Orion's rubber carbon black sales fell by 9% in the first half of the year, but profits increased by 51%

　　In accordance with a report from the "European Rubber Journal," the Orion Engineered Carbon Company unveiled its financial report for the second quarter of this year on August 9. The data reveals a notable year-on-year surge in the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company's rubber carbon black business unit, primarily attributed to an upswing in contract prices. Due to the global economic deceleration, sales of rubber carbon black in the second quarter of 2023 amounted to 173,700 tons, marking a more than 9% decline compared to the previous year. Sales for the three months leading up to the end of June totaled $309 million (approximately 280 million euros), signifying a 14% reduction. This dip was predominantly influenced by diminished sales volume and fluctuations in oil prices.

　　Orion's performance report for the second quarter disclosed that the escalation in contract base selling prices played a crucial role in mitigating some of the lost sales. Bolstered by this price increase, adjusted EBITDA profit soared to $57.4 million, an impressive year-on-year surge of 51%, alongside an improvement in gross profit margin. Nonetheless, the company noted that this gain was partially offset by decreased sales volume and a decline in combined heat and power revenue. Orion underscored that the "delays in clearing inventory and destocking" by customers in Europe, the Middle East, Africa, and the Americas were the primary factors contributing to the decline in sales.

　　Looking ahead, Orion expressed confidence in achieving a "record year," despite a sluggish performance in end markets. Corning Painter, the CEO of the company, remarked, "We now estimate that 2023 adjusted EBITDA will be in the range of $320 million to $350 million. The median value will increase 7% compared with the record 2022 performance." Pei Kangning further added that the carbon black industry titan is diligently working towards achieving their preset target for 2025, wherein adjusted EBITDA profit is projected to reach $500 million.