Hydro ASAs earnings plunged in the second quarter
compared with the first three months of this year due to lower
prices for alumina and aluminum and seasonally lower
production, the company said July 18.
before interest and taxes (Ebit) totaled 518 million Norwegian
kroner ($86.25 million), down 52 percent from 1.08 billion
kroner in the first quarter and 2.4 percent below 531 million
kroner in the second quarter of last year. Revenue of 16.05
billion kroner ($2.67 billion) was down 5 percent from a year
Underlying Ebit in the
first half totaled 1.6 billion kroner ($266.39 million), up 45
percent from 1.1 billion kroner a year earlier, but Norsk Hydro
said that disruptions to alumina production at the Alunorte
refinery in Brazil as a result of external power outages are
expected to have a negative impact on the companys
uncertainty hit aluminum prices in the second quarter, the
company said, but it expects aluminum demand outside China to
grow between 2 and 4 percent this year.
"Although the global
macroeconomic situation remains challenging, aluminum demand is
expected to continue to show solid growth this year. Hydro
maintains its outlook for balanced aluminum supply and demand
in 2013," Hydro president and chief executive officer Svein
Richard Brandtzæg said.
Hydro has sold around 50 percent of its expected primary
aluminum production in the third quarterexcluding volumes
from the Qatalum smelter in Qatarat around $1,850 per
The Alunorte alumina
refinery and the Albras aluminum smelter have entered into U.S.
currency forward contracts in Brazil for the second half of
2013 and 2014 amounting to $800 million, reducing Hydros
net U.S. dollar/Brazilian real exposure.
Pending approval by
the Chinese competition authorities, the planned Sapa joint
venture between Hydro and Orkla ASA is expected to be completed
in the third quarter.
A version of this article was first published by AMM sister
publication Metal Bulletin.