Hydro's EBIT for Bauxite & Alumina up 16% QoQ in Q3 2019

Hydro released results for the third quarter of 2019. Underlying EBIT for Bauxite & Alumina decreased by 30% compared to the third quarter of 2018. The Underlying EBIT stood at NOK 481 million in Q3 2019, down from NOK 685 million in Q3 2018. But EBIT was up 16% quarter-on-quarter.

“The results were 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,” Hydro said,

“A milestone was reached in September, when the final embargoes on Alunorte were lifted, allowing us to resume installation and commissioning activities at the new and modern bauxite residue deposit area, DRS2. Ramp-up is proceeding successfully, and we expect to reach 85-95 percent capacity utilization in 2020. Full capacity is expected from 2021,” said President and CEO Hilde Merete Aasheim.

Alunorte, with an annual production capacity of 6.3 million tonnes, reached 83 percent utilization of its capacity in the third quarter.

Underlying EBIT for Bauxite & Alumina stood at NOK 1,049 million in the first nine months of 2019, compared to NOK 1,789 million in the first nine months of 2018.

The company reported an underlying EBIT of NOK 1,366 million in Q3, from NOK 2,676 million in the third quarter of 2018 due to lower aluminium and alumina prices, partly offset by lower raw material costs and positive effects from higher production in Brazil.