Reported Earnings • Jul 12
Second quarter 2026 earnings released: kr0.20 loss per share (vs kr0.17 loss in 2Q 2025) Second quarter 2026 results: kr0.20 loss per share. Revenue: kr3.71b (down 14% from 2Q 2025). Net loss: kr88.0m (loss narrowed 16% from 2Q 2025). Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 13% decline forecast for the Chemicals industry in the United Kingdom. Board Change • Jun 11
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Interim Independent Chairman Marianne Johnsen was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 30
Elkem ASA has completed a Follow-on Equity Offering in the amount of NOK 299.999997 million. Elkem ASA has completed a Follow-on Equity Offering in the amount of NOK 299.999997 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 11,111,111
Price\Range: NOK 27
Transaction Features: Regulation S; Rights Offering; Rule 144A Announcement • May 08
Elkem ASA has completed a Follow-on Equity Offering in the amount of NOK 1.5 billion. Elkem ASA has completed a Follow-on Equity Offering in the amount of NOK 1.5 billion.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 55,555,555
Price\Range: NOK 27
Transaction Features: Subsequent Direct Listing Announcement • Apr 21
CHAR Technologies Ltd. (TSXV:YES) completed the acquisition of Biocarbon Assets of Elkem ASA. CHAR Technologies Ltd. (TSXV:YES) entered into a binding asset purchase agreement to acquire Biocarbon Assets of Elkem ASA for $1 million on April 15, 2026. CHAR Tech intends to enter into a secured loan agreement with Bioveld Canada in the principal amount of $4.8 million (CAD 3.5 million). In connection with the Loan, CHAR Tech will issue an aggregate of 2 million common share purchase warrants to the Lender, subject to the approval of the TSX Venture Exchange. The proceeds of the Loan will be used to support satisfying Char Tech's obligations under the Purchase Agreement, ongoing expenses related to the Acquisition, to invest in plant upgrades and for general working capital purposes.
The Acquisition is subject to customary closing conditions and is expected to close within the next week.
CHAR Technologies Ltd. (TSXV:YES) completed the acquisition of Biocarbon Assets of Elkem ASA on April 20, 2026. Announcement • Apr 10
Elkem ASA Announces Helge Aasen to Step Down as CEO Elkem ASA announced that Chief Executive Officer (CEO) Helge Aasen will be stepping down from his role as CEO. Aasen will continue to serve as CEO, ensuring a smooth transition until a successor is appointed and in place. The nomination committee has proposed that Aasen shall be elected chairman of the Elkem board with effect from stepping down from the CEO role. Announcement • Oct 24
Elkem ASA Introduces New Biocompatible, Electro Conductive Silicone Rubber for Advanced Healthcare Devices Elkem ASA unveiled SILBIONE™ LSR Select EC 70, a next-generation medical-grade liquid silicone rubber. Designed for wearable and diagnostic devices, the material combines high electrical conductivity, certified biocompatibility, and enhanced process control, setting a new standard for precision healthcare applications. With resistivity below 10 ohm-centimeters, this new material offers ideal conductivity for wearable devices, flexible electronics and advanced sensors. Its liquid injection moldable form enables intricate designs, while its durability and flexibility ensure long-term performance in demanding environments. The material also offers proven biocompatibility, having successfully passed ISO 10993-5 cytotoxicity and ISO 10993-10 skin sensitization tests, making it well suited for applications such as prosthetics, diagnostic tools, and next-generation flexible circuits. Now commercially available, the innovation has been specifically engineered to be used with LSR Select™, Elkem's patented liquid silicone rubber technology designed for precision liquid injection molding. This unique system enables manufacturers to fine-tune cure kinetics directly in the mold, offering greater control, faster cycle times, and reduced waste -- supporting competitiveness, performance and sustainability goals. Announcement • Oct 21
Elkem Curtails Ferrosilicon Production In Norway And Iceland Due To Market Conditions Elkem ASA has announced a partial curtailment of ferrosilicon production at its plants in Rana, Norway, and Iceland due to challenging market conditions. The decision is driven by ongoing weak market conditions in Europe, which have led to rising inventory levels and lower prices. The European Union's investigation into potential safeguard measures on imports of ferrosilicon and ferroalloys has further increased uncertainty. The curtailment may result in temporary layoffs of employees as Elkem aims to reduce inventories and support a better market balance. The core product at these plants, ferrosilicon, is a critical raw material for the steel industry. Elkem's Senior Vice President for Silicon Products, Inge A. Grubben-Strømnes, emphasized the need for competitive and predictable framework conditions and continued access to the EU market for Norwegian industry. New Risk • Jul 12
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 8.5% Last year net profit margin: 12% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.5% net profit margin). Reported Earnings • Jul 12
Second quarter 2025 earnings released: kr0.17 loss per share (vs kr1.35 profit in 2Q 2024) Second quarter 2025 results: kr0.17 loss per share (down from kr1.35 profit in 2Q 2024). Revenue: kr4.33b (down 48% from 2Q 2024). Net loss: kr105.0m (down 112% from profit in 2Q 2024). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 15% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. New Risk • Jul 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. New Risk • Jun 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.05% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.05% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Reported Earnings • May 02
First quarter 2025 earnings released: EPS: kr0.21 (vs kr0.69 loss in 1Q 2024) First quarter 2025 results: EPS: kr0.21 (up from kr0.69 loss in 1Q 2024). Revenue: kr4.35b (down 44% from 1Q 2024). Net income: kr135.0m (up kr574.0m from 1Q 2024). Profit margin: 3.1% (up from net loss in 1Q 2024). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 4.3% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Apr 25
Upcoming dividend of kr0.30 per share Eligible shareholders must have bought the stock before 02 May 2025. Payment date: 12 May 2025. Payout ratio is a comfortable 9.4% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of British dividend payers (6.1%). Lower than average of industry peers (4.6%). Reported Earnings • Mar 26
Full year 2024 earnings released: EPS: kr3.20 (vs kr3.15 in FY 2023) Full year 2024 results: EPS: kr3.20 (up from kr3.15 in FY 2023). Revenue: kr17.8b (down 16% from FY 2023). Net income: kr2.03b (up 1.4% from FY 2023). Profit margin: 11% (up from 9.5% in FY 2023). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 4.2% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Announcement • Mar 15
Elkem to Showcase Sustainability Progress and Eco-Designed Offerings Elkem announced its participation in In-Cosmetics Global 2025, where it will highlight its ongoing commitment to sustainability and showcase its latest eco-designed products, PURESIL(TM) ORG 03 and PURESIL(TM) N DML 15. At the event, Elkem will discuss its advancements in sustainability, emphasizing its efforts to reduce environmental impact. The company continues to expand its specialty offerings to meet market demands and address unmet needs. This includes performance additives for sensory enhancement, pigment dispersion, and emulsification, which are designed to elevate product development across all categories. Visitors to Elkem's booth will have the opportunity to explore prototype formulations featuring the elastomer gel series, organofunctional silicones, and film formers. Experts from Europe, the Americas, and Asia Pacific will be available to answer questions, discuss projects, and explore potential collaborations. Reported Earnings • Feb 13
Full year 2024 earnings released: EPS: kr3.20 (vs kr0.11 in FY 2023) Full year 2024 results: EPS: kr3.20 (up from kr0.11 in FY 2023). Revenue: kr18.9b (down 45% from FY 2023). Net income: kr2.03b (up kr1.95b from FY 2023). Profit margin: 11% (up from 0.2% in FY 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 31% p.a. on average during the next 2 years, compared to a 4.1% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. Announcement • Feb 12
Elkem ASA Proposes Ordinary Dividend for the Year 2024, Payable on About May 12, 2025 The board of directors of Elkem ASA has decided to propose to the Annual General Meeting an ordinary dividend for 2024 of NOK 0.30 per share. Ex-dividend date: 02 May 2025, Record date: 05 May 2025 and Payment date: On or about 12 May 2025. Date of approval: 30 April 2025. New Risk • Feb 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.1x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Announcement • Nov 28
Elkem ASA Secures EUR 1.8 Million European Union Grant to Explore CO2-Free Silicon Production Elkem ASA has secured EUR 1.8 million in funding from the European Union for the groundbreaking Elkem Sicalo® (Silicon production with carbon looping) project, which aims to eliminate all CO2 emissions from silicon production. Elkem, SINTEF and NORCE are completing the first pilot phase of Elkem Sicalo® at Elkem's technology park in Kristiansand, Norway. The project entails capturing the carbon emitted from the silicon furnace and reusing it as a reductant in the silicon production process. The EU has now granted EUR 9.9 million in funding for the Horizon Europe project MECALO, which builds on Elkem Sicalo®. MECALO will develop the concept of carbon looping further for general metal production, with demonstration of zero CO2 silicon and manganese alloys. The manganese alloys producer Eramet, with its six smelters in Norway, France, the United States and Gabon, is the other metallurgical company in the consortium aiming to develop and use the technology from MECALO. If successful and fully implemented in all European production of silicon and manganese, MECALO could save 33 million tonnes of CO2 emissions per year in 2050. Silicon is a raw material that is critical for the green and digital transitions. Its application ranges from electric vehicles to solar cells, batteries, smart phones and wind turbines. The production of silicon is a source of greenhouse gas emissions, as the process requires carbon to reduce quartz into silicon. Some metals, such as steel, can be produced with hydrogen as a reductant. This is not possible for silicon, manganese and several other metals. That's why pioneering projects such as MECALO are needed, to develop innovative production methods without CO2 emissions. The MECALO project will research and develop a new production method that involves capturing carbon oxides from process off-gases, converting them to solid carbon using low-carbon hydrogen, and reusing the recovered carbon as a reduction material to produce critical metals and materials. While this method is showing promising results, it also presents challenges that need to be resolved, such as increased energy use. The overall budget for MECALO is EUR 9.9 million (NOK 116 million), with Elkem's budget and requested grant amounting to EUR 1.8 million (NOK 21 million). Key highlights of the MECALO project: Innovative carbon capture and reuse: Capturing carbon oxides from off-gases and converting them into solid carbon using hydrogen, which is then reused in metal production. Elimination of external carbon feedstock: The process aims to eliminate the need for external carbon in carbothermic production. Researching production of "turquoise hydrogen": A project partner will research methane pyrolysis, whereby methane is cracked into hydrogen and solid carbon, using only a fifth of the energy required for green hydrogen production. Elkem has been working on Elkem Sicalo® with SINTEF as its research partner since 2021, with support from The Research Council of Norway from 2022-2024. The research partners are now initiating the second phase of the project with extensive pilot testing of various stages of the production process, with support from Enova. New Risk • Oct 25
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.9x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.9x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: kr0.14 (vs kr0.72 loss in 3Q 2023) Third quarter 2024 results: EPS: kr0.14 (up from kr0.72 loss in 3Q 2023). Revenue: kr8.06b (up 4.0% from 3Q 2023). Net income: kr92.0m (up kr548.0m from 3Q 2023). Profit margin: 1.1% (up from net loss in 3Q 2023). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 6.2% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Announcement • Oct 18
Elkem to Launch A New Generation of Silicone Solutions for Additive Manufacturing/3D Printing At Formnext 2024 in Frankfurt Elkem announced its groundbreaking latest product innovation, enlarging its portfolio of silicone solutions of the AMSil™ and AMSil™ Silbione™ ranges for Additive Manufacturing/3D Printing, at the upcoming Formnext show in Frankfurt Germany from November 19th to 22nd 2024. After having already successfully launched the AMSil™ & AMSil Silbione™brand and being acknowledged for this disruptive silicone solutions as a winner in the 2021 R&D 100 award, Elkem is continuing its material innovation campaign in Additive Manufacturing/3D Printing. In addition to the existing AMSil™ 20501/AMSil Silbione™ 24501 and AMSil™ 20502 (special for food grade) range, Elkem has developed the new AMSil™ 20503 & AMSil Silbione™ 24503 range. Besides a longer shelf life for easier handling these new formulations are laying the base and open perspectives for an enlarged use in restricted and unrestricted medical application in the future. The new developments are available with Shore A hardness from ShA 10 to ShA 70 with all well-known properties of 100% silicones for LDM (Liquid Deposit Molding) based systems. Elkem will also launch a new reference AMSil™ 92102 in the support material series. This paste like water soluble material has improved printability and surface aspects and is suitable for use in common with the AMSil™and AMSil Silbione™ range allowing to taking advantage of features and structures associated with the freedom of design approach inherent to Additive Manufacturing/3D Printing. These latest developments show the commitment from Elkem to Additive Manufacturing/3D Printing and its potential of being part of a more sustainable economy in the future. Scaling Additive Manufacturing/3D Printing to industrial levels through Digital Manufacturing will create innovative, profitable, and sustainable solutions, reducing waste, transportation, and storage costs, thereby lowering the carbon footprint of end-products. Reported Earnings • Jul 13
Second quarter 2024 earnings released: EPS: kr1.35 (vs kr0.057 in 2Q 2023) Second quarter 2024 results: EPS: kr1.35 (up from kr0.057 in 2Q 2023). Revenue: kr8.49b (down 5.0% from 2Q 2023). Net income: kr854.0m (up kr818.0m from 2Q 2023). Profit margin: 10% (up from 0.4% in 2Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.8% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 02
Now 50% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.2% to kr20.57. The fair value is estimated to be kr41.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jun 26
Elkem ASA, Annual General Meeting, Apr 30, 2025 Elkem ASA, Annual General Meeting, Apr 30, 2025. Buy Or Sell Opportunity • Jun 25
Now 20% overvalued Over the last 90 days, the stock has fallen 2.3% to kr20.82. The fair value is estimated to be kr17.33, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Meanwhile, the company became loss making. Announcement • Apr 23
Elkem ASA Announces Board Changes Elkem's annual general meeting on 18 April 2024, the board has decided to elect Bo Li as the new Chair. Bo Li is also Chair of the board of China National Bluestar (Bluestar), Elkem's majority shareholder, and a subsidiary of Sinochem. The former Chair, Zhigang Hao, will continue as board member in Elkem, and holds the position as CEO of Adisseo, a subsidiary of Bluestar. Dag J. Opedal will continue as Vice Chair of the board of directors. Buy Or Sell Opportunity • Apr 19
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to kr18.87. The fair value is estimated to be kr25.91, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: kr0.11 (vs kr15.09 in FY 2022) Full year 2023 results: EPS: kr0.11 (down from kr15.09 in FY 2022). Revenue: kr34.4b (down 24% from FY 2022). Net income: kr72.0m (down 99% from FY 2022). Profit margin: 0.2% (down from 21% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 4.2% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Board Change • Mar 21
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Nathalie Brunelle was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Mar 12
An unknown buyer acquired unknown minority stake in Vianode AS from Elkem ASA (OB:ELK). An unknown buyer acquired unknown minority stake in Vianode AS from Elkem ASA (OB:ELK) on March 11, 2024.An unknown buyer completed the acquisition of unknown minority stake in Vianode AS from Elkem ASA (OB:ELK) on March 11, 2024. Announcement • Mar 08
Elkem Appoints Sandy Chen as Acting Senior Vice President for Silicones Division Elkem ASA announced that Larry Zhang has accepted a new position in Sinochem and Sandy Chen has been appointed Acting Senior Vice President for Elkem's Silicones division, a leading global player in fully integrated silicone manufacturing. Both will step into their new roles with immediate effect. Sandy Chen comes from the position as the Vice President Asia Pacific region in the Elkem Silicones division. Sandy has a long and extensive experience both within leadership and the silicones global business. She holds a polymer master's degree from Beijing Technology and Business University. Announcement • Jan 16
Elkem ASA (OB:ELK) entered into Share Purchase Agreement to acquire REC Solar Norway AS from REC Solar Holdings AS for approximately NOK 230 million. Elkem ASA (OB:ELK) entered into Share Purchase Agreement to acquire REC Solar Norway AS from REC Solar Holdings AS for approximately NOK 230 million on January 14, 2024. Under the terms of agreement, Elkem is paying consideration in cash. RIL will continue to retain the technology and intellectual property rights pertaining to kerf-based Polysilicon. Upon completion of the sale, REC Norway will cease to be a subsidiary of the Company. REC Solar Holdings AS and its subsidiaries, engaged in the business of manufacturing and sale of Solar PV HJT cells and modules, will continue to be RIL’s subsidiaries. This transaction will give Elkem control of industrial areas and facilities in Norway, including areas next to Elkem’s activities at Fiskaa in Kristiansand. The transaction remains subject to necessary approvals, including from the Norwegian Competition Authority. The transaction is also subject to certain regulatory and other customary closing conditions and transaction does not fall within related party transactions. The transaction is expected to complete by April 2024. Announcement • Dec 23
Elkem Postpones Start-Up of Iceland Furnace Elkem will postpone the start-up of its furnace 3 on Iceland by one month. This follows a notice from the national power company about the need for electricity curtailment for large energy users due to low water levels in key hydropower reservoirs. Elkem's furnace 3 on Iceland was temporarily shut down in the fourth quarter ofthis year in order to accelerate maintenance, with a ramp-down starting from 30 September. The planned start-up has now been postponed until the end of January 2024. This postponement will have no impact on customers or employees. Reported Earnings • Oct 26
Third quarter 2023 earnings released: kr0.72 loss per share (vs kr4.81 profit in 3Q 2022) Third quarter 2023 results: kr0.72 loss per share (down from kr4.81 profit in 3Q 2022). Revenue: kr7.92b (down 28% from 3Q 2022). Net loss: kr456.0m (down 115% from profit in 3Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 5.9% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Buying Opportunity • Oct 19
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be kr22.75, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 73%. Revenue is forecast to decline by 5.7% in 2 years. Earnings is forecast to decline by 56% in the next 2 years. Announcement • Aug 29
Elkem Launches UV Hg and UV LED Curable Silicone Solutions for Sustainable Release Coatings Elkem launched SILCOLEASE UV POLY 126 a new 'Ready-To-Use' UV acrylate formulation especially designed for release coating of thermal labels that are self-wound without the use of a separate release liner. It guarantees the desired level of performance during the manufacturing, cutting, converting and printing stages, making it possible to develop sustainable thermal printed linerless labels and enable a circular economy. Elkem is one of the world's leading suppliers of silicon-based advanced material solutions shaping a better and more sustainable future. Elkem is committed to develop products needed for the green transition and minimizing the negative environmental and social impact of these products. Elkem is offering silicone release coatings in the widest range of formats, including solvent-based, water-dilutable emulsion formulations, solventless thermal and UV. Users can choose the most appropriate system for their specific coating equipment and substrate while taking into account energy, sustainability, regulatory and safety requirements. UV LED technology has emerged as a promising method for radiation curing silicone chemistries at specific wavelengths as an alternative to mercury vapor curing lamps. In addition to its effectiveness and flexibility compared to standard mercury lamps, UV LED provides the benefit of improved sustainability by consuming less energy and the elimination of greenhouse gas produced. To support the Label Industry in its transition to a more sustainable footprint, and the conversion to UV LED curing, Elkem introduces new UV LED curable silicone solutions, SILCOLEASE UV LED Series. SILCOLEASE UV LED systems utilizing Elkem photoinitiator demonstrate excellent cure and physical properties for more sustainable release coatings. Elkem launches SILCOLEASE UV POLY 126 a new "Ready-To-Use" UV acrylate formulation especially designed for release coating of thermal labels that are self-wound without the use of a separate release liner. It guarantees the desired level of performance during the manufacturing, cutting, converting and printing stages, making it possible to develop sustainable thermal printed linerless labels and enable a circular economy. The latest addition to the SILCOLEASE UV 100 acrylate series, SILCOLEASE UV POLY 125 fills the gap between release force that can be too light and release force that can be too tight. This formulation works well with a wide variety of permanent self-adhesives and removable adhesives. It successfully cures under Hg UV and specified UV LED parameters. Recent Insider Transactions • Jul 16
Chief Executive Officer recently bought kr500k worth of stock On the 14th of July, Helge Aasen bought around 22k shares on-market at roughly kr22.50 per share. This transaction amounted to 48% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Helge's only on-market trade for the last 12 months. New Risk • Jul 15
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 12% Last year net profit margin: 21% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.9% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (339% cash payout ratio). Profit margins are more than 30% lower than last year (12% net profit margin). Reported Earnings • Jul 14
Second quarter 2023 earnings released: EPS: kr0.057 (vs kr4.67 in 2Q 2022) Second quarter 2023 results: EPS: kr0.057 (down from kr4.67 in 2Q 2022). Revenue: kr9.26b (down 24% from 2Q 2022). Net income: kr36.0m (down 99% from 2Q 2022). Profit margin: 0.4% (down from 25% in 2Q 2022). Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 7.3% decline forecast for the Chemicals industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Jun 10
Elkem ASA (OB:ELK) acquired VUM, a.s. from ZSNP, a.s. Elkem ASA (OB:ELK) acquired VUM, a.s. from ZSNP, a.s. on June 9, 2023. With the transaction complete, VUM will rebrand and operate under Elkem Carbon AS, a wholly-owned subsidiary of Elkem ASA. VUM will continue the operations under its current management. Elkem expects the acquisition to contribute with an additional turnover of around NOK 360 million per year.
Elkem ASA (OB:ELK) completed the acquisition of VUM, a.s. from ZSNP, a.s. Valuation Update With 7 Day Price Move • May 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr30.10, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 20x in the Chemicals industry in the United Kingdom. Total returns to shareholders of 121% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr39.19 per share. Buying Opportunity • May 03
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be kr39.27, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 89%. Revenue is forecast to decline by 7.3% in 2 years. Earnings is forecast to decline by 56% in the next 2 years. Upcoming Dividend • Apr 25
Upcoming dividend of kr6.00 per share at 17% yield Eligible shareholders must have bought the stock before 02 May 2023. Payment date: 10 May 2023. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 17%. Within top quartile of British dividend payers (5.8%). Higher than average of industry peers (2.3%). Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: kr15.09 (vs kr7.49 in FY 2021) Full year 2022 results: EPS: kr15.09 (up from kr7.49 in FY 2021). Revenue: kr45.0b (up 36% from FY 2021). Net income: kr9.56b (up 107% from FY 2021). Profit margin: 21% (up from 14% in FY 2021). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.5% p.a. on average during the next 3 years, while revenues in the Chemicals industry in the United Kingdom are expected to grow by 2.1%. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Board Change • Mar 20
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Nathalie Brunelle was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Nov 24
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Nathalie Brunelle was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Jul 31
Insider recently sold kr397k worth of stock On the 29th of July, Luiz Simao sold around 10k shares on-market at roughly kr39.72 per share. In the last 3 months, there was an even bigger sale from another insider worth kr1.9m. Insiders have been net sellers, collectively disposing of kr7.7m more than they bought in the last 12 months. Reported Earnings • Jul 19
Second quarter 2022 earnings released: EPS: kr4.67 (vs kr0.98 in 2Q 2021) Second quarter 2022 results: EPS: kr4.67 (up from kr0.98 in 2Q 2021). Revenue: kr12.3b (up 72% from 2Q 2021). Net income: kr2.96b (up 386% from 2Q 2021). Profit margin: 24% (up from 8.5% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 11% compared to a 16% decline forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment deteriorated over the past week After last week's 17% share price decline to kr27.60, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 18x in the Chemicals industry in the United Kingdom. Total returns to shareholders of 32% over the past three years. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to kr32.96, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 17x in the Chemicals industry in the United Kingdom. Total returns to shareholders of 65% over the past three years. Recent Insider Transactions • May 17
Senior Vice President of Technology recently sold kr1.8m worth of stock On the 13th of May, Havard Moe sold around 50k shares on-market at roughly kr36.02 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr7.3m more than they bought in the last 12 months. Reported Earnings • Apr 27
Full year 2021 earnings released: EPS: kr7.49 (vs kr0.41 in FY 2020) Full year 2021 results: EPS: kr7.49 (up from kr0.41 in FY 2020). Revenue: kr33.1b (up 38% from FY 2020). Net income: kr4.63b (up kr4.39b from FY 2020). Profit margin: 14% (up from 1.0% in FY 2020). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 15% compared to a 14% decline forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Director Grace Tang was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Apr 21
Upcoming dividend of kr3.00 per share Eligible shareholders must have bought the stock before 28 April 2022. Payment date: 06 May 2022. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 7.1%. Within top quartile of British dividend payers (4.6%). Higher than average of industry peers (2.6%). Reported Earnings • Mar 18
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: kr7.49 (up from kr0.41 in FY 2020). Revenue: kr33.1b (up 38% from FY 2020). Net income: kr4.63b (up kr4.39b from FY 2020). Profit margin: 14% (up from 1.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 9.4% compared to a 11% decline forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Recent Insider Transactions • Feb 11
Senior Vice President of Technology recently sold kr1.7m worth of stock On the 9th of February, Havard Moe sold around 50k shares on-market at roughly kr34.50 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr7.0m more than they bought in the last 12 months. Reported Earnings • Feb 10
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: kr7.49 (up from kr0.41 in FY 2020). Revenue: kr33.7b (up 40% from FY 2020). Net income: kr4.63b (up kr4.39b from FY 2020). Profit margin: 14% (up from 1.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 6.0% compared to a 3.2% decline forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Reported Earnings • Oct 29
Third quarter 2021 earnings released: EPS kr2.16 (vs kr0.18 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: kr8.80b (up 54% from 3Q 2020). Net income: kr1.37b (up kr1.48b from 3Q 2020). Profit margin: 16% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Recent Insider Transactions • Oct 29
Senior Vice President of Technology recently sold kr1.9m worth of stock On the 27th of October, Havard Moe sold around 50k shares on-market at roughly kr37.80 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr5.2m more than they bought in the last 12 months. Reported Earnings • Jul 18
Second quarter 2021 earnings released: EPS kr0.98 (vs kr0.022 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: kr7.17b (up 26% from 2Q 2020). Net income: kr609.0m (up kr622.0m from 2Q 2020). Profit margin: 8.5% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Executive Departure • Jul 13
Chief Executive Officer Michael Koenig has left the company On the 30th of June, Michael Koenig was replaced as CEO by Helge Aasen after 1.6 years in the role. We don't have any record of a personal shareholding under Michael's name. Michael is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 10.50 years. Under Michael's leadership, the company delivered a total shareholder return of 43%. Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS kr1.18 (vs kr0.43 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: kr7.19b (up 27% from 1Q 2020). Net income: kr684.0m (up 173% from 1Q 2020). Profit margin: 9.5% (up from 4.4% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Apr 21
Upcoming dividend of kr0.15 per share Eligible shareholders must have bought the stock before 28 April 2021. Payment date: 06 May 2021. Trailing yield: 0.4%. Lower than top quartile of British dividend payers (4.1%). Lower than average of industry peers (1.6%). Recent Insider Transactions • Mar 27
Director recently sold kr1.5m worth of stock On the 26th of March, Helge Aasen sold around 40k shares on-market at roughly kr37.00 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr1.1m more than they bought in the last 12 months.