What happened with OIO today?
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OIO Group operates its industrial-waste business through Singapore-based Environmental Solutions (Asia), or ESA. Manufacturers, including semiconductor and pharmaceutical companies, pay ESA to collect and dispose of hazardous and non-hazardous waste. Disposal fees provide most of this business’s revenue. ESA also turns collected waste into materials it sells to industrial users, traders and refiners, including metals, chemicals and NewOil, its waste-derived pyrolysis oil.
This business depends on how much waste customers’ factories generate and on demand and market prices for recovered materials. Revenue is concentrated among a few customers, with one contributing a particularly large share. ESA must maintain the licenses and permits required for its Singapore waste-treatment operations.
OIO Group also owns De Tomaso following its completed acquisition. The brand sells limited-production luxury performance cars, with a lineup comprising the P72 and P900 and a substantial portion of sales passing through independent dealers and wholesalers. It relies on outside partners for development and manufacturing. P72 customers have paid deposits, but orders still need to become completed deliveries and sales. The car business depends on preserving the brand’s exclusivity and securing approvals in its sales markets: the P72 has a U.S. “Show or Display” exemption, while broader U.S. road-legal access and individual vehicle approval in the EU are still being pursued.
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OIO's outlook now also hinges on vehicle deliveries at newly acquired De Tomaso Automobili, a major change these customers of its Singapore industrial-waste business do not capture.
OIO's waste-service demand is tied to chip production at STMicroelectronics, which sells semiconductors to equipment makers and pays ESA to collect and dispose of waste. Watch its manufacturing activity for automotive and industrial chips as a signal of demand for OIO's services.
ExxonMobil's petrochemical operations generate demand for OIO's waste services: ExxonMobil Asia Pacific pays OIO subsidiary ESA to collect and dispose of waste, while ExxonMobil sells petroleum and petrochemical products. Activity in those petrochemical operations is the part to watch for OIO's disposal-fee revenue.
Pfizer's manufacturing operations feed OIO's waste-service demand because Pfizer Asia Manufacturing pays ESA for waste collection and disposal. Pfizer earns most of its revenue from making and selling biopharmaceutical products; manufacturing activity at that customer is the signal to watch for OIO, rather than drug sales alone.
AbbVie pays into OIO's waste-service business through AbbVie Operations Singapore, which buys collection and disposal services from ESA for pharmaceutical manufacturing. AbbVie develops, makes and sells medicines and therapies; its Singapore pharmaceutical manufacturing is the activity to watch for OIO's service demand.
STMicroelectronics N.V. earningsSTM
STMicroelectronics’ report can show whether automotive and industrial chip production is busy or slowing, activity that drives demand for OIO’s waste collection and disposal.
Look for evidence of manufacturing activity in automotive and industrial chips, then compare it with OIO’s waste-service revenue. Steady activity would suggest these customers’ production can keep supporting ESA’s collection and disposal work; weaker activity would put that demand path under pressure.
ABBVIE INC. earningsABBV
AbbVie’s report can offer clues about pharmaceutical manufacturing in Singapore, the activity that brings OIO demand for waste collection and disposal.
Watch for disclosures that indicate how active AbbVie’s Singapore pharmaceutical manufacturing is, and compare that signal with OIO’s waste-service revenue. Steady production would suggest this customer continues to support ESA’s collection and disposal work; weaker activity would point to less demand from this source.
