Elkem silicones back in black as volumes improve

Oslo – Elkem ASA’s silicones division has reported strong growth in the third quarter of 2024, helped largely by higher volumes.

The unit reported earnings (EBITDA) of NOK202 million (€17 million) for the quarter ended 30 Sept, up from a loss of NOK268 million in the same period last year.

Sales were up 20% year-on-year at NOK3.8 billion, as volumes grew 36% to 105 kilotonnes, Elkem reported 24 Oct.

For the first nine months of the year, the segment reported a 2% year-on-year increase in sales to NOK11 billion, helped by a 9% growth in volumes to 276 kilotonnes.

Earnings for the period stood at NOK145 million, up from a loss of NOK672 million reported in the first nine months of 2023.

Elkem linked the improved earnings to higher sales volume, operational improvements and the positive effects from the new production line in China.

“While key markets remain weak, Elkem continues to strengthen profitability,” said CEO Helge Aasen commenting on the results.

Silicones markets, explained Aasen, remain challenging, but Chinese sales prices for commodity products are improving.

Furthermore, Elkem also implemented price increases on its speciality grades, the CEO added.

Elkem also reported that it made a “strategic investment” in a silicone project in France during the third quarter without providing further details.