Norsk Hydro

Resilient in weak markets, positioned for growth - Seite 2

Positive indicators emerged during the first quarter with revenue drivers like LME, premiums and alumina prices showing signs of improvement. LME aluminium prices increased at the end of the quarter and into April, rising above USD 2,500 per tonne mid-April. European and the U.S. ingot premiums rose, indicating market optimism. Alumina prices trended upward, reaching USD 378 per tonne mid-April, influenced by Chinese production challenges. On April 12, the U.S. and UK sanctions restricted trade of Russian aluminium, banning imports of metal produced after April 13. Hydro ceased purchasing Russian aluminium after the Ukraine invasion in 2022, and urges the EU to sanction Russian aluminium in the forthcoming fourteenth package, expected in May.

Through ongoing improvement programs and commercial initiatives, Hydro continues to reinforce robustness and remains on track to deliver additional improvements of NOK 8.5 billion by 2030.

Hydro continues to safeguard recycling margins and secure scrap in the short term, while securing long-term growth through expanding scrap sourcing and utilization. Recent milestones, including the inauguration of new recycling units at Hydro Årdal and Hydro Høyanger, will increase annual recycled aluminium capacity by more than 60,000 tonnes, supporting the Hydro REDUXA 3.0 offering. Hydro also entered a multi-year agreement with Sims Alumisource in North America to secure access to 36,000 tonnes of post-consumer aluminium scrap. Plans to build a scrap sorting plant at the Wrexham casthouse in the UK, with 30,000 tonnes of scrap sorting capacity, will enable Hydro to process and recycle a wider range of post-consumer aluminium scrap. These initiatives reinforce Hydro's market presence within recycling, fostering growth and resilience in alignment with the 2030 recycling targets.

Hydro Extrusions is committed to expanding its market presence through strategic investments aimed at lifting profitability and sustainability. Hydro Extrusions is growing with the customers and four new OEM contracts were signed since Capital Market Day in November, accumulating contracts worth EUR 1.9-2.0 billion since the beginning of 2023. Additional EUR 0.9-1.0 billion worth of contracts are in process, promising solid EBITDA contributions with attractive margins. Through ongoing partnerships, invested capacity expansions and sustainability focus, Hydro Extrusions is positioned to deliver on the 2025 EBITDA target of NOK 8 billion when markets recover.