2019-03-11
Mar. 11, 2019 - With more than 110 years of
history, 2018 has been a milestone for Elkem with the re-listing of the company
on Oslo Børs on 22 March and large acquisitions in China.
Operating income for the Elkem group
amounted to NOK 25,887 million compared to NOK 21,403 million in 2017. The
operating income increased by 21%, due to higher income from all divisions.
Silicones operating income increased by 30% due to increased sales volumes and
higher prices. Silicon Materials operating income increased by 3% supported by
favourable prices, however lower sales volumes. Foundry Products operating
income increased by 20% due to higher prices and improved sales volume and mix.
Carbon managed to increase operating income by 20% largely due to improved
sales mix.
Elkem’s EBITDA ended at strong NOK 5,793
million compared to NOK 3,188 million in 2017. The corresponding margin
improved from 15% in 2017 to 22% in 2018. The improvement in EBITDA was
supported by positive development in earnings from all segments, and in
particular Silicones explaining 78% of the improved EBITDA for the year.
Silicones experienced improved production and sales mix, in addition to
favourable prices in China for most part of the year. Silicon Materials and
Foundry Products also contributed to improved earnings, which were largely
driven by improved sales prices countered only partly by higher raw material
prices. Carbon managed to improve earnings helped by price increase more than
offsetting increased raw material prices in the same period.
Operating profit was NOK 4,142 million in
2018 compared to NOK 1,971 million in 2017. Amortisations and depreciations was
NOK 1,263 million in 2018 compared to NOK 1,244 million in 2017. Impairment
losses was NOK 8 million in 2018 compared to NOK 17 million in 2017. Other
items was NOK 380 million negative in 2018 compared to NOK 44 million positive
in 2017. Other items are largely related to change in fair value of power
contracts and IPO expenses.
Profit before income tax ended at NOK 3,792
million for the year compared to NOK 1,519 million in 2017. Share of profit
from equity accounted financial investments was NOK 23 million negative in 2018
related to Elkem ASA’s share of the Energy Recovery project at Salten
Energigjenvinning AS, compared to NOK 1 million negative in 2017. Finance
income was NOK 42 million and foreign exchange gains was NOK 19 million in 2018
compared to NOK 30 million and NOK 8 million negative in 2017 respectively.
Finance expenses were NOK 388 million negative compared to NOK 474 million
negative last year. The reduced net interest bearing debt throughout 2018
resulted in lower finance expenses.
The consolidated profit for the year was
NOK 3,367 million, including NOK 425 million tax expense for the year, giving
an effective tax rate of 11%. The low effective tax rate was attributed to
utilisation of tax loss carry forward in China and France.
The earnings per share was NOK 5.74 per
share in 2018 compared to NOK 2.08 per share in 2017.
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