Elkem Silicones reports 177% earnings growth in 2021

Oslo – Elkem ASA’s silicones division has finished 2021 strongly, reporting significant growth in both sales and earnings (EBITDA) for the year. 

The division reported total sales of NOK17,429 million (€1,734 million) for the year, up 36% compared to 2020, Elkem announced 9 Feb.

Earnings rose 177% year-on-year to reach NOK3,672 million, helped by higher sales prices and volumes.

In the fourth quarter of 2021, the segment “more than doubled” earnings to NOK1,344 million, on 34% higher sales of NOK5,269 million.

Elkem linked the fourth-quarter increase in sales and earnings to higher prices, particularly in China at the beginning of the quarter. 

However, Elkem noted that higher raw material costs mainly for silicon, and lower sales volumes partly offset the high sales prices in the final quarter of the year. 

“The sales volumes in the quarter were strong, but somewhat down due to a weaker construction market in China,” it added. 

Elkem also said that it is implementing price increases for silicones specialities from first quarter 2022, but added that the current high price level for silicon metal “could more than offset" the measure.

Elkem’s silicones division produces and sells a range of silicone-based products across various sub-sectors including release coatings, engineering elastomers, healthcare products, speciality fluids, emulsions and resins.