Elkem Delivers Solid Results in Q2

Elkem achieved high capacity utilization and good sales volumes in the second quarter of 2020 amid challenging global markets impacted by Covid-19. Elkem’s total operating income for Q2 2020 was NOK 5.879 billion, up two percent from the corresponding quarter last year. Earnings before interest, taxes depreciation and amortization (EBITDA) amounted to NOK 644 million in the quarter, which is in line with that in Q2 2019. This reflects Elkem’s strong market operations and good cost control.

First, steady results in a turbulent global market environment were attributed to a series of structural changes that have created synergies and accelerated the company’s specialization. The merger of the silicon materials and foundry divisions into the new silicon products division has further expanded our competitive edge. The digital office has helped drive the digital transformation of Elkem’s global business units and plants. The battery materials division has accelerated the development of graphite and silicon-based anode materials in the battery market. The biocarbon business led Elkem’s progress in sustainable carbon resources and achieved the long-term goal of carbon-neutral metals production. Secondly, the “efficiency improvement” program launched by Elkem is progressing smoothly, with the results taken shape gradually. Annualized gains of NOK 88 million have been achieved by the end of the second quarter. The program will generate benefits of more than NOK 350 million per year from the end of 2021, mainly through reduced personnel costs.

Michael Koenig, CEO of Elkem, said, “We are aligning our organizational structure with the strategic requirements of the company, focusing on new areas of focus and further enhancing operational excellence. Despite the impact of the Covid-19 outbreak on market demand and prices, Elkem achieved strong sales and good results in Q2. Going forward, Elkem will continue to pick up its pace in the digital and sustainable development, maintain an outstanding competitive edge and achieve profitable growth based on a favorable cost position, a diversified product portfolio, an excellent geographic location and a solid financial structure.