Hydro’s primary aluminium production in 3Q2021 grows 2% to 573,000 tonnes; EBITDA from primary aluminium totals NOK4,263 million

Hydro has announced in its 3Q2021 results that it produced 573,000 tonnes of primary aluminium in the said period. That was up by 2 per cent from 561,000 tonnes in Q2 2021 and 10 per cent higher than 522,000 tonnes in Q3 2020. Backed on the increase in production and surge in LME aluminium price, Hydro earned the revenue of NOK 36,710 million in Q3 2021, 6 per cent more than in Q2 2021 and 33 per cent higher than in Q3 2020. During the third quarter, the LME aluminium price skyrocketed to US$2,419 per tonne from US$2,210 per tonne in Q2 2021.

In total nine months, Hydro churned out 1.673 million tonnes of primary aluminium as compared to 1.559 million tonnes a year ago.

Hydro has reported that its adjusted EBITDA grew 100 per cent year-on-year to NOK 7,219 million in 3Q2021, of which NOK 4,263 million earned from primary aluminium business and NOK 1,457 million earned from extrusions sector.

Hydro’s extrusion sales volumes to external market grew 13 per cent year-on-year from 278,000 tonnes to 315,000 tonnes. In total nine months, the sales amounted to 995,000 tonnes in comparison with 807,000 tonnes a year ago.

Extrusion is a selective growth area for Hydro, and aims to achieve a commercial uplift of NOK 1.2 billion by 2025, with automotive being a key contributor. Hydro also has ambitions to double the recycling post-consumer scrap by 2025.

“Electrification of the transport sector is a driver for aluminium demand. By 2035 it is expected that more than 50 percent of vehicles sold will be electric, and battery electric vehicles have around 40 percent more aluminium than a typical combustion vehicle. Hydro is well positioned to capture this longer-term demand in automotive,” said President and CEO Hilde Merete Aasheim.

Hydro’s net debt position decreased from NOK 3.6 billion to NOK 1.2 billion at the end of the September quarter. Net income from continuing operations amounted to NOK 1,127 million in the third quarter compared to NOK 2,397 million in Q2, owing to net foreign exchange loss of NOK 622 million and a NOK 3,005 million unrealized loss on LME-related contracts.

“I am happy to see our organization delivering record quarter results in a strong aluminium market and reaching our full-year improvement target already during third quarter. Extrusions is delivering ahead of plan, while robust operations in Brazil have been a key lever within the improvement program, where Alunorte has produced at nameplate capacity for the third consecutive quarter,” said Aasheim.

source https://www.alcircle.com/news/hydros-primary-aluminium-production-in-3q2021-grows-2-to-573-000-tonnes-ebitda-from-primary-aluminium-totals-nok4-263-million-71748