STOCKHOLM, April 27, 2021 /PRNewswire/ -- In the first quarter of 2021, Elkem delivered all-time high operating income and the best quarterly result since the third quarter 2018. The strong results reflected Elkem's growth and specialisation strategy in a market with attractive fundamentals and its strong culture for operational excellence. On 26 April, Elkem approved a strategic expansion in China, the world's fastest-growing silicones market. The NOK 3.8 billion project will further support Elkem's growth and specialisation strategy.Elkem's total operating income for the first quarter 2021 was NOK 7,193 million, which was another all-time high and up 24% from the corresponding quarter last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to NOK 1,231 million in the quarter, which was more than doubled compared to first quarter 2020 and the best since the third quarter 2018. Earnings per share (EPS) was NOK 1.17 in the quarter."Elkem is starting 2021 from a strong position. In the first quarter, we achieved record sales and delivered our best quarterly result since the third quarter 2018. We see a positive market sentiment for all divisions and continue to position Elkem for the future in line with our strategy. Today, we also announce a strategic expansion in China which represents a step-change for Elkem's position as a leading supplier in the world's fastest growing silicones market," says Elkem's CEO, Michael Koenig.Elkem's main business segments all showed a strong development in the first quarter 2021. Strong demand in all major regions has positively impacted sales volumes and realised prices. Silicones prices in China have increased to attractive levels during the first quarter. In March, Elkem also announced global price increases for silicones. For silicon and ferrosilicon the market prices have risen consistently during the first quarter and reached the highest levels in several years. Also, the market for carbon products was good driven by strong global steel markets.Elkem's operational performance was strong in the quarter with high and stable production. The productivity improvement programme with the target to realise annual cost improvements of more than NOK 350 million was still progressing ahead of plan and reached an annual run rate of NOK 230 million by end of first quarter.
Elkem continues to deliver on its growth strategy and ambition to be a leading integrated provider of silicones solutions. On 26 April 2021, the board approved a NOK 3.8 billion strategic expansion of the Xinghuo Silicones plant in China to strengthen Elkem's position in the fastest growing silicones market and to further support the specialisation strategy. In addition to supporting Elkem´s specialisation and growth strategy, the project will also significantly improve Elkem's overall cost position and environmental profile based on state-of-the-art technology.The project will increase the plant's production capacity by more than 50% for high quality upstream products and enable Elkem to further drive specialty volumes by increasing access to high purity products and critical by-products where Elkem has developed an attractive backlog of downstream products to offtake upstream volumes. The project will also significantly improve the environmental performance by reducing the energy consumption by 57%, reducing use of raw materials by 11% and giving a 30% reduction of solid waste. Improved environmental performance was one of the key decision parameters for Elkem, in line with the company's high ambition level on Environment, Social and Governance (ESG) factors.During the first quarter, Elkem also successfully raised MNOK 1,250 in the bond market for refinancing of debt maturities December 2021. The bond transaction was significantly oversubscribed and demonstrated Elkem's strong financial position.Elkem's advanced battery materials activities are proceeding according to plan. The pilot plant in Kristiansand was commissioned in April 2021 and has started industrial scale production. Qualification processes are ongoing with several battery cell producers. The potential large-scale battery materials plant at Herøya represents a significant green value creation opportunity and Elkem is currently in the process to invite external investors to take part in the project. This will enable a swift development, and position Elkem as a significant and attractive supplier to the battery industry. The group's equity as at 31 March 2021 amounted to NOK 13,440 million, which gave a ratio of equity to total assets of 41%. Net interest-bearing debt was NOK 7,668 million, which gave a ratio of net interest-bearing debt to EBITDA of 2.3 times. The leverage ratio has been improved over the past two quarters due to higher EBITDA and lower net-interest bearing debt. Elkem had cash and cash equivalents of NOK 4,183 million as at 31 March 2021 and undrawn credit lines of close to NOK 3,900 million.
The market sentiment is positive for all divisions and Elkem will continue to develop its market positions and focus on sustainable growth. The silicones market is strong and market reference prices in China are expected to remain at attractive levels in the second quarter. The announced global price increases will gradually become effective from the second quarter. The result for the Silicones division will be impacted by maintenance stops in China and France. The combined EBITDA effect is limited to NOK 150 million. Demand and market prices for silicon- and ferrosilicon-based products are expected to level out. However, realised contract prices will increase due to time-lag effects. Steel and ferroalloys markets are still strong, giving continued attractive market conditions for carbon products.For further information, please contact:Odd-Geir Lyngstad, VP Finance and Investor RelationsTel: +47 976 72 806Email: email@example.comFredrik Norman, VP Corporate Communication and Public AffairsTel: +47 918 66 567Email: firstname.lastname@example.orgAbout ElkemElkem is one of the world's leading providers of advanced material solutions – shaping a better and more sustainable future. Elkem 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, Elkem's global team of 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.comThis information was brought to you by Cision https://news.cision.com
https://news.cision.com/elkem/r/delivering-on-growth-and-profitability---strategic-expansion-in-china,c3333708The following files are available for download:https://mb.cision.com/Public/16930/3333708/a08e9406f1c6bee3.pdfElkem ASA - 1Q-2021 - Reporthttps://mb.cision.com/Public/16930/3333708/8fb53b9dbab9bb1a.pdf
Elkem ASA - 1Q-2021 - Press releasehttps://mb.cision.com/Public/16930/3333708/a08334225acb5e77.pdfElkem ASA - 1Q-2021 - PresentationSOURCE Elkem
A cargo ship is moored at the Piraeus Container Terminal, near Athens, Greece, September 20, 2017. REUTERS/Alkis Konstantinidis/File PhotoBRUSSELS, June 30 (Reuters) - The...
CHONGQING, China, April 24, 2021 /PRNewswire/ -- Hongkong Land today officially opened Kidzplorer, a STEAM (Science, Technology, Engineering, Arts and Mathematics) oriented play-centre now fully integrated into its first wholly-owned commercial development project in Southwest China: "The Ring, Chongqing". Spanning the next five years, this new US$33 million investment will be rolled out to other cities across the Chinese mainland. Together with "The Ring" series, Kidzplorer is a value-adding enhancement that underlines Hongkong Land's commitment to driving strategic innovation, forging the future of Chongqing Liangjiang New Area and beyond. The ultimate experience is one that is designed to inspire the community and visitors, who can subsequently aspire to a better tomorrow. Mr Robert Wong, Chief Executive of Hongkong Land, said, "With a history of more than 130 years, we constantly seek the next opportunity to respond to the changing preferences and demands of our tenants and customers by introducing innovative concepts and fresh offerings, with a view to elevating the value of our portfolio for the Chinese mainland and across the region. Kidzplorer represents Hongkong Land's breakthrough in providing innovative family-friendly amenities into our retail experiences, answering the needs of today's customers, many of whom are parents who visit along with their children."Mr Thomas Tam, Director & Head of Asset Management, Commercial Property of Hongkong Land, said, "Our latest development in Chongqing represents our unwavering dedication to innovation, coupled with our desire to enhance the offerings available across our portfolio. An elevated concept of the ever-growing STEAM trend across China and Asia, Kidzplorer at 'The Ring, Chongqing' features family-orientated facilities present in that not only enhance Yorkville, Hongkong Land's high-end residential development in the neighbourhood, but together they provide a holistic offering which aims to set a new benchmark for contemporary urban development, with the goal of serving future generations to come."Kidzplorer at "The Ring, Chongqing" is designed by internationally-acclaimed theme park design firm JRA and Star Group. It occupies a net floor area of nearly 3,000 sq. m. and offers a nine-zone play area, a STEAM classroom, a family café and party rooms, alongside a retail store featuring a range of STEAM concept toys and products. Kidzplorer uses the latest technology to ensure the ultimate experience for all visitors, including smart location wristbands worn by children visitors that support real-time tracking.Hongkong Land today also celebrated the grand opening of "The Ring, Chongqing", its inaugural lifestyle retail series. It is the Group's first wholly-owned commercial development project in Southwest China. For details, please refer to its press release.
KidzplorerFeaturing edutainment as its core concept, Kidzplorer is a STEAM-oriented play centre developed by HongKong Land, supporting children's learning and self-fulfilment through customised scientific installations and fun entertainment facilities. By integrating popular science with play, Kidzplorer helps parents discover their children's creativity and potential.
Hongkong Land Hongkong Land is a major listed property investment, management and development group. Founded in 1889, Hongkong Land's business is built on excellence, integrity and partnership. The Group owns and manages more than 850,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong, Singapore, Beijing and Jakarta. Its properties attract the world's foremost companies and luxury brands. The Group's Central Hong Kong portfolio represents some 450,000 sq. m. of prime property. It has a further 165,000 sq. m. of prestigious office space in Singapore mainly held through joint ventures, a luxury retail centre at Wangfujing in Beijing, and a 50% interest in a leading office complex in Central Jakarta. The Group also has a number of high quality residential, commercial and mixed-use projects under development in cities across China and Southeast Asia. In Singapore, its subsidiary, MCL Land, is a well-established residential developer.Hongkong Land Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. The Group's assets and investments are managed from Hong Kong by Hongkong Land Limited. Hongkong Land is a member of the Jardine Matheson Group.
For further information, please contact: Hongkong LandJennifer Lam +852 2842 8222 email@example.com Charles Ngai +852 2842 8541 firstname.lastname@example.orgGolinMaxson Tsang +852 2501 7907 email@example.comKatherine Ng +852 2501 7925 firstname.lastname@example.orgSOURCE Hongkong Land