Elkem
Elkem's first-half operating revenues totalled NOK 5,674 million (NOK 4,784 million)1. EBITA was NOK 433 million, down NOK 379 million on the same period last year. Elkem's operating revenues in the second quarter were NOK 2,966 million (NOK 2,351 million)1. EBITA was NOK 216 million, down NOK 65 million on the same period last year. Higher recognised costs at Elkem Solar accounted for NOK 53 million of the profit reduction in the second quarter and for NOK 103 million so far this year.
As in the first quarter, EBITA from the primary aluminium business in the second quarter was down on last year's figure, mainly due to a weaker USD and higher power, freight and raw material costs. The increased cost base was not sufficiently compensated for by higher prices since 34 % of the production was hedged at lower prices. The average price of aluminium for three-month delivery on the London Metal Exchange (LME) in the quarter was USD 2,988 compared with USD 2,799 in the second quarter of 2007. A loss of NOK 73 million on metal hedges was realised in the second quarter. In the second half-year the hedged volume is somewhat higher and the hedged price somewhat lower than in the first half. In the second quarter delivered volume totalled 88,000 tonnes (100 %), which is 10 % higher than the same period in 2007.
The energy business reported somewhat higher EBITA than in last year's second quarter. EBITA from trading was NOK 16 million, which was NOK 36 million more than in the same period last year. However, EBITA from trading for the first half as a whole was a negative NOK 38 million, which is NOK 147 million less than in the same period last year. This is due to a loss on energy trading in the first quarter of 2008 compared with the large gain posted in the same quarter of 2007. Production in the quarter was 543 GWh, which is 181 GWh lower than in the same period last year. The reduction is due to planned maintenance at the Salten hydropower plant and lower production at Sauda due to ongoing expansion work.
The silicon-related units reported weaker overall EBITA than in last year's second quarter due to higher recognised costs of NOK 53 million at Elkem Solar. Both silicon and ferrosilicon metal are seeing higher market prices. The effect on silicon metal profits is however curbed by price lag from a number of long sales contracts and by higher raw material prices. Recognised costs at Elkem Solar came to NOK 85 million in the second quarter and to NOK 162 million in the first half-year, which is NOK 103 million more than at the same point in 2007. Construction of the industrial plant in Kristiansand continued to make good progress in the quarter. Overall investment costs are expected to be as previously announced, and start-up is anticipated in the second half of 2008.
1 The figures in brackets refer to the corresponding period of the previous year.
2 Excluding acquisitions, divestments and currency translation effects.
Elkem reports
2nd quarter 2010
1st quarter 2010
4th quarter 2009
3rd quarter 2009
Annual report 2009
EHS report 2009
Sustainability Report 2009
Elkem
- Elkem is one of the world's leading companies in the environment-friendly manufacture of metals and materials.
- Its main products are aluminium, energy, silicon metal, special ferrosilicon alloys for the casting industry, carbon and microsilica. Elkem has also invested heavily in the solar industry.
- The company has manufacturing facilities in Europe, North and South America, Africa and Asia, as well as a comprehensive network of sales offices and agents in the major markets.