HOUSTON - Orion Engineered Carbons S.A. (NYSE: NYSE:OEC), a global supplier of carbon black, has announced that its Board of Directors approved an interim dividend of $0.0207 per common share, with a total payout of approximately $1.25 million.
This dividend is scheduled for distribution on October 9, 2024, to shareholders on record by July 1, 2024. A withholding tax of 15%, applicable in Luxembourg, will be deducted from the dividend amount under certain conditions.
The company, with a history extending over 160 years, specializes in producing carbon black—a material used in a variety of industries, including automotive tires, coatings, inks, batteries, plastics, and other specialized applications. Orion S.A. prides itself on its innovative approach, catering to customer needs with sustainability in mind. It operates 15 production plants globally and has innovation centers across three continents.
The announcement of the interim dividend follows the company's established practice and reflects its ongoing financial strategies. Shareholders looking forward to the dividend payout should note the applicable tax implications based on their individual circumstances.
Investors are advised to consider the forward-looking nature of this announcement, which is based on current expectations and assumptions. As with any forward-looking statements, there exist risks and uncertainties that could cause actual outcomes to differ, as detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2023.
This dividend declaration by Orion S.A. is based on a press release statement and is intended to provide shareholders with a return on investment in the near term. It is important for investors to stay informed about any new developments that may affect their holdings in Orion S.A.
"In other recent news, Orion Engineered Carbons S.A. has seen an increase in its price target by Jefferies, citing a potential extension in the pricing cycle due to concerns over methane pyrolysis projects and rising regulatory costs.
The firm maintains a positive outlook for Orion, expecting favorable price settlements for rubber black and a global restock cycle in specialty carbons in the years 2025 to 2026. Orion's long-term prospects are also seen to be strengthened by the transition to electric vehicles and tire circularity initiatives.
Orion has also announced a strategic partnership with French recycling company, Alpha Carbone, to enhance sustainable carbon black production. This collaboration includes a long-term supply agreement, with operations expected to commence in late 2025.
Moreover, the company reported a 19% increase in specialty volume year-over-year and a rise in gross profit per ton to $659 for the first quarter of 2024. Despite mixed market conditions, Orion anticipates continued growth and a record EBITDA for the year.
The company also plans to open a new plant in Texas, with significant financial contributions from the facility expected in 2026. These recent developments highlight Orion's strategic growth, commitment to sustainability, and resilience in a mixed market environment."
InvestingPro Insights
Orion Engineered Carbons S.A. (NYSE: OEC) has made a notable move to reward its shareholders with an interim dividend. Investors may find additional confidence in this gesture as the company exhibits a stable financial backdrop.
According to recent InvestingPro data, OEC boasts a market capitalization of $1.32 billion and a P/E ratio that has been slightly adjusted from 15.16 to 15.02 in the last twelve months as of Q1 2024. Moreover, the company's revenue for the same period stands at $1.896 billion, with a gross profit margin of 23.04%, highlighting its ability to maintain profitability.
Adding to the positive outlook, two InvestingPro Tips for OEC are particularly relevant to shareholders and potential investors. Firstly, management's aggressive share buyback strategy can be indicative of the company's belief in its undervalued stock, which could signal a potential upside.
Secondly, with analysts revising their earnings upwards for the upcoming period and predicting profitability for the year, the company's financial health appears to be on solid ground. These insights, coupled with the company's low price volatility, underline a potentially attractive investment profile.
For those interested in deeper analysis, there are additional InvestingPro Tips available that can provide further insights into OEC's investment potential. By visiting https://www.investing.com/pro/OEC, readers can explore these tips in detail. To enhance the experience, InvestingPro is offering an exclusive 10% discount on yearly or biyearly Pro and Pro+ subscriptions with the coupon code PRONEWS24. With this code, users can gain access to valuable investment information, including a comprehensive list of 7 additional InvestingPro Tips related to Orion Engineered Carbons S.A.
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