Q1 2025 Elkem ASA Earnings Call Transcript
Key Points
- Elkem ASA (STU:1DP) reported a first-quarter EBITDA of NOK898 million, with an EBITDA margin of 11%, showing resilience despite market challenges.
- The Silicones division benefited from improved cost positions, particularly in China, leading to significant results improvement compared to the previous year.
- Elkem ASA's Carbon Solutions division delivered stable results and high margins, maintaining strong financial performance.
- The company is actively engaged in ESG initiatives, including reducing CO2 emissions and launching a range of recycled silicones with a lower carbon footprint.
- Elkem ASA's diverse geographical presence and regional business model provide opportunities to mitigate the impact of global trade tensions.
- Global trade tensions and market uncertainties are affecting Elkem ASA's trade flows and market demand, impacting overall results.
- The Silicones division faced weak market conditions and maintenance stops, which hampered results compared to the previous quarter.
- Power curtailment in Iceland led to reduced capacity utilization, negatively impacting production.
- The US silicon market is experiencing oversupply, putting downward pressure on sales prices.
- The company's first-quarter EPS was negative, impacted by losses from the Silicones division, which is under strategic review.
Hello and good morning and welcom to Elkem's first quarter results presentation. My name is Odd-Geir Lyngstad and I'm responsible for Investor Relations at Elkam. As you can see in today's main agenda item consisting of a market update and outlook for the second quarter and the presentation of the first quarter results.
CEO Helge Aasen, will take us through the first part. And CFO, Morten Viga, will present the financial results for the first quarter. After this presentations we will open for Q&A. So with that, I leave the floor to CEO Helge Assen.
Thank you, Odd-Geir. Good morning, everyone. As you're all aware, the markets are turbulent for the time being caused by global trade tensionsSo this creates a quite significant uncertainty. Also for us, it affects trade flows and market demand and are having an impact on Elkem's results.
The first quarter EBITDA ended up at the NOK898 million which
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