Q2 2024 Elkem ASA Earnings Call Transcript
Key Points
- Elkem ASA (ELKEF) reported an EBITDA of slightly above NOK1 billion, resulting in an EBITDA margin of 12%.
- The Silicones division showed improved results compared to both the second quarter last year and the first quarter this year.
- Carbon Solution delivered strong quarterly results with favorable cost development and good sales volumes.
- Elkem ASA (ELKEF) received recognition for its strong ESG performance, including an A+ rating from Position Green.
- The company has ambitious innovation strategies, with significant contributions from new products developed within the last five years.
- Market conditions remain challenging with relatively weak demand and low sales prices, particularly for silicones in China.
- The overall market sentiment is still weak, impacting profitability.
- The Silicones division, despite improvements, is still facing an oversupplied market and pressure on sales prices.
- The Silicon Products division experienced a reduction in operating income due to lower sales prices for silicon and ferrosilicon.
- The Carbon Solutions division saw a reduction in sales prices, which impacted overall revenue.
Hello and good morning. It's a pleasure welcoming you to Elkem's second-quarter and half-year results presentation. My name is Odd-Geir Lyngstad, I'm Vice President for Investor Relations in Elkem. With me today, I have CEO, Helge Aasen; and CFO, Morten Viga, to take us through a business update. The financial results for the second quarter and the outlook for the third quarter. After Helge and Morten's presentations, we will open for Q&A.
We will start with the business update. So please, Helge, the word is yours.
Thank you, Odd-Geir. Good morning, everyone. The result for the second quarter was in line with the second quarter last year, but clearly an improvement compared to the previous three quarters. We are pleased with the improvement in profitability, while market conditions remain challenging. The demand is still relatively weak, and sales prices remain on a low level, particularly is that the
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