Elkem Silicones lifted by higher volumes, operational efficiencies

Oslo - Elkem Silicones has reported a double-digit increase in earnings (EBITDA) for the third quarter, despite lower sales.

The division, currently under strategic review, reported sales of NOK3.6 billion (€310 million), down 6% from NOK3.8 billion in the third quarter last year, said Elkem 23 Oct.

Earnings for the unit rose 23% year-on-year to NOK202 million, driven by cost improvements and higher volumes.

Elkem noted that the 10% increase in volumes during the quarter, driven largely by Asia-Pacific, was offset by lower commodity sales prices.

Year-to-date, the division reported sales of NOK11.4 billion, up 4% compared to the first nine months of 2024.

Earnings came in at NOK696 million, up 380% compared to the same period last year.

Elkem said overcapacity in the silicones market hampered price recovery from “unsustainable low levels”.

While sales prices remained low, results were supported by “strong operational performance and cost improvements” as well as higher volumes.

According to Elkem, demand in China continues to be weak, especially in the construction sector.

Demand for commodity silicones in the EU and the US were negatively impacted by changing tariff polices while speciality silicones saw “good demand” overall.

Meanwhile, Elkem provided an update of the silicones division’s strategic review.

The previously announced exclusive sales process is expected to close in the first half of 2026, it said. (ERJ report)