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Sep 30, 2023
Olin Q3 2023 Earnings Report
Announced third quarter 2023 results, reflecting net income and adjusted EBITDA.
Key Takeaways
Olin Corporation reported a net income of $104.1 million, or $0.82 per diluted share, for the third quarter of 2023. Sales were $1,671.4 million, and adjusted EBITDA was $314.8 million. The company also repurchased $202.1 million in shares during the quarter and is focusing on actions to improve 2024 performance.
Net income for the third quarter 2023 was $104.1 million, or $0.82 per diluted share.
Adjusted EBITDA for the third quarter 2023 was $314.8 million.
Share repurchases amounted to $202.1 million in the third quarter 2023.
The company is focusing on actions to improve 2024 performance.
Olin
Olin
Olin Revenue by Segment
Revenue by Segment
Chlor Alkali & Vinyls Revenue
CapyFin.comEpoxy Revenue
CapyFin.com Forward Guidance
Olin expects fourth quarter 2023 adjusted EBITDA to be in the $200 million range, with Winchester segment results similar to third quarter 2023 levels. The 'value accelerator initiative' is expected to reduce fourth quarter 2023 adjusted EBITDA outlook by approximately $100 million compared to previous expectations but should deliver an improved 2024 adjusted EBITDA compared to 2023.
Positive Outlook
- Global conditions for Chlor Alkali Products and Vinyls business are approaching a favorable inflection point.
- Winchester segment fourth quarter results expected to be similar to third quarter 2023 levels.
- Value accelerator initiative' should deliver an improved 2024 adjusted EBITDA compared to 2023.
- Prioritizing share repurchases from excess cash flow
- Disciplined approach to ECU values.
Challenges Ahead
- Electrochemical unit (“ECU”) values have been declining in 2023.
- The ‘value accelerator initiative’ is expected to reduce fourth quarter 2023 adjusted EBITDA outlook by approximately $100 million compared to previous expectation.
- Contracting demand environment over the last six quarters
- Idled St. Gabriel, Louisiana, facility and largest chlor alkali plant at Freeport, Texas facility
- Chlor Alkali Products and Vinyls third quarter 2023 segment results were also negatively impacted by higher costs and reduced profit from lost sales associated with operating issues, related to the previous quarter’s maintenance turnaround at our vinyl chloride monomer plant at the Freeport, Texas facility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income