Elkem Asa Norway Stock Price, News & Analysis

In Q2 2022, Elkem reported a record EBITDA of NOK 3,924 million, a significant increase from NOK 1,371 million in Q2 2021. Total operating income reached an all-time high of NOK 12,326 million, marking a 68% year-on-year rise. The strong performance was mainly driven by the Silicon Products and Carbon Solutions divisions. However, the Silicones division faced challenges due to Covid restrictions in China, resulting in reduced demand and an estimated NOK 100 million negative EBITDA impact from delays in France. Elkem's robust market outlook remains positive for Q3 2022.

Norwegian Prime Minister Jonas Gahr Støre officially opened a new energy recovery plant at Elkem Salten in Norway on November 15, 2021. The facility will recover 28% of the electrical energy used at the plant, powering around 15,000 Norwegian households. This NOK 1.2 billion investment, supported by a NOK 350 million Enova grant, positions Elkem as a leader in energy-efficient silicon production aligned with its climate targets for net zero by 2050. Elkem currently utilizes 83% renewable electricity and aims to reduce CO2 emissions by 28% by 2031.

The Board of Directors of Elkem ASA announced the resignation of CEO Michael Koenig, effective June 30, 2021. Helge Aasen will serve as interim CEO while the board initiates a succession process. Koenig, who led the company since December 2019, leaves Elkem after achieving strong results, including an all-time high operating income in Q1 2021. The company is positioned well for future growth, focusing on ESG, digital transformation, and battery materials. Elkem achieved an operating income of NOK 24.7 billion in 2020 and is listed on the Oslo Stock Exchange (ticker: ELK).

Elkem has committed NOK 140 million to enhance its Rana production facility in Norway, focusing on reducing CO2 emissions through increased biocarbon usage. This investment will facilitate the use of wood chips as biocarbon, aiming to raise the share of emissions from renewable sources to 40% by 2030, up from the current 20%. Supported by NOK 70 million from the NOx fund, the project also aims to boost productivity and improve emissions, equating the NOx reduction to removing 20,000 diesel cars from the roads. Additionally, Elkem has a strong record in sustainable practices and has previously achieved commendations for its environmental performance.

Elkem has launched its industrial pilot for battery materials in Kristiansand, Norway, marking the start of pilot production for customers. The company has founded Vianode, a fully-owned subsidiary, to focus on sustainable anode materials for the growing electric vehicle market. Vianode is actively recruiting for key positions and is in discussions with battery manufacturers globally. It aims to reduce CO2 emissions in anode material production by over 90%. Elkem has secured NOK 10 million in government support for planning a large-scale battery materials plant in Norway.

Elkem ASA has published its annual report for 2020, highlighting significant resilience amidst economic challenges. The company reported operating income of NOK 24,691 million, a 9% increase from 2019, while EBITDA remained stable at NOK 2,684 million. Elkem aims to reduce costs by NOK 350 million through a productivity program by the end of 2021. The proposed dividend is NOK 0.15 per share, reflecting a 36% payout. In ESG efforts, Elkem achieved a Gold sustainability rating from EcoVadis and an A rating from CDP, marking significant progress in environmental stewardship.

Elkem's fourth quarter of 2020 reported an all-time high operating income of NOK 7,129 million, reflecting a 28% year-on-year increase. EBITDA surged 81% to NOK 938 million, and EPS stood at NOK 0.18. The board proposed a dividend of NOK 0.15 per share, representing a 36% payout ratio. Positive performance was noted across all segments, particularly in China. Elkem is also investing in silicone projects in France and China, with a focus on operational efficiency and sustainability. The company ended the year with strong financial metrics and positive market conditions.

Elkem has signed a Letter of Intent with Vow ASA's subsidiary, Vow Industries, to significantly reduce CO2 emissions from silicon production. The collaboration aims to develop biocarbon from sustainable forestry materials at a planned plant in Follum, Norway. Currently, Elkem uses 20% biocarbon and aims for 40% by 2030. With 83% of its electricity sourced from renewables, Elkem received an 'A' rating from CDP for climate transparency. The new biocarbon initiative is part of Elkem's strategy to ensure competitive advantages in environmentally responsible manufacturing.

Elkem has secured NOK 10 million in funding from Enova to initiate planning for a large-scale battery materials plant, Northern Recharge, in Norway. This project aims to enhance competitiveness in the growing battery industry by developing greener production processes with significantly lower CO2 emissions. The company has announced plans to utilize renewable hydropower for energy-efficient production, potentially reducing emissions by over 90%. This initial support is crucial for Elkem as it moves toward a final investment decision in 2021.