Orion Engineered ends Q2 with €42.8 million cash and equivalents, completes IPO in July

By Lisa Kerner

Charlotte, N.C., Sept. 5 – Orion Engineered Carbons SA boasted a “strong performance” during its second quarter with an 8% growth in EBITDA year over year to €56 million, according to chief executive officer Jack Clem.

Clem made his comments during the company’s earnings conference call on Friday.

Orion ended the quarter on June 30 with cash and cash equivalents of €42.8 million, said chief financial officer Charles Herlinger on the call.

The company’s noncurrent indebtedness at quarter-end totaled €740.1 million, comprised of liabilities to shareholders of €259.8 million and financial liabilities of €480.3 million, according to the CFO.

Short-term borrowings increased by €32.8 million in the quarter.

Successful IPO, debt reduction

In July, the company completed its IPO, and in August, Orion completed the syndication process on its €665 million term loan and €115 million revolving credit facility.

Orion “significantly reduced” its debt as a result to a pro forma amount of €665 million, less transaction costs associated with the IPO-related refinancing, said Herlinger.

Second-quarter cash inflows from operating activities amounted to €19.7 million, while cash outflows from investing activities totaled €11.9 million.

Herlinger said Orion plans to finance its future capital expenditures using cash generated by operating activities.

Orion Engineered Carbons is a Frankfurt, Germany-based supplier of Carbon Black.

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