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Hydro Announces Q4 Results

Metal News - Published on Mon, 10 Feb 2020

Image Source: Hydro
Hydro's underlying earnings before financial items and tax was NOK 560 million in the fourth quarter, a slight increase from NOK 534 million in the same quarter last year. This mainly reflected positive effects from increased production in Brazil, lower raw material costs and positive currency effects, mostly offset by a decrease in the realized aluminium and alumina prices. President and CEO Hilde Merete Aasheim said "We have taken firm measures in a weak market. Our improvement program as well as cash release ambition are ahead of plan. Our improvement efforts will continue with full force, in line with our agenda towards lifting profitability and driving sustainability. The increasing pull for low-carbon products and solutions is an encouraging trend and we are well positioned for a low-carbon future. Since we launched CIRCAL one year ago, we have signed 60 new low-carbon building projects around the world.”

Underlying EBIT for Bauxite & Alumina decreased compared to the fourth quarter of last year, from NOK 493 million in Q4 2018 to negative NOK 75 million in Q4 2019. The results were driven by a decrease in the realized alumina sales price, partly offset by positive effects from increased production following the lifting of the production embargo on May 20, 2019, and positive currency effects.

Underlying EBIT for Primary Metal increased from negative NOK 677 million in Q4 2018 to positive NOK 155 million in Q4 2019, mainly due to lower raw material cost and positive currency effects, partly offset by lower all-in metal prices.

Underlying EBIT for Metal Markets declined from NOK 275 million in Q4 2018 to NOK 132 million in Q4 2019 due to lower results from the remelters and negative currency effects.

Underlying EBIT for Rolled Products increased, from negative NOK 113 million in Q4 2018 to positive NOK 34 million in Q4 2019. The result from the rolling mills was stable. The Neuss smelter result increased, driven by lower raw material costs and insurance compensation, partly offset by lower all-in metal prices.

Underlying EBIT for Extruded Solutions decreased compared to the same quarter last year, from NOK 202 million in Q4 2018 to NOK 85 million in Q4 2019. Results in all business units were lower than the same quarter last year, mainly driven by lower volumes due to the declining market, partially offset by higher margins. Results were positively impacted by insurance compensation of NOK 187 million related to the cyber-attack in March 2019.

Underlying EBIT for Energy decreased significantly from NOK 500 million in Q4 2018 to NOK 296 million in Q4 2019. The decrease was mainly due to lower production and somewhat lower prices, partly offset by higher commercial results.

Hydro's underlying EBIT for 2019 was NOK 3,359 million, down from NOK 9,069 million in 2018. The weaker results reflect lower realized aluminium and alumina prices, partly offset by the positive effects from increased production in Brazil, lower raw material costs and positive currency effects.

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Posted By : Yogender Pancholi on Mon, 10 Feb 2020
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