25. Juli 2017 | Branche

Norsk Hydro: Q2 results up on higher aluminium prices

Hydro generated revenue of NOK24.6 billion in Q2 2017, up 20.6% on the year-ago period. Underlying earnings before financial items and tax (Ebit) increased to NOK2.9 billion (+up 49%), mainly driven by higher aluminium prices and favourable currency developments. Lower realized alumina prices and increased raw material costs had a negative impact on results.

Brandtzæg: "Higher aluminium prices in the quarter are lifting results"

“Higher aluminium prices in the quarter are lifting results, and I am pleased to see Sapa delivering record results, continuing the strong trend,” said president and CEO, Svein Richard Brandtzæg. “Hydro will confirm its position as the world's leading integrated aluminium company with the agreement to acquire Orkla's 50 percent interest in world-leading extrusion company Sapa. The transaction reinforces our strategic direction to become better, bigger and greener, with a solid asset base, unique competencies and capabilities along the full value chain,” he continued. Closing is expected in the second half of 2017, pending regulatory approvals.

“We see a global primary aluminium deficit in the quarter. This is driven by increasing deficit outside China. For the full year, we are maintaining our 4 to 6 percent annual aluminium demand growth outlook for 2017 and expect a largely balanced, global aluminium market,” he said.