2024-07-12 16:31:05 ET
Elkem ASA (ELKEF)
Q2 2024 Earnings Call Transcript
July 12, 2024, 03:00 AM ET
Company Participants
Odd-Geir Lyngstad - VP of IR
Helge Aasen - CEO
Morten Viga - CFO
Conference Call Participants
Magnus Rasmussen - SEB
Presentation
Odd-Geir Lyngstad
Hello, and good morning. It's a pleasure welcoming you to Elkem's Second Quarter and Half Year Results Presentation. My name is Odd-Geir Lyngstad. I'm Vice President for Investor Relations in Elkem. With me today I have CEO, Helge Aasen, and CFO, Morten Viga to take us through a business update, the financial results for the second quarter, and the outlook for the third quarter. After Helge and Morten's presentations, we will open for Q&A. We will start with the business update, so please Helge, the word is yours.
Helge Aasen
Thank you, Odd-Geir, and good morning everyone. The result for the second quarter was in liability. While market conditions remain challenging, the demand is still relatively weak and sales prices remain on a low level, particularly is that the case for silicones in China. We are reporting an EBITDA in the second quarter slightly above NOK1 billion, which gives an EBITDA margin of 12%. The Silicones division reported improved results compared to both second quarter last year and first quarter this year. The overall market sentiment as mentioned is still weak. However, there are some signs of improvement in demand. The division is also working systematically to improve cost and operational performance and these initiatives are paying off. Silicon products delivered a stable good result based on strong cost positions but had the low sales of silicon metal in the quarter. Carbon solution has again delivered strong quarterly results. Sales prices were down but the division had a favorable cost development and good sales volumes. So -- and the profit after tax for the quarter was NOK881 million, which gave earnings per share of NOK1.65.
Moving on to ESG, we are very proud of our strong performance within ESG and this is recognized by good ratings from CDP, from EcoVadis and Standard & Poor's, S&P. Elkem has also received recognition with an A+ from Position Green and we were awarded second place and silver from the Farman prize. The most important target is obviously to reduce CO2 emissions, primarily, is this generated in the production of silicon and ferrosilicon in Elkem. Our target remains, it's our ambition to reduce absolute emissions with 28% by the end of 2031, which corresponds to a product carbon footprint reduction of 39% when we factor in growth during this period. CO2 emissions were down 8% in 2023 compared to 2022, mainly explained by somewhat lower production. So, we are doing extensive research as well to remove CO2 emissions from the production process....
Read the full article on Seeking Alpha
For further details see:
Elkem ASA (ELKEF) Q2 2024 Earnings Call Transcript