Q4 2024 Elkem ASA Earnings Call Transcript
Key Points
- Elkem ASA (ELKEF) reported an operating income of NOK8.5 billion and an EBITDA of close to NOK1.2 billion, representing a 14% margin, which is satisfactory given weak market conditions.
- The Silicones division delivered its best results since Q3 2022, driven by internal improvements and higher sales volumes.
- The company has initiated a strategic review of the Silicones division to streamline its business portfolio and reallocate capital to accelerate growth in Silicon Products and Carbon divisions.
- Elkem ASA (ELKEF) has a strong focus on ESG performance, with initiatives to reduce CO2 emissions and supply critical raw materials for the green transition.
- The company received recognition from rating agencies, including two SEAL awards for sustainable business practices and high scores from CDP for forest and water management.
- The Silicones division, despite improvements, still faces weak market conditions and requires significant future investments to maintain its market position.
- The Silicon Products division reported a decline in operating income due to lower sales volumes and weak market conditions.
- The Carbon Solutions division, while stable, is affected by weak steel and ferroalloy markets, leading to reduced demand.
- Elkem ASA (ELKEF) faces challenges from trade tensions and geopolitical uncertainties, which could impact its operations and pricing strategies.
- The company experienced a downgrade in its credit rating from BBB to BBB- due to slower than expected recovery in credit metrics amid weak market conditions.
Good morning and welcome to Elkem's fourth-quarter results presentation. My name is Odd-Geir Lyngstad, and I'm responsible for Investor Relations in Elkem. To take us through today's agenda, we have CEO, Helge Aasen; and CFO, Morten Viga.
The agenda consists, as you can see, of business update, update on market with outlook for the first quarter, and a presentation of the financial results for the fourth quarter. After Helge and Morten's presentations, we will open for Q&A.
And CEO, Helge Olson, will take us through the first agenda items. So please, Helge.
Yeah. Thank you, Odd-Geir. And good morning, welcome everyone, both present physically and online. The key message this quarter is that Elkem is continuing to deliver improving results. And we have initiated a strategic review of the Silicone's division. In the fourth quarter, the operating income amounted to NOK8.5 billion, with an EBITDA of
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