According to the "European Rubber Journal" report, Orion Engineered Carbon Company released its financial report for the second quarter of this year on August 9. Data show that the company's rubber carbon black business unit's earnings before interest, taxes, depreciation and amortization (EBITDA) increased significantly year-on-year, mainly due to the increase in contract prices. Affected by the global economic slowdown, sales of rubber carbon black in the second quarter of 2023 were 173,700 tons, a year-on-year decrease of more than 9%. Sales in the three months to the end of June were US$309 million (approximately 280 million euros), a decrease of 14%; this was mainly affected by lower sales volume and oil price fluctuations.
Orion's second-quarter operating performance report provided data indicating that the increase in contract base selling prices helped offset some of the lost sales. Driven by the increase in contract base prices, adjusted EBITDA profit reached $57.4 million, a year-on-year increase of 51%, and gross profit margin also improved. However, the company reported that this gain was also partially offset by lower sales volume and lower combined heat and power revenue. Orion emphasized that "delays in clearing inventory and destocking" by customers in Europe, the Middle East and Africa and the Americas were the main reason for the decline in sales.
Looking ahead, Orion said that despite weak end-market performance, they are still confident of achieving a "record year." Corning Painter, the company's chief executive officer, said: "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 added that the carbon black industry giant is working hard to achieve the preset target for 2025 - that is, adjusted EBITDA profit will reach $500 million.