Elkem: Fourth quarter 2023 concludes a challenging year, signs of recovery



OSLO, Norway, Feb. 8, 2024 /PRNewswire/ — Elkem’s profitability in the fourth quarter 2023 was impacted by challenging markets, but there are signs of recovery as commodity sales prices seem to have bottomed out, and the internal improvement programmes are starting to take effect.

Elkem’s total operating income for the fourth quarter 2023 was NOK 8,436 million, which was up 7% from the third quarter 2023, explained by improved performance in the Silicones division. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to NOK 632 million in the quarter, compared NOK 535 million in the third quarter 2023. Earnings per share (EPS) was NOK -0.73 in the quarter and NOK 0.11 year-to-date. Due to the low EPS, the board has proposed to the annual general meeting not to pay dividends for 2023.

The result for the Silicones division clearly improved from a negative EBITDA contribution in the third quarter 2023. The division delivered positive results in challenging markets, helped by lower raw material costs, improved sales of specialties, and positive effects from the internal improvement programmes. The Silicon Products divisions’ result declined compared to third quarter 2023, mainly due to lower realised contract prices. In addition, the maintenance stop in Iceland, and the fire at the Salten plant have negatively impacted the result by NOK 85 million. The Carbon Solutions division delivered another strong result despite a decline in sales volume in the quarter. The division delivered its best full-year result ever.

“The macro-economic sentiment has been challenging in 2023, characterised by high inflation, interest rate hikes, slow recovery in China, and geopolitical uncertainties. The markets have also been impacted by Chinese exporters discounting prices to get over a prolonged slump in demand. This has resulted in weak demand and lower sales prices in Elkem’s main markets and impacted the results negatively. Despite the weaker results in 2023, Elkem is delivering on its financial targets over the business cycle, based on strong top line growth, good profitability, and a sound financial position,” says Elkem CEO Helge Aasen.

Elkem’s operating income for 2023 was NOK 35,545 million compared to NOK 45,898 million in 2022. The EBITDA for 2023 was NOK 3,771 million compared to …

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