Elkem recently released its fourth quarter financial report for 2023. According to the report, Elkem achieved a quarterly revenue of 8.436 billion Norwegian Kroner (approximately $797 million), representing a 7% increase from the third quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) reached 632 million Norwegian krone (approximately $302 million), up 18% from the third quarter.

The significant growth in performance was primarily attributed to the strong performance of the organic silicon division.

Despite the sluggish organic silicon market conditions in 2023, Elkem benefited from lower raw material costs, increased sales of specialty products, and internal improvement plans, leading to a notable improvement in the performance of the organic silicon division and a positive EBITDA turnaround.

However, the silicon products division saw a slight decline in the fourth quarter compared to the third quarter, mainly due to lower contract prices. Additionally, losses totaling 85 million Norwegian Kroner were incurred from the maintenance shutdown of the Iceland plant and a fire incident at the Salten plant in Norway.

While the carbon solutions division experienced a decrease in sales volume in the fourth quarter, revenue reached record highs, contributing to the best annual performance in history.

Elkem's CEO, Helge Olsen, highlighted the challenging macroeconomic environment in 2023, characterized by high inflation, interest rate hikes, slow economic recovery in China, and geopolitical instability. Despite the performance decline in 2023, Olsen expressed optimism in achieving financial goals throughout the economic cycle based on strong revenue growth, profitability, and solid financial standing.

Looking ahead to the first quarter of 2024, Elkem anticipates continued market challenges, particularly in addressing weak demand, especially in the organic silicon sector. The company is focused on further improving EBITDA to counter the insufficient demand, with expectations of continuing severe issues in the organic silicon market. While Chinese market demand is projected to rise, overcapacity remains a prevalent issue, keeping product prices under pressure. As destocking approaches its conclusion, sales of specialty products may see growth.

This article summarizes Elkem's recent financial performance and outlook for the coming quarters, emphasizing the company's efforts to navigate through market challenges and maintain financial stability.

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