Hydro today announced results for the fourth quarter of 2018. Underlying earnings before financial items and tax decreased to NOK 534 million in Q4, down from NOK 3,555 million in the same quarter last year. The results mainly reflect the effects of the production curtailment at Alunorte alumina refinery and increased raw material costs.
“Our results are reflecting the challenging situation we face in Brazil and higher raw material costs,” said President and CEO Svein Richard Brandtzæg, adding that the refinery has made progress towards resuming normal production, but that the timing remains uncertain.
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Underlying EBIT for Bauxite & Alumina decreased significantly compared to the same period last year. Hydro’s Bauxite & Alumina EBIT dropped from NOK 1,872 million in 2017 to NOK 493 million in 2018, driven by the effects of reduced production at both Alunorte and Paragominas and higher raw material prices, partly offset by higher realized alumina sales prices and positive currency effects.
Hydro’s bauxite production stood at 1.254 million tonnes in Q4 2018, down 59% from 3 million tonnes in Q4 2017. The volume reduced by 2% from 1.286 million tonnes in Q3 2018. For the full year, bauxite production stood at 6.2 million tonnes.
Alumina production stood at 786,000 tonnes in Q4 2018, down 54% from 1.69 million tonnes in Q4 2017. For the full year 2018, total alumina production stood at 3.7 million tonnes.
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