Elkem
In the fourth quarter, Elkem's operating revenue came to NOK 2,410 million (NOK 2,611 million)2. EBITA1 was NOK 364 million, an improvement of NOK 119 million relative to the same period in 2007. Recognised costs at Elkem Solar in the fourth quarter were NOK 138 million, an increase of NOK 62 million relative to the same period in 2007. Higher profits from energy made a positive contribution of NOK 147 million. The other silicon-related units improved their profits by NOK 34 million relative to the fourth quarter of 2007. For the year in its entirety, the operating revenue ended up at NOK 8,939 million, up from NOK 7,636 million in 2007. EBITA1 ended up at NOK 942 million compared with NOK 1,051 million in 2007.
The energy business had a significantly higher profit than in the fourth quarter of 2007. The production during the quarter amounted to 1,043 GWh, 136 GWh higher than for the same period in 2007. The higher production was due to increased capacity from the new plant at Sauda, greater amounts of precipitation in October and a planned reduction of reservoirs as a result of price expectations. Simultaneously, higher prices than in the same period last year made a strong contribution to profit from the sale of generated power. EBITA from trading was positive and amounted to NOK 30 million, NOK 13 million lower than in the same period in 2007. For the year 2008 in its entirety, EBITA from trading amounted to NOK -52 million (NOK 228 million)2.
For the silicon-related units, the aggregate profit was lower than in the fourth quarter of 2007, due to NOK 62 million in higher recognised costs at Elkem Solar. The recognised costs for Elkem Solar were NOK 138 million in the fourth quarter and came to a total of NOK 381 million for the year as a whole. The construction project is mechanically completed and the start-up programme has been initiated. The prices of silicon and ferrosilicon increased significantly in 2008, but then dropped sharply again toward the close of the year. Higher prices were realised in the fourth quarter than in the same period in 2007. The contract structure in Elkem entails a certain delay in realised prices compared to market-prices. The demand declined somewhat toward the close of the quarter. The carbon business achieved a positive profit performance despite the declining demand toward the close of the fourth quarter. The sale of microsilica to the construction industry and the steel industry declined during the quarter.
1 Earnings before amortisation, write-down of inventory in Sapa Profiles, restructuring and significant impairments.
2 Figures in parentheses are for the corresponding period in the previous year.
3 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.