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

Orion Engineered Carbons (NYSE: OEC) announced a 20% price increase for all rubber carbon black products in Europe and the Americas, effective from August 1, 2022. The company cites rising manufacturing costs, including investments in environmental controls and operating expenses, as reasons for this adjustment. Additionally, payment terms will be reduced by at least 50% to align with updated regional standards. This strategy aims to maintain stable supply reliability amidst increasing feedstock costs, according to CEO Corning Painter.

Orion Engineered Carbons (NYSE: OEC) hosted its 2022 Investor Day in New York, where CEO Corning Painter outlined the company's growth strategy and financial targets. Key themes included accelerating growth, investing in higher margin opportunities, and enhancing its innovation and sustainability leadership. Orion aims for a mid-cycle Adjusted EBITDA capacity of ~$500 million by 2025, with cumulative discretionary free cash flow of ~$700 million to ~$800 million from 2023-2025. The event was webcasted live for investors and stakeholders.

Orion Engineered Carbons (NYSE: OEC) has expanded its revolving credit facility by 100 million EUR, bringing the total to 350 million EUR. This decision comes amid global energy market volatility, with the CFO stating it ensures working capital needs for oil prices up to $200 per barrel. The facility's expansion was completed under similar terms as before and attracted two new global lenders, indicating strong confidence in Orion's future prospects.

Orion Engineered Carbons (NYSE: OEC) has announced the completion of its gas black expansion in Germany, specifically at its Dortmund and Cologne plants, expected by early 2023. As the only carbon black producer with gas black capabilities, Orion aims to strengthen its premium specialty market leadership amidst continuous high demand for gas blacks, utilized in coatings and printing inks. This expansion aligns with the company's commitment to innovation and meeting customer needs in high-performance applications.

Orion Engineered Carbons S.A. (NYSE: OEC) reported robust financial results for Q1 2022, with net sales of $484.5 million, reflecting a 34.5% increase year-over-year. Net income rose 38.3% to $32.5 million, and basic EPS improved by 35.9% to $0.53. Adjusted EBITDA reached a record $83.2 million, up 17.3%. The company announced an investment to quadruple acetylene black capacity and plans to enhance sustainability initiatives. The outlook for 2022 has been revised upward for both Adjusted EBITDA and EPS, indicating strong growth potential.

Orion Engineered Carbons (NYSE: OEC) has announced plans to construct a facility in La Porte, Texas, dedicated to producing acetylene-based conductive additives, crucial for lithium-ion batteries and high-voltage cables. The investment, ranging from $120 million to $140 million, aims to increase production capacity by approximately 12 kilotons annually, with operations expected to commence in late 2024. This initiative seeks to meet the rising demand for battery materials and contribute to local job creation.

Orion Engineered Carbons (NYSE: OEC) has declared an interim dividend of $0.0207 per common share, totaling approximately $1.25 million. This dividend will be disbursed on July 1, 2022, to shareholders on record as of June 22, 2022. A 15% Luxembourg withholding tax will be applied unless exemptions apply. Orion is a leading supplier of specialty carbon black, used across various industries, and operates 14 plants globally, showcasing its commitment to innovation and sustainable solutions.

Orion Engineered Carbons (NYSE: OEC) announced its first Investor Day on June 8, from 1:00 pm to 4:00 pm EDT at the New York Stock Exchange. This hybrid event offers limited in-person attendance and a virtual option for participants. Investors can register online for the event, which aims to provide insights into Orion's operations and strategic direction. Orion is a global leader in carbon black production, serving various industries with innovative solutions tailored to customer specifications. For more details, visit orioncarbons.com.