Affected by changes in oil prices, Oillion's first-quarter profit fell by 10%

Recently, Orion disclosed its results for the first quarter of 2024. The report shows that as of the end of the first quarter of 2024, Oillion achieved net sales of US$502 million, a year-on-year increase of 0.4%. In terms of profit, Oerilon's gross profit for the first three months was US$122.2 million, a decrease of US$14.2 million or 10.4% from the same period last year.

According to Oilon, although its global sales of rubber carbon black and specialty carbon black both increased, up 14.9kmt year-on-year, the conduction effect of falling oil prices and the decline in cogeneration prices caused by the reduction in electricity prices in Europe have jointly affected the company's profitability. These unfavorable factors largely offset the positive effect of sales growth, resulting in a significant decline in the company's profit this quarter.

In the field of carbon black for rubber, Ou Lilong also achieved sales growth. Sales in this segment increased by 4.6kmt, or 2.5% year-on-year, due to increased market demand in Europe, Middle East and Africa (EMEA) and Asia Pacific. However, similar to the overall results, net sales in the sector fell by US$6.7 million year-on-year to US$332 million, a decrease of 2.0%. This means that despite the increase in sales, external factors such as changes in oil prices still have a significant impact on the company's performance.

Ou Lilong is optimistic about the future market prospects. Oilon said that as Asian tire companies continue to expand production capacity, the company is expected to usher in more sales opportunities and higher profitability.