Hydro reports underlying EBIT of NOK 1,407 million in Q3

Hydro reported underlying EBIT of NOK 1,407 million for the third quarter of 2020. That was up from NOK 1,366 million in the same quarter last year.

“Our top priority is the health and safety of our people and the communities where we operate. Hydro’s organization is maneuvering the Covid-19 situation, protecting people and operations while generating cash. I am pleased to see strong cash generation as a result of our efforts. At the same time, we are pursuing our profitability and sustainability agenda, strengthening our low-carbon position and exploring new growth areas,” said President and CEO Hilde Merete Aasheim.

Extruded Solutions saw a faster-than-expected recovery, especially in Europe, and a favourable cost position. Reduced raw material costs, improved fixed costs and positive currency effects contributed positively to the third quarter result.

“The positive elements were offset by a lower result from Bauxite & Alumina, due to the Paragominas maintenance and reduced realized alumina and aluminium prices,” Hydro said

Paragominas bauxite pipeline maintenance is finalized. Alunorte alumina refinery is ramping up production towards nameplate capacity.

“I am happy to see Alunorte back on track and ramping up production. We have also decided to resume full production at our Husnes plant in Norway by end of November, after running at half capacity since the financial crisis in 2009. Husnes is among the most climate-efficient aluminium plants in the world, producing a material acknowledged by the European Union as an essential building block for the low-carbon, circular society,” said Aasheim.

Net debt position stood at NOK 9.9 billion at the end of the quarter, down from NOK 13.2 billion. Net cash provided by operating activities amounted to NOK 4.5 billion

The company held NOK 17.5 billion in cash and cash equivalents and NOK 4.2 billion short-term deposits, included in short-term investments, at the end of the third quarter.