Hydro reports strong operations in bauxite, alumina for 3Q2021; 100% production growth leads to NOK36,710 million revenue

Hydro has announced in its quarterly results today that it has already reached the 2021 improvement target of NOK 5.1 billion during the third quarter of 2021 (ended on September 30), driven by global demand recovery and fiscal stimulus. As per the result revealed by Hydro, the company has achieved a 33 per cent hike in revenue from NOK 27,516 million in Q3 2020 to NOK 36,710 million in Q3 2021. On a quarter-on-quarter basis, it grew 6 per cent from NOK 34,559 million.

Total revenue in nine months amounted to NOK 103,221 million compared to NOK 84,468 million a year ago.

Adjusted EBITDA in Q3 2021 gained 100 per cent year-on-year from NOK 3,100 million to NOK 7,219 million. In nine-month time, it stood at NOK 18,998 million, an increase of 95.77 per cent from NOK 9,704 million.

Under the upstream sector, Hydro has announced a robust operation both in bauxite and alumina. Adjusted EBITDA earned from bauxite and alumina stood at NOK 1,055 million, reflecting a year-on-year rise of 83 per cent from NOK 578 million. On a quarter-on-quarter basis, it climbed up by 23 per cent from NOK 855 million. However, in the first nine months, Hydro’s EBITDA from bauxite and alumina totalled 9.91 per cent less at NOK 2,909 million.

These positive outcomes were, however, partly offset by higher raw material costs upstream and negative currency effects, in addition to increased operational costs in bauxite & alumina relating to the decommissioning of a crane used to unload bauxite from ships.

Bauxite production in Q3 amounted to 2.756 million tonnes by gaining 100 per cent year-on-year from 1.167 million tonnes. From January to September, Hydro’s bauxite output totalled 8.230 million tonnes compared to 6.084 million tonnes during the same period last year.

Alumina production in Q3 came in 1.579 million tonnes, bringing the total output during January-September to 4.705 million tonnes. The production in Q3 recorded an increase of 47 per cent over the year, while the output in nine months rose 16.26 per cent.