Elkem’s fourth-quarter operating revenues totalled NOK 3,290 million (NOK 2,461 million)¹. EBITA was NOK 265 million, down NOK 288 million from NOK 553 million in the same period last year. Full-year operating revenues came to NOK 10,293, up from NOK 9,180 million in 2006. EBITA ended the year at NOK 1,363 million compared with NOK 1,438 million in 2006.

Profit for Primary Aluminium was down on the fourth quarter of 2006, largely due to a stronger NOK against the USD and higher raw material costs. Profit was also affected by the fall in the average price of aluminium for three-month delivery on the London Metal Exchange (LME) from USD 2,726 in the fourth quarter of 2006 to USD 2,495 in the same quarter of 2007. Primary aluminium prices were edging down towards quarter-end. A loss of NOK 75 million on metal hedges was realised in the quarter. Delivered volume totalled 80,000 tonnes. The new anode factory in Mosjøen underwent testing during the quarter, generating higher costs than it will under normal operation.

While the energy business reported satisfactory profit in the fourth quarter of 2007, profit from trading was significantly lower than the very strong figure recorded in the same period last year. Heavy precipitation and high reservoir inflow enabled hydropower production of 907 GWh for Elkem’s operation in Norway in the fourth quarter, 70 GWh higher than in the same period last year. Production was curbed towards quarter-end when water conservation incentives were stronger. Elkem’s resource situation was significantly stronger at the end of the fourth quarter than is normal for the time of year. The system price on the Nordic market rose through the quarter from 28.1 øre/kWh in October to 36.9 øre/kWh in December. The Saudefaldene development project, to be completed in the course of 2008, will increase capacity by a total of about 600 GWh per year.

Due to higher recognised costs at Elkem Solar, the silicon-related units reported somewhat weaker overall profit than in the fourth quarter of 2006. The market for silicon metal strengthened further in the fourth quarter while the market for ferrosilicon stabilised at the level in effect at the start of the quarter. The construction of the industrial plant for Elkem Solar at Fiskaa in Kristiansand continued to make good progress in the fourth quarter. Overall investment costs are expected to be as previously announced, and start-up is expected towards the end of the second half of 2008. Recognised costs for Elkem Solar were NOK 76 million in the fourth quarter, and are expected to rise due to the running-in of the plant to about NOK 100 million per quarter in 2008 until metal deliveries start towards the end of 2008.

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