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Hydro Reports Second quarter 2020 Results

Metal News - Published on Wed, 29 Jul 2020

Image Source: Hydro
Hydro’s underlying EBIT for the second quarter of 2020 was NOK 949 million, affected by Covid-19 induced weak markets weighing on prices and volumes. Hydro has taken forceful actions in response to the uncertain situation, protecting people and operations, while generating cash. Hydro’s underlying EBIT for the second quarter was NOK 949 million, compared with NOK 875 million for the same quarter last year. The ramp-up of Alunorte’s production and reduced costs, including record low production cost at Alunorte, contributed positively to the second quarter results. These positive elements were partly offset by reduced realized alumina and aluminium prices in addition to reduced downstream volumes.

Hydro has taken forceful actions in response to the uncertain situation, including strict precautionary actions to ensure health and safety, extensive social and community support, financial measures to protect liquidity and operational measures to adjust capacity, curtail production and cut costs. The Covid-19 situation continues to cause significant market uncertainty, with global GDP and industrial production falling during the quarter, leading to a reduction in aluminium demand. Although uncertainty remains high, several countries, and especially China, are showing signs of recovery towards the end of the second quarter.

The global fall in demand and government-imposed restrictions have directly affected certain operations in Hydro. Extruded Solutions, Rolled Products and recycling facilities were impacted the most, with capacity utilization starting to improve towards the end of the quarter. Extruded Solutions and Rolled Products are operating at reduced capacity utilization. Metal Markets recycling facilities were operating under a combination of full curtailments or reduced capacity utilization during the quarter but were largely back to normal operations by the end of the quarter.

Bauxite & Alumina, Primary Metal and Energy have been operating largely as normal during the quarter.

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Posted By : Yogender Pancholi on Wed, 29 Jul 2020
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