Norsk Hydro: First quarter 2016: Higher downstream results offset by lower prices

Hydro's underlying earnings before financial items and tax declined to NOK 1,501 million in the first quarter, down from NOK 1,566 million in the fourth quarter of 2015.

The decline mainly reflected lower realized aluminium and alumina prices, partly offset by positive currency effects, lower raw material costs and seasonally stronger downstream results.

  • Underlying EBIT of NOK 1 501 million for Q1
  • Lower realized alumina and all-in aluminium prices
  • Record low implied alumina and all-in primary costs
  • Seasonally stronger downstream results
  • BNOK 2.9 Better improvement ambition progressing according to plan
  • 2016 global primary metal market largely balanced

“Downstream operations have delivered the strongest first quarter since Sapa was established in 2013, driven by seasonally higher volumes in Rolled Products and Sapa, as well as stronger margins on value-added extrusion products,” says President and CEO Svein Richard Brandtzæg.

Underlying EBIT for Bauxite & Alumina decreased compared to fourth quarter mainly due to lower realized alumina prices and lower sales volumes. The negative price development was partly offset by positive currency effects from a weaker Brazilian Real, lower fuel prices and lower depreciation following catch up effects on reassessment of useful life of certain assets in 2015. Production in Alunorte and Paragominas fell slightly after reaching record production levels in the fourth quarter of 2015.


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