Half Year 2025 Elkem ASA Earnings Call Transcript
Key Points
- Elkem ASA (ELKEF) achieved an EBITDA of NOK803 million for the second quarter, with a margin of 10%, supported by strong operational performance and high utilization rates.
- The company received favorable treatment from the Norwegian Ministry of Climate and Environment regarding free emission quotas, potentially receiving 1.3 million additional allowances.
- Elkem ASA (ELKEF) was awarded NOK33 million from Innovation Norway to pilot green products using recycled slag and silicon, supporting their green technology initiatives.
- The company secured a new electricity contract with NTE for 300 gigawatt hours per year, ensuring stable and competitive energy supply for future operations.
- Elkem ASA (ELKEF) has strong market positions in growth sectors such as construction, energy, and mobility, contributing to sustainable global infrastructure development.
- Elkem ASA (ELKEF) faced downward price pressure in key markets, particularly due to weak demand and Chinese imports affecting the Silicon Products division.
- The company's operating income for the second quarter was down 6% compared to the previous year, with Silicon Products and Carbon Solutions experiencing declines.
- The reported group EBITDA margin was below the long-term target of 15% to 20%, impacted by historically low sales prices in key markets.
- The Silicon Products division reported a 54% decline in EBITDA compared to the previous year, mainly due to lower sales prices and weak demand.
- The silicones market remains challenging with overcapacity in China and reduced demand from major sectors, impacting the division's performance.
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Good morning, and welcome to Elkem's second quarter results presentation. My name is Odd-Geir Lyngstad, and I'm responsible for Investor Relations in Elkem. In today's presentation, we will go through the highlights for the second quarter and give you a market update with the outlook for the third quarter.
CEO, Helge Aasen, will take us through this part of the presentation before CFO, Morten Viga, will present the financial results for the second quarter. We will open for Q&A after Helge and Morten's presentations.
So with that, I will leave the word to CEO, Helge Aasen.
Thank you, Odd-Geir, and good morning, everyone, following this presentation. We have navigated through a relatively weak second quarter, and we've seen downward price pressure in several of Elkem's key markets. However, the operational performance has been good, and we've had generally high utilization rates due to good cost and market
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