Elkem’s second quarter operating revenues totalled NOK 2,351 million (NOK 2,383 million)¹. Operating profit before amortisation was NOK 281 million, up NOK 85 million compared with the same period last year.

Profit for Primary Aluminium was slightly lower than in the second quarter of 2006, mainly due to higher raw material and operating costs, weak USD and reduced contribution from USD hedges. The average price of aluminium for three-month delivery on the London Metal Exchange (LME) was USD 2,799 in the second quarter, compared with USD 2,681 in the same quarter of 2006. A loss of NOK 102 million on metal hedges was realised in the second quarter. Delivered volume was 80,000 tonnes. The investment in a new anode factory at Mosjøen will reach completion in the third quarter, as planned. Primary aluminium prices are still high at the start of the third quarter, and the market is expected to remain strong for the rest of the quarter. In the second quarter Elkem signed an agreement to deliver technology and know-how to UC Rusal’s modern­isation programme. The agreement is worth about USD 20 million.

The energy business posted satisfactory profit in the second quarter of 2007. High precipitation levels and high reservoir inflow enabled hydropower production of 724 GWh for Elkem’s operation in Norway, 158 GWh higher than in the same period last year. Elkem’s water resource situation in the form of reservoir storage is significantly stronger at the end of the second quarter than normal for the time of year. At 18.2 øre/kWh, the average system price on the Nordic market was low compared with 34.9 øre/kWh in the same period last year. The development of the expansion project at Saudefaldene is proceeding in line with revised plans.

Profit from the silicon-related units was significantly better than in last year’s second quarter, mainly due to higher selling prices. The market for silicon metal and ferrosilicon remained strong in the second quarter. The other silicon-related units reported a good operating situation and profit growth. The construction of a new industrial plant for Elkem Solar at Fiskaa in Kristiansand is forging ahead and, as previously ­announced, commercial deliveries are expected from the second half of 2008. Costs recognised in the income statement for Elkem Solar were NOK -32 million in the second quarter.

¹The figures in brackets refer to the corresponding period of the previous year
²Excluding acquisitions, divestments and currency translation effects