Third quarter operating revenues totalled NOK 2,219 million (NOK 2,143 million)¹. Operating profit before amortisation ended at NOK 286 million, up NOK 9 million from the same period last year. At the end of the third quarter, operating revenues amounted to NOK 7,003 million (NOK 6,719 million)¹, while operating profit before amortisation was NOK 1,098 million (NOK 885 million)¹.

Profit for Primary Aluminium was lower than in the third quarter of last year, largely due to higher alumina costs, a weaker USD and a strong NOK. The average price of aluminium for three-month delivery on the London Metal Exchange (LME) was USD 2,605 in the third quarter of 2007, compared with USD 2,527 in the third quarter of 2006. Primary aluminium prices have declined throughout the quarter. A loss of NOK 90 million on metal hedges was realised in the third quarter. Delivered volume totalled 76,000 tonnes. The investment in a new anode factory in Mosjøen, Norway was completed in the quarter.

The energy business reported satisfactory profit in the third quarter of 2007, primarily driven by good results from power trading and high electricity production. Heavy precipitation and high reservoir inflow enabled hydropower production of 820 GWh for Elkem’s operation in Norway in the third quarter, which is 219 GWh higher than in the corresponding period last year. Elkem’s water resource situation in the form of reservoir storage is significantly stronger at the end of the third quarter than normal for the time of year. At 14.0 øre/kWh in July, 13.2 øre/kWh in August and 19.8 øre/kWh in September, the system price on the Nordic market was low in the third quarter. Profit from trading was high in the quarter, and significantly better than in the corresponding period of last year. The development of Saudefaldene is proceeding in line with revised plans.

Profit from the silicon-related units was significantly better than in the third quarter of 2006, mainly due to higher selling prices. The market for silicon metal and ferrosilicon continued to strengthen in the third 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 is expected to start up in the second half of 2008. Costs totalling NOK 59 million were expensed in connection with Elkem Solar in the third quarter.

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