Oslo 27 October 2021

In the third quarter 2021, Elkem delivered its best quarterly result ever, with
earnings more than four times higher than the same period last year (EBITDA).
Market conditions have been extraordinary with all-time high prices across
several products lines and regions. Due to its integrated business model and
attractive market positions, Elkem has been well positioned to benefit from the
strong market momentum. In addition, Elkem launched a new ambitious climate
roadmap in the quarter, with an aim of delivering a 39 per cent reduction of its
product carbon footprint by 2031.

Elkem's total operating income for the third quarter 2021 was NOK 8,796 million,
which was all-time high and up 49% from the corresponding quarter last year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted
to NOK 2,131 million in the quarter, which was as much as 316% higher than third
quarter 2020. Earnings per share (EPS) was NOK 2.16 in the quarter, and NOK 4.34
YTD-2021.

"Elkem is currently experiencing extraordinary markets and delivering strong
results. So far this year, we have almost tripled our earnings compared to the
same period last year, and we expect another strong result in the fourth
quarter. Our focus now is to deliver for our customers and drive strong
performance while also positioning Elkem for the future in line with our long
-term strategy of growth driven by operational excellence and increased
specialisation. We also continue our work to further step up our performance on
Environment, Social and Governance (ESG) issues, digital transformation and
battery materials," says Helge Aasen, Elkem's CEO.

As announced on 18 October, Elkem's board of directors and Helge Aasen have
agreed that Aasen will continue as CEO of Elkem, after serving as interim CEO
since June 2021. Helge Aasen has previously served as CEO of Elkem from 2009 to
2019. He has a broad industrial experience after working in most of the
company's different functions for nearly 30 years.

Market conditions have been extraordinary in the third quarter, particularly for
Elkem's two largest divisions; Silicones and Silicon Products. Elkem has seen
strong demand in all regions and steady price increases for its main product
categories. The group has kept normal production in the quarter, while many
other producers have been hampered by low raw material availability,
transportation constraints, high power prices and in some cases energy
curtailments. The combination of strong demand and disruptions on the supply
side have pushed market prices up to new record levels.

Elkem has a strong business model with an integrated value chain and a highly
competent global workforce. The group is therefore in a good position to benefit
from the current market situation. In addition, access to reliable and renewable
electricity is a key competitive advantage and paramount to ensure stable
production, predictable cost development and the lowest possible CO2 emissions.
The recent market trends, which could mark a structural shift for global silicon
markets, will further strengthen Elkem's long-term competitive position.

The focus on CO2 emissions is becoming more critical for all types of industry
and Elkem's response has been to launch a new ambitious climate roadmap for the
group. "Elkem aims to be part of the solution to combat climate change - and to
be one of the winners in the green transition. From an already favourable
position where 83% of our electricity consumption is based on renewable energy,
we aim to reduce our fossil CO2 emissions by 28% from 2020-31 while growing our
supplies to the green transition - thereby delivering a 39% improvement in the
carbon footprint of our products in the same period. Elkem's long-term goal is
net zero emissions by 2050," says Aasen.

The board has approved an investment in Elkem's silicones plant in Roussillon,
France, amounting to NOK 350 million. This project will further develop and
strengthen Elkem's specialty business in Europe, the Middle East and Africa
(EMEA) and the Americas and will be finalised in 3Q-2023. There is a structural
deficit of siloxane in EMEA and further capacity is required to meet increasing
demand from customers. The project will also improve Elkem's cost position and
environmental performance through debottlenecking, better energy efficiency and
upgraded wastewater treatment.

The group's equity as at 30 September 2021 amounted to NOK 17,512 million, which
gave a ratio of equity to total assets of 46%. Net interest-bearing debt was NOK
5,421 million, which gave a ratio of net interest-bearing debt to EBITDA of 1.0
time. The net interest-bearing debt and leverage ratio have been significantly
reduced due to the strong improvement in results and the capital increase in
April. Elkem had cash and cash equivalents of NOK 7,176 million as at 30
September 2021 and undrawn credit lines of around NOK 3,200 million.

There is strong underlying demand for Elkem's products going into the fourth
quarter and industry supply continues to be hampered by energy and raw material
constraints. Elkem is well positioned to benefit from the current market
conditions despite inflationary pressure, due to its integrated value chains in
Asia and Europe/US. Silicones markets are expected to remain tight in the fourth
quarter. Due to time lag versus market prices, Elkem expects to realise higher
sales prices in the quarter both for commodities and specialities. Market prices
for silicon- and ferrosilicon-based products are at all-time high. Elkem is
benefitting from attractive positions and expects to realise higher sales prices
due to time-lag in sales contracts. Carbon products continues to benefit from
strong steel and ferroalloys markets.

For further information, please contact:

Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.com

Fredrik Norman
VP Corporate Communications & Public Affairs
Tel: +47 918 66 567
Email: fredrik.norman@elkem.com

About Elkem
Elkem is one of the world's leading providers of advanced material solutions
shaping a better and more sustainable future. The company develops silicones,
silicon products and carbon solutions by combining natural raw materials,
renewable energy and human ingenuity. Elkem helps its customers create and
improve essential innovations like electric mobility, digital communications,
health and personal care as well as smarter and more sustainable cities. With a
strong track record since 1904, its global team of more than 6,800 people has a
joint commitment to stakeholders: Delivering your potential. In 2020, Elkem was
rated among the world's top 5% on climate and achieved an operating income of
NOK 24.7 billion. Elkem is listed on the Oslo Stock Exchange (ticker: ELK).
www.elkem.com

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