Hydro's production volume dropped YoY in Q1 2019; to release complete Q1 financial results on June 5

According to the latest press update from Hydro, the company’s production volumes in Q1 2019 fell YoY, reflecting the continued Alunorte curtailment and the recent cyber attack that disrupted production putting up a number of operational challenges, primariloy in Extruded Solutions business. Hydro will be releasing its complete Q1 financial results on June 5.

“The cyber attack that hit us on March 19 has affected our entire global organization, with Extruded Solutions having suffered the most significant operational challenges and financial losses,” says President and CEO Svein Richard Brandtzæg. He added that the overall financial impact of the cyber attack is estimated at NOK 400-450 million in Q1. Hydro’s cyber security was already insured  with cyber insurance from recognized service providers.

Brandtzæg also added that they are progressing towards a resolution of production restart at Alunorte in Brazil. However, he has not indicated any possible date for operation restart. On April 12, Hydro and Ministerio Publico filed a joint petition to the federal court in Brazil urging for the production embargo on Alunorte to be lifted. The court is currently evaluating the petition.

Hydro had to postpone its complete Q1 report to June 5 because of the cyber attack. According to preliminary data, external sales volumes in Extruded Solutions fell to 333,000 tonnes in Q1 2019 from 362,000 tonnes in Q1 2018. Extruded Solutions is currently focusing on its value over volume strategy.

Hydro’s Bauxite & Alumina business, Primary Metal, Rolled Products and Energy have maintained their production volume closed to normal despite the attack.

Hydro Extruded Solutions acquired both the German powder coating company MBG and the remaining 50 percent ownership share in Technal Middle East. Hydro maintains its projection of a global deficit market for aluminium for 2019.