Elkem finishes 2021 strong, reports 177% earnings growth

OSLO—Elkem A.S.A.'s silicones division has finished 2021 strong, reporting significant growth in both sales and earnings (EBITDA) for the year.

The division reported total sales of $1.9 million (NOK 17.4 million) for the year, up 36 percent compared to 2020, Elkem announced Feb. 9.

Earnings rose 177 percent year-on-year to reach $413,000, helped by higher sales prices and volumes.

In the fourth quarter of 2021, the segment "more than doubled" earnings to $151,000 on 34 percent higher sales of $593,000.

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

Elkem noted, however, 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 specialties from first quarter 2022, but it 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, specialty fluids, emulsions and resins.