Hydro reports highest quarterly results for Bauxite, Alumina and Primary Metal since 2007 during Q4 2014

Norsk Hydro ASA's underlying Earnings Before Interest and Tax (EBIT) increased to NOK 2,886 million in the fourth quarter, up from NOK 1,490 million in the third quarter of 2014. Bauxite & Alumina and Primary Metal delivered their highest quarterly results since 2007.

• Record high quarterly underlying EBIT of NOK 2,886 million
• Proposed 2014 dividend NOK 1 per share
• Revised dividend policy: 40 % of net income over the cycle
• Higher realized all-in metal and alumina prices, supported by currency movements
• Improved operating performance at Alunorte and Paragominas
• Karmøy technology pilot investment decision made

Higher realized aluminium prices, product premiums and realized alumina prices had significant positive impact on the quarter together with the substantial strengthening of the US dollar compared to the NOK and BRL.

Underlying EBIT for Bauxite and Alumina improved significantly in the fourth quarter reflecting higher realized alumina prices, higher sales volumes and lower operating costs at Alunorte together with positive currency developments. Bauxite production increased in the quarter reaching 10.2 million mt on an annualized basis.

"I am pleased to see the highest quarterly results we have reported since we became a pure play aluminium company in 2007. For the second quarter in a row, we also see a solid improvement in operating costs at Alunorte and Paragominas, as well as increased production levels, reflecting robust operations," says President and CEO, Svein Richard Brandtzæg.

Underlying EBIT for Primary Metal improved substantially in the fourth quarter influenced by a further increase in realized aluminium prices and product premiums. The strengthening USD compared to the NOK and BRL also had a significant positive impact on underlying results for the quarter.

"We will continue our improvement efforts in 2015, both on the commercial and operational side. As earnings outlook has improved, now is the time to really show the strength of our improvement culture," says Brandtzæg.