In This Article:
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Operating Income: NOK8 billion, up 1% year-over-year.
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EBITDA: NOK898 million, with a margin of 11%.
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Silicones Division Operating Income: Almost NOK3.8 billion, up 16% year-over-year.
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Silicones Division EBITDA: NOK201 million.
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Silicon Products Division Operating Income: NOK3.5 billion, down 12% year-over-year.
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Silicon Products Division EBITDA: NOK489 million, with a margin of 14%.
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Carbon Solutions Division Operating Income: NOK860 million, up 3% year-over-year.
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Carbon Solutions Division EBITDA: NOK261 million, with a margin of 30%.
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Net Finance Expenses: Minus NOK192 million.
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Net Debt: NOK11 billion.
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Debt Leverage: 2.5 times EBITDA.
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Cash Flow from Operations: Plus NOK97 million.
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Total Investments: NOK414 million.
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EPS (Earnings Per Share): Minus NOK0.33 per share.
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Equity Ratio: Approximately 50%.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elkem ASA (STU:1DP) reported a first-quarter EBITDA of NOK898 million, with an EBITDA margin of 11%, showing resilience despite market challenges.
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The Silicones division benefited from improved cost positions, particularly in China, leading to significant results improvement compared to the previous year.
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Elkem ASA's Carbon Solutions division delivered stable results and high margins, maintaining strong financial performance.
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The company is actively engaged in ESG initiatives, including reducing CO2 emissions and launching a range of recycled silicones with a lower carbon footprint.
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Elkem ASA's diverse geographical presence and regional business model provide opportunities to mitigate the impact of global trade tensions.
Negative Points
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Global trade tensions and market uncertainties are affecting Elkem ASA's trade flows and market demand, impacting overall results.
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The Silicones division faced weak market conditions and maintenance stops, which hampered results compared to the previous quarter.
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Power curtailment in Iceland led to reduced capacity utilization, negatively impacting production.
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The US silicon market is experiencing oversupply, putting downward pressure on sales prices.
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The company's first-quarter EPS was negative, impacted by losses from the Silicones division, which is under strategic review.
Q & A Highlights
Q: Can you elaborate on the impact of maintenance stops and whether operations have resumed in April? A: Maintenance stops are necessary for maintaining asset conditions. We accelerated some projects during the low business cycle to prepare for future demand. The direct loss from these stops was approximately NOK125 million for the quarter. Operations have resumed, and we don't plan extensive stops in the second quarter. - Helge Aasen, CEO