
Hydro recorded underlying earnings before financial items and tax of NOK 3,147 million in Q1 2018, up from NOK 2,284 million in Q1 2017.The increase mainly reflects a higher all-in metal and alumina prices that was partly offset by increased raw material costs.

The production cut at Alunorte and Paragominas during March had a negative impact on the results for Bauxite & Alumina in Q1 2018. The results were driven by higher realized alumina sales prices offset by higher raw material prices and reduced output at both plants.
"The US sanctions on Rusal have caused great uncertainty in the world’s aluminium markets and will impact trade flows and availability of metal and raw materials throughout the aluminium value chain. The Brazilian authorities’ embargo on Alunorte adds to the uncertainty in the aluminium industry and has led to 50 percent curtailment of Albras primary plant and 50 percent production at the Paragominas bauxite mine," said President and CEO Svein Richard Brandtzæg.
Underlying EBIT for Primary Metal declined in the first quarter due to higher raw material costs, partly offset by higher all-in metal prices. The Karmøy Technology Pilot is ramping up production during the first half of the year.
Underlying EBIT for Metal Markets increased mainly due to higher sales volumes and margins from the remelters, higher results from sourcing and trading activities, as well as positive inventory valuation effects.
Underlying EBIT for Rolled Products increased in the first quarter of 2018.Increasing margins and improved production performance were partly offset by negative currency effects. Neuss smelter results in Q1 2018 increased due to positive effects from new power contracts, including an internal contract with Energy.
Underlying EBIT for Extruded Solutions increased compared to the pro forma underlying EBIT in the first quarter 2017, driven by improved sales volumes and margins.
Due to the situation in Brazil, Hydro's "Better" improvement program is not expected to reach the 2018 target of NOK 500 million.
Hydro's net debt position improved from NOK 4.1 billion to NOK 3.6 billion at the end of the quarter.
"We maintain the view of a global primary demand outlook of 4-5%, expecting the market moving towards a deficit for primary aluminium in 2018," said Brandtzæg.
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