Q1 2026 Elkem ASA Earnings Call Transcript
Key Points
- Elkem ASA (ELKEF) is transforming into a more focused metals and materials company by selling its Silicones division to Bluestar.
- The company plans to raise NOK 1.5 billion in new equity to strengthen its balance sheet, with the offering guaranteed by a consortium of investors.
- Elkem ASA (ELKEF) has secured a fully underwritten debt refinancing offer of EUR 1 billion from its relationship banks.
- The company is implementing a significant cost reduction program, targeting NOK 600 million in savings, with half expected to be realized by the end of 2026.
- Elkem ASA (ELKEF) has been granted NOK 87 million from Enova to test and scale up the use of biocarbon in its production facilities, supporting its ESG initiatives.
- The first quarter operational performance was hampered by challenging market conditions, with limited visibility due to geopolitical uncertainties.
- Silicon Products division reported weak results, impacted by production curtailments at several plants in Norway, resulting in an estimated EBITDA negative impact of NOK 250 million.
- Carbon Solutions division faced a negative sales mix and currency impacts due to a weaker US dollar, affecting its financial performance.
- Elkem ASA (ELKEF) reported a significant reduction in EBITDA, down 65% from the first quarter last year, with an EBITDA margin of only 6%.
- The company faces structural challenges in its Iceland operations, which have been experiencing weak profitability and negative EBITDA since late 2024.
Okay. I think we're ready to start. Good morning, and welcome to Elkem's First Quarter Results Presentation. My name is Odd-Geir Lyngstad, and I'm responsible for Investor Relations here in Elkem.
To take us through today's agenda, we have CEO, Helge Aasen; and CFO, Morten Viga. Helge will go through the highlights for the quarter, the market update and the outlook for the second quarter. CFO, Morten Viga, will then present Elkem's first quarter results in more detail. We will open for Q&A after Helge and Morten's presentations.
So with that, I give the word to CEO, Helge Aasen.
Yes. Thank you, Odd-Geir, and good morning, everyone. Welcome. Yes, we are expecting to close the sale of the Silicones division to Bluestar today, 30th of April. This transformation will move Elkem towards a more pure-play metals and materials company.
Another goal and the motivation behind this is to sharpen our strategic
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