Elkem : Strong quarterly result and good market conditions

In the second quarter of 2021, Elkem delivered all-time high operating income
for the third consecutive quarter and another strong quarterly result. Market
conditions are good in all of Elkem's main markets with strong demand and high
prices. The group's financial position is strong and the capital increase in
April provides an excellent platform for further growth.

Elkem's total operating income for the second quarter 2021 was NOK 7,332
million, which was all-time high for the third consecutive quarter and up 25%
from the corresponding quarter last year. Earnings before interest, taxes,
depreciation and amortisation (EBITDA) amounted to NOK 1,371 million in the
quarter, which was more than doubled compared to second quarter 2020. Earnings
per share (EPS) was NOK 0.98 in the quarter, and NOK 2.15 YTD-2021.

"Elkem is in a very strong position. In the second quarter, we delivered record
sales and more than doubled our earnings compared to the same period last year.
I want to give credit to our entire global team for this achievement. We see a
positive market outlook and continue our work to position Elkem for the future,"
says Helge Aasen, Elkem's interim CEO.

Market conditions are strong across all Elkem's three divisions. The Silicones
division has seen good demand and high prices during the second quarter 2021.
The result has improved significantly against second quarter last year, despite
higher raw material costs and scheduled maintenance stops both in China and
France. Silicon Products also see good demand from steel and automotive. That
combined with low supply has resulted in a tight market balance and increased
market prices for silicon and ferrosilicon. The market for carbon products was
good. Demand is still high but also here raw material costs are up.

CEO Michael Koenig handed in his resignation and left Elkem with effect from 30
June 2021. The board has initiated the process to find Elkem's new CEO. Helge
Aasen will act as the interim CEO.

"Elkem's strategy remains firm. In the interim period the board and management
will focus on implementation of the ongoing strategic projects, including
silicones expansions and the battery materials project," says Aasen.

The announced expansion of Silicones Xinghuo has started and the cornerstone for
the project was laid in April 2021. The project is scheduled to be completed
within three years and will strengthen Elkem's position in the fastest growing
markets in Asia Pacific. The project is an integral part of Elkem's growth and
specialisation strategy and will improve profitability and environmental
performance.

The pilot plant for battery materials in Kristiansand has started operations and
qualification processes with prospective customers have reached advanced levels.
A fast-track option is being considered to address the strong demand from
customers and shorten time to market. On that basis the exact timing of the
financial investment decision is pending.

The group's equity as at 30 June 2021 amounted to NOK 16,045 million, which gave
a ratio of equity to total assets of 46%. Net interest-bearing debt was NOK
5,630 million, which gave a ratio of net interest-bearing debt to EBITDA of 1.4
times. The net interest-bearing debt and leverage ratio has been significantly
reduced due to the capital increase in April and the improvements in results.
Elkem had cash and cash equivalents of NOK 5,998 million as at 30 June 2021 and
undrawn credit lines of around NOK 3,900 million.

The market sentiment is strong across all divisions. The market momentum for
silicones is strong and prices are at high levels in China and expected to
increase in Europe and the US. However, the high price level in China are not
seen as sustainable. Market prices for silicon- and ferrosilicon-based products
are stable at a high level due to tight market conditions. However, slower
demand is expected in the third quarter due to holiday effects. Carbon products
continue to benefit from strong steel and ferroalloys markets, but raw material
costs are increasing. General cost increases and constraints in global logistics
and raw material supply are a concern going forward.

Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: [phone]
Email: [e-mail]

Fredrik Norman
VP Corporate Communications & Public Affairs
Tel: [phone]
Email: [e-mail]

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

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange