter high-volume production in H2 2022. This initiative aims to reduce CO2 emissions in the tire supply chain, aligning with Orion's sustainability strategy. The product reflects the company's commitment to reliability and innovation in carbon black manufacturing.

Orion Engineered Carbons (NYSE: OEC) has received 12 awards from the International Carbon Black Association (ICBA) for its exemplary safety performance across its global operations in 2020. The recognition highlights Orion's commitment to safety, sustainability, and responsible business practices. The company operates 14 production sites and four R&D centers worldwide, maintaining robust safety systems and fostering a strong safety culture through training and reporting. This commitment to safety reflects Orion's core values and dedication to the well-being of its employees and surrounding communities.