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25 OCTOBER 2018 AL CIRCLE

Hydro’s primary aluminium EBIT stands 34% lower in Q3 2018 Y-o-Y but 14% higher from Q2 2018

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Norwegian aluminium and renewable energy company Norsk Hydro ASA announced the financial and production results for the third quarter and first nine months of 2018. As per the report, the company’s revenue for the third quarter stood at NOK 39766 million, up 74 per cent from NOK 22799 million in Q3 2017, but stood 4 per cent down from NOK 41254 million in Q2 2017. In the first nine months of 2018, the revenue was at NOK 120,991 million, compared to NOK 70,416 million in the same period last year.

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Underlying EBIT for primary aluminium declined compared to the third quarter last year due to higher raw material and fixed costs, partly offset by higher all-in metal prices. In addition, there was a positive contribution from the sale of excess power following the production curtailment of the Albras smelter in Brazil.

In Q3 2017, underlying EBIT for primary aluminium was at NOK 1298 million but this year it stood down by 34 per cent at NOK 861 million. However, it rose from the second quarter of 2018 by 14 per cent, from NOK 755 million. In the first nine months of 2018, EBIT for primary metal was at NOK 2439 million, compared to NOK 3684 million in the corresponding period last year.

Underlying EBIT for rolled products, on the other hand, stood at NOK 82 million compared to NOK 95 million in Q3 2017, marking a decline by 13 per cent. From the second quarter of 2018, underlying EBIT for rolled products in the third quarter reduced 61 per cent as the EBIT in the former quarter was at NOK 212 million. However, in the first nine months of this year, it increased to NOK 526 million, from NOK 285 million in Q3 2017.

Underlying EBIT for extruded solutions in Q3 2018 stood at NOK 497 million and in the first nine months of the entire year, it stood at NOK 2188 million.

As per the company’s report, production of primary aluminium in Q3 2018 was at 497,000 tonnes compared to 527,000 tonnes in Q3 2017, marking a decline by 6 per cent. But compared to Q2 2018, it stood higher by 1 per cent. In the first nine months of 2018, Hydro produced 1.503 million tonnes of primary aluminium while in the same period last year the company reportedly churned 1.566 million tonnes.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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