Orion S.A. Declares Interim Quarterly Dividend

Rhea-AI Summary

Orion S.A. (NYSE: OEC) declares an interim dividend of $0.0207 per common share for the second quarter of 2024, totaling approximately $1.25 million. The dividend will be paid on April 4, 2024, to shareholders of record as of March 13, 2024, with a Luxembourg withholding tax of 15%.

Positive

• Orion S.A. announces an interim dividend of $0.0207 per common share for Q2 2024.
• The total dividend payout amounts to around $1.25 million based on current outstanding shares.
• Shareholders will receive the dividend on April 4, 2024, if they are on record as of March 13, 2024.
• Luxembourg withholding tax of 15% will be deducted from each dividend unless exempted or reduced under specific circumstances.

Negative

• None.

Insights

Financial Analyst

The declaration of an interim dividend by Orion S.A. indicates a distribution of profits back to shareholders, which is a positive signal of the company's current financial health and confidence in its liquidity position. The specified amount of $0.0207 per share translates to a total payout of approximately $1.25 million, which investors can use to gauge the company's payout ratio and dividend yield. These metrics are crucial for income-focused investors when assessing the attractiveness of Orion S.A.'s stock.

Furthermore, the imposition of a 15% Luxembourg withholding tax highlights the importance of understanding international tax implications on dividend income. Investors may need to consider the net amount they will receive after this tax, especially if they are not eligible for exemptions or reductions. This tax treatment could affect the net yield on investment, especially for international investors who are subject to double taxation.

Market Research Analyst

Orion S.A.'s announcement of an interim dividend may also serve as a barometer for the specialty chemical industry's performance, particularly in terms of cash flow generation and capital allocation strategies. Comparing this dividend announcement to industry peers can provide insights into Orion's competitive positioning. For example, a higher or lower dividend yield relative to competitors may indicate differences in financial strategy, such as a more aggressive reinvestment policy or a more conservative approach to balance sheet management.

Additionally, the timing of the dividend payment and the record date are essential for investors to understand. The record date sets the eligibility for receiving the dividend, which can influence trading activity around this date as investors position themselves to capture the dividend, a phenomenon known as 'dividend capture strategy'.

Tax Advisor

From a taxation perspective, the withholding tax detail is significant. Investors, particularly those who are non-residents of Luxembourg, should be aware of the Double Taxation Treaties (DTTs) that may exist between Luxembourg and their country of residence. These treaties can potentially reduce the withholding tax burden. It's important for investors to consult with a tax professional to understand the specific tax treatment of these dividends and to explore any opportunities for claiming a reduction or refund of the withholding tax paid, based on their individual circumstances.

HOUSTON--(BUSINESS WIRE)-- Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that its board of directors has declared an interim dividend to be paid in the second quarter of 2024 of $0.0207 per common share of the company, which is equivalent to the aggregate amount of approximately $1.25 million based on the number of common shares currently outstanding.

The interim dividend will be paid on April 4, 2024, to holders of record as of the close of business on March 13, 2024. Luxembourg withholding tax at a rate of 15% will be deducted from each interim dividend, subject to exemptions and reductions in certain circumstances.

About Orion S.A.

Orion S.A. (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection. Orion has innovation centers on three continents and 15 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. For more information, please visit orioncarbons.com.

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including regarding the planned payment of an interim dividend. Forward-looking statements are statements of future expectations that are based on current expectations and assumptions and involve known and unknown risks and uncertainties, including risks related to our planned payment of the interim dividend and the other risks and uncertainties listed under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, each of which could cause actual results, performance, or events to differ materially from those expressed or implied in these statements. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties emerge from time to time, and it is not possible to predict all risk factors and uncertainties, nor can we assess the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or other information, other than as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229699276/en/

Wendy Wilson

Orion S.A.

Head of Investor Relations

wendy.wilson@orioncarbons.com

+1 281-974-0155

William Foreman

Orion S.A.

Director of Corporate Communications and Government Affairs

william.foreman@orioncarbons.com

Direct: +1 832-445-3305

Mobile: +1 281-889-7833

Source: Orion Engineered Carbons S.A.

FAQ

What is the ticker symbol for Orion S.A.?

The ticker symbol for Orion S.A. is OEC.

How much is the interim dividend declared by Orion S.A. for the second quarter of 2024?

Orion S.A. declared an interim dividend of $0.0207 per common share for the second quarter of 2024.

When will the interim dividend be paid to shareholders?

The interim dividend will be paid on April 4, 2024.

What is the Luxembourg withholding tax rate for the interim dividend?

Luxembourg withholding tax at a rate of 15% will be deducted from each interim dividend.

What is the total amount of the interim dividend payout by Orion S.A.?

The total amount of the interim dividend payout by Orion S.A. is approximately $1.25 million.