Olin (OLN) Inks Chlorine Pact With Ashta to Optimize Logistics
Olin Corporation OLN forms a pact with Ashta Chemicals, Inc., a leading manufacturer of potassium hydroxide (KOH) headquartered in Ohio, for the purchase and sale of chlorine produced at the latter’s Ashtabula, OH facility. Existing contracts will continue to be in action for chlorine customers of both companies.
This deal will enable both companies to optimize logistics across their portfolios, thereby bringing down transportation costs by reducing the length and time of the journey. This eases the access to chlorine for customers, while ensuring a secured supply flow within Olin’s network. The company has unequaled expertise in the safe and efficient delivery of chlorine, which is an added benefit.
Ashta noted that it is enthusiastic about the partnership, as this will allow it to harness its strength in the production of KOH for its growing customer base.
Shares of Olin have skyrocketed 311.5% in a year, higher than the industry’s growth of 47.5%. The company’s estimated earnings growth rate for the current year is pegged at 506.7%.
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The company, in its first-quarter earnings call, said that it expects price hikes for chlorine, epichlorohydrin, epoxy resins, bleach, ethylene dichloride and chlorinated organics to favorably contribute to its Chemicals businesses in the second quarter.
Olin also expects second-quarter adjusted EBITDA to improve sequentially from first-quarter levels, barring the net one-time financial benefits from Winter Storm Uri.
Olin Corporation Price and Consensus
Olin Corporation price-consensus-chart | Olin Corporation Quote
Zacks Rank & Other Key Picks
Currently, Olin carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the basic materials space are Univar Solutions Inc. UNVR, Dow Inc. DOW and Tronox Holdings PLC TROX, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have gained 43.9% in a year.
Dow has a projected earnings growth rate of 326.5% for the current year. The company’s shares have grown 52.7% in a year.
Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have jumped 201.5% in a year.
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