MOSCOW (MRC) -- Elkem (Oslo, Norway) has recorded net losses of 97.0 million Norwegian krone (USD10.5 million) in the third quarter compared with net profits of NKr220 million in the same period of 2019, said Chemweek.
The result is due to financial expenses of NKr157 million including net interest expenses, losses linked to negative currency effects, and other financial expenses, the company says.
Revenue increased 6% year on year (YOY), to NKr5.89 billion driven mainly by the company's silicones division and explained by higher sales volumes and the integration of Polysil, Elkem says. All divisions reported higher YOY sales volumes despite the challenging market conditions, the company says. However, EBITDA and EBIT fell by 20% and 65%, to NKr512 million and NKr99 million, respectively, due to low selling prices and lower sales of specialty products, Elkem says.
Silicon product sales increased almost 1% YOY, to NKr2.67 billion on 6% higher volumes. The business's EBITDA declined 25% YOY, to NKr124 million. Sales of Elkem’s carbon solutions business grew 5% YOY, to NKr452 million, on volumes almost 7% higher. Carbon solutions’ EBITDA went up 56% YOY, to NKr111 million.
The company says there are signs of recovery, but that the market outlook is still characterized by uncertainty. “Silicones demand in China is expected to remain stable, but the price development is uncertain as construction markets are entering low season. Silicones demand outside of China shows signs of recovery,” Elkem says. The market for carbon products is expected to remain stable, the company says.
To address the ongoing economic uncertainty caused by COVID-19, Elkem says it is working to accelerate cost reductions, optimize investments, and leverage on strong market positions.
As MRC informed earlier, Elkem (Oslo, Norway) says it has received 10.0 million Norwegian kroner (USD1.1 million) in financial support from Enova (Trondheim, Norway), a state enterprise owned by the Norwegian Ministry of Climate and Environment, to fund initial planning for a potential large-scale battery materials plant in Norway.
We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.