
Hydro released it Q2 2018 results reporting an underlying EBIT of NOK 2713 million, down 7% from the same period in 2017 and 14% QoQ. 50% production at Alunorte, Paragominas and Albras and higher costs affected the total results considerably.

Underlying EBIT for Bauxite & Alumina decreased significantly compared to the second quarter of 2017. The Underlying EBIT for the quarter stood at NOK 364 million, down 45% from NOK 662 million in Q2 2017 and down 51% from NOK 741 million in Q1 2018. The EBIT for H1 2018 also drops to NOK 1,104 million from NOK 1418 million in H1 2017. The negative results were attributed to the reduced production at both Alunorte and Paragominas, whose outputs were curtailed to 50%. Higher raw material prices partly offset by higher realized alumina sales prices in the quarter under review.

Bauxite production in Q2 2018 dropped 54% YoY to 1,348 kt and alumina production dropped 47% to 819 kt. The sequential drop was about 42% and 35% respectively.
Commenting on the results and the situation in Alunorte, President and CEO Svein Richard Brandtzæg said: "We are continuing our dialogue with Brazilian authorities, aiming to resume normal operation at Alunorte as soon as possible. The process to resolve the situation in Brazil is challenging and has taken longer than expected. We have implemented measures that enable Alunorte to operate safely also going forward, but the timing for resuming full production remains uncertain."
The report also says that due to the situation in Alunorte, Hydro's "Better" improvement program is not expected to reach the 2018 target of NOK 500 million.
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