Hydro's EBIT for Bauxite & Alumina dropped on lower realized alumina sales price in Q4 2019
Hydro released results for the fourth quarter of 2019. Underlying EBIT for Bauxite & Alumina decreased compared to the fourth quarter of last year.
Underlying EBIT for Bauxite & Alumina dropped from NOK 493 million in Q4 2018 to negative NOK 75 million in Q4 2019, driven by a decrease in the realized alumina sales price, partly offset by positive effects from increased production following the lifting of the production embargo on May 20, 2019, and positive currency effects.
“The federal court in Belém, Brazil, lifted the final embargo on Alunorte’s new bauxite residue disposal area (DRS2) on September 26, 2019, allowing Alunorte to resume activities of installation and commissioning at DRS2, ending a 19-month embargo period which had restricted activities at the plant. Alunorte, with an annual production capacity of 6.3 million mt, has reached 90 percent utilization of its capacity in the fourth quarter.”
“Commissioning of an additional press filter started in November. With 9 fully operational press filters we expect a capacity utilization of 100 percent by the end of 2020,” Hydro said.
For the full year, Underlying EBIT for Bauxite & Alumina stood at NOK 974 million. That was down from NOK 2,282 million in 2018.
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