Silicon steel supplier Elkem has posted a seventh consecutive quarter of climbing earnings, leading to a report efficiency in Q2 2022.
Elkem’s efficiency was primarily pushed by sturdy gross sales of silicon merchandise whereas the agency’s carbon options division additionally posting its greatest quarter outcomes ever.
Working earnings for interval reached NOK12,326 million (US$1.2 million), a 68% improve from the earlier quarter, whereas BITDA virtually trebled year-on-year to NOK3,924 million.
The silicon division’s sturdy outcomes got here regardless of Covid restrictions in China lowering demand of silicones, whereas a rise in capability resulted in greater inventory ranges and falling costs for silicones.
Regardless of macro-economic uncertainties available in the market, the corporate expects to see “strong demand” going into the third quarter with silicon demand in China step by step bettering as Covid restrictions are eased.
Moreover, logistics and uncooked materials provide will problem the carbon options division however will proceed to learn from sturdy market demand.
Helge Aasen, CEO at Elkem, mentioned: “Elkem has continued to learn from sturdy aggressive positions, primarily based on our built-in enterprise mannequin, operational excellence, beneficial vitality prices and entry to vital uncooked supplies.”
The corporate continues its technique to give attention to product specialisation and “sturdy price positions”, added Aasen.