Primary aluminium weekly: Hydro’s adjusted EBITDA for 2023 drops significantly, while Hindalco soars in Q3 FY2024

The Norwegian aluminium giant Hydro faces a 43.88 per cent drop in adjusted EBITDA for 2023, attributed to market challenges. Hindalco reports a robust Q3 FY2024, with a 71 per cent YoY increase in net profit. EGA collaborates with the UAE's AI office to accelerate digitisation in industrial sectors, showcasing a commitment to Industry 4.0. Russian aluminium maintains a 90 per cent presence in LME-approved warehouses. The LME aluminium price has soared upward by 0.68 per cent over the week from US$21,188 per tonne on February 12 to US$2,203 per tonne on February 16.

Hydro’s adjusted EBITDA for 2023 drops significantly by 43.88% Y-o-Y

In 2023, Hydro's adjusted EBITDA dropped significantly by 43.88 per cent YoY, mainly attributed to lower sales prices, reduced volumes, and increased fixed costs. Despite a 17 per cent decline in demand for extruded products in European markets, Hydro Extrusions achieved the second-highest adjusted EBITDA of NOK 6,480 million. The challenging alumina market conditions and power price uncertainties led to a total impairment loss of NOK 4.9 billion for the Tomago aluminium plant in Australia. However, recent developments, including the sale of 30% of Hydro Alunorte and Hydro's 5% interest in Mineracão Rio do Norte, contribute to a more balanced alumina supply for the aluminium smelter portfolio. Hydro is resolute in its commitment to the transition to green aluminium, viewing it as a fundamental megatrend shaping the company's strategic future.

Hindalco in 3QFY2024: Double-digit growth in net profit due to lower input costs & steady performance

Hindalco Industries Limited reported a robust performance in Q3 FY2024, with a 71 per cent YoY increase in consolidated net profit, reaching INR 2,331 crore. The growth was propelled by strong results in both aluminium and copper segments, attributed to lower input costs and solid operational performance. Consolidated EBITDA rose by 61 per cent to INR 6,322 crore. Despite a 1 per cent dip in consolidated revenue to INR 52,808 crore, Hindalco's upstream business EBITDA for the quarter marked a significant 54 per cent YoY increase, reaching INR 2,443 crore. The downstream segment faced a slight decline in revenue and sales, resulting in a 34 per cent fall in downstream EBITDA to INR 103 crore. Mr Satish Pai, Managing Director of Hindalco Industries, expressed confidence in sustaining growth amidst challenging market conditions.

Russian aluminium retains 90% presence in LME-approved warehouses

In January 2024, Russian primary aluminium stocks in LME-approved warehouses slightly declined to 286,750 tonnes, constituting 90% of the total, compared to 338,375 tonnes in December. The consistent presence showcases Russia's continued influence despite some restrictions.

EGA will work with the UAE AI office to accelerate digitisation in industrial sectors, including aluminium

Emirates Global Aluminium (EGA) and the UAE's AI office signed an MoU to advance AI adoption in the region's industrial sectors. The collaboration aims to accelerate digitisation, enhance operational efficiency, and innovate in developing new aluminium alloys, showcasing EGA's commitment to Industry 4.0.