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24 OCTOBER 2018 AL CIRCLE

Hydro’s bauxite and alumina EBIT climbs 66% in Q3 2018 from same period last year, but production stood low

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

On releasing Norsk Hydro’s third quarter results, the company’s president and CEO Svein Richard Brandtzæg said, "The third quarter reflected our continued challenges at Alunorte and increased raw material costs, while higher aluminium and alumina prices, as well as strong Energy results, contributed positively. The market for aluminium is tightening, and we expect the 2018 global primary market in deficit."

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Underlying earnings before financial items and tax increased to NOK 2,676 million in the third quarter, up from NOK 2,446 million in the corresponding period last year, reflecting higher all-in aluminium and alumina prices, positive currency effects and strong contribution from the Energy business area. But continued production curtailment at the Alunorte alumina refinery and increased raw material costs had a negative impact.

Underlying EBIT for bauxite and alumina climbed compared to the same period last year. In Q3 2017, Hydro’s bauxite and alumina EBIT was at NOK 413 million, which this year increased 66 per cent to NOK 685 million. In the second quarter this year, it was much lower at NOK 364 million. In the first nine months of this year, Hydro’s bauxite and alumina EBIT stood at NOK 1789 million, down from NOK 1831 million in the same period of 2017.

Higher realized alumina sales prices and positive currency effects were partly offset by higher raw material prices and the effects of reduced production at both Alunorte and Paragominas.

The production of bauxite decreased 58 per cent from 3043 thousand tonnes in Q3 2017 to 1.286 million tonnes in Q3 2018. It reduced from Q2 2018 as well, as the company’s bauxite output was at 1.348 million tonnes then. Alumina production also plunged by 49 per cent from 1.605 million tonnes in Q3 2017 to 821,000 tonnes in Q3 2018.

In the first nine months of 2018, Hydro’s bauxite production was at 4.96 million tonnes, down from 8.386 million tonnes in the same period last year. The alumina production also stood down in the first nine months at 2.926 million tonnes, compared to 4.704 million tonnes last year.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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