Hydro’s 2024 performance unveiled: a recapitulation of finance, sustainability, and social responsibility

Norsk Hydro’s 2024 was challenging, but the business had an overall growth-hinting year. There have been several superlative financial, environmental, and social achievements during the calendar year.

Financial performance

While there was a drop in adjusted Return on Average Capital Employed (RoaCE) from 22.2 per cent in 2022 to 8.5 per cent in 2024, with an adjusted EBITDA standing at NOK 26.3 billion. Hydro has overseen the pursuit of its profitability target of over 10 per cent across the cycle. The company reported NOK 10.1 billion (USD 907.98 million) in accumulated improvements through its ongoing programme against the 2018 baseline, edging closer to its target of NOK 9.5 billion by 2024. Commercial ambitions also saw NOK 2.6 billion in accumulated improvements, reinforcing Hydro’s commitment to operational efficiency and growth while maintaining a strong pay-out ratio of 50 per cent.

The operating results are primarily affected by price developments of Hydro’s main products, raw materials, margin developments and fluctuations in the most significant currencies for Hydro, which are USD, NOK, EUR, and BRL.

Environmental performance

Hydro’s environmental performance was led by the global industry’s broader push towards sustainability. The company revealed in its annual report 2024 a 16.1 per cent reduction in total greenhouse gas emissions against the 2018 baseline, which is also a 4.2 per cent progress Y-o-Y. The company has advanced in reducing non-greenhouse gas emissions, including a 57 per cent cut in sulphur dioxide emissions, 67 per cent in nitrogen oxides, and 37 per cent in particulate matter, all against the 2017 baseline.

Sustainability performance