Norsk Hydro second quarter 2013: Result down on lower aluminium prices and power production
(Thomson Reuters ONE) -
Second quarter 2013: Result down on lower aluminium prices and power production
Hydro's underlying earnings before financial items and tax was NOK 518 million
in the second quarter, down from NOK 1,077 million in the first quarter of
2013, as lower aluminium and alumina prices and seasonally lower power
production weighed on results. Bauxite and alumina production was affected by
power outages.
* Underlying EBIT NOK 518 million
* Lower alumina and aluminium prices
* Lower result in Energy, mainly from seasonally lower production
* Production in Bauxite & Alumina affected by power outages
* Increased volumes lift result in Rolled Products
* Aluminium demand growth outlook 2-4% outside China
"Although the global macroeconomic situation remains challenging, aluminium
demand is expected to continue to show solid growth this year. Hydro maintains
its outlook for a balanced aluminium supply and demand in 2013," Hydro's
President and CEO Svein Richard Brandtzæg said.
Underlying EBIT for Bauxite & Alumina declined compared to the first quarter,
mainly due to lower LME-linked alumina prices and reduced bauxite production.
Alumina production declined further from weak levels experienced in the previous
quarter following external power outages affecting the Alunorte refinery.
"Hydro's main focus is on our company-wide improvement efforts, where one of the
key priorities is to implement actions to stabilize and lift production
following the power outages that caused production disruptions at Alunorte,"
said Brandtzæg. The production disruptions will initially affect Bauxite &
Alumina's improvement program "From B to A", but Hydro expects to reach savings
of NOK 1 billion by end-2015, in line with original plans.
Primary Metal delivered lower underlying results for the second quarter,
primarily due to lower realized aluminium prices. Underlying EBIT for Metal
Markets was stable compared to the previous quarter.
Compared to the first quarter, underlying EBIT for Rolled Products improved,
impacted by seasonally higher volumes partly offset by lower margins. Operating
costs per metric tonne declined.
Underlying EBIT for Energy declined compared to the first quarter mainly due to
seasonally lower production following high production levels in the first
quarter.
Operating cash flow was NOK 1.0 billion for the second quarter. Net cash used
for investment activities amounted to NOK 0.5 billion. Dividends paid in the
quarter amounted to NOK 1.7 billion. Hydro's net debt position amounted to
around NOK 1.3 billion at the end of the second quarter.
Reported earnings before financial items and tax amounted to NOK 375 million in
the second quarter. In addition to the factors discussed above, reported EBIT
included net unrealized derivative losses and positive metal effects amounting
to NOK 74 million in total, rationalization and closure cost of NOK 86 million
and divestment gains of NOK 16 million. In the previous quarter, reported EBIT
amounted to NOK 705 million including net unrealized derivative losses and
positive metal effects amounting to NOK 294 million in total and rationalization
and closure costs of NOK 78 million.
Loss from continuing operations amounted to NOK 713 million in the second
quarter including a net foreign exchange loss of NOK 1,291 million. In the
previous quarter, income from continuing operations amounted to NOK 254 million
including a net foreign exchange loss of NOK 115 million.
Income from discontinued operations amounted to NOK 48 million in the second
quarter including rationalization and closure costs of NOK 77 million. In the
previous quarter, income from discontinued operations amounted to NOK 9 million
including rationalization and closure costs of NOK 40 million.
Hydro has sold forward around 50 percent of its expected primary aluminium
production for the third quarter of 2013 at a price level of around USD 1,850
per mt. This excludes volumes from the Qatalum plant.
The Alunorte alumina refinery and the Albras aluminium smelter have entered into
USD currency forward contracts in Brazil for second half 2013 and 2014, in total
amounting to USD 800 million. The forward contracts reduce the net USD/BRL
exposure of the entities and thereby of Hydro. The achieved exchange rate for
the forward contracts is on average 2.25 and 2.37 for 2013 and 2014
respectively. Hedge accounting is applied to the forward contracts.
Key financial
information
% change
NOK million, Second First % change Second prior First First
except per quarter quarter prior quarter year half half Year
share data 2013 2013 quarter 2012 quarter 2013 2012 2012
--------------------------------------------------------------------------------
Revenue 16 053 16 111 - 16 829 (5) % 32 163 33 873 64 181
Earnings
before
financial
items and tax
(EBIT) 375 705 (47) % (610) >100 % 1 080 100 571
Items
excluded from
underlying
EBIT 144 372 (61) % 1 141 (87) % 516 1 008 725
--------------------------------------------------------------------------------
Underlying
EBIT 518 1 077 (52) % 531 (2) % 1 596 1 109 1 297
--------------------------------------------------------------------------------
Underlying
EBIT :
Bauxite &
Alumina (244) (63) >(100) % (188) (30) % (308) (332) (791)
Primary Metal 237 364 (35) % 245 (3) % 602 281 335
Metal Markets 147 146 1 % 45 >100 % 292 132 210
Rolled
Products 181 153 19 % 203 (11) % 334 354 637
Energy 268 517 (48) % 362 (26) % 784 918 1 459
Other and
eliminations (70) (38) (83) % (136) 48 % (109) (244) (553)
--------------------------------------------------------------------------------
Underlying
EBIT 518 1 077 (52) % 531 (2) % 1 596 1 109 1 297
--------------------------------------------------------------------------------
Underlying
EBITDA 1 624 2 165 (25) % 1 648 (1) % 3 789 3 428 5 827
--------------------------------------------------------------------------------
Underlying
income (loss)
from
discontinued
operations 112 49 >100 % 36 >100 % 163 33 (5)
--------------------------------------------------------------------------------
Net income (1 (1
(loss) (665) 263 >(100) % (1 737) 62 % (402) 162) 331)
Underlying
net income
(loss) 427 648 (34) % 243 76 % 1 076 476 408
--------------------------------------------------------------------------------
Earnings per
share (0.31) 0.14 >(100) % (0.80) 61 % (0.17) (0.56) (0.65)
Underlying
earnings per
share 0.19 0.30 (36) % 0.11 73 % 0.49 0.22 0.21
--------------------------------------------------------------------------------
Financial
data:
--------------------------------------------------------------------------------
Investments 612 1 056 (42) % 694 (12) % 1 668 1 469 3 382
Adjusted net
interest- (11 (20 (8
bearing debt (11 317) (9 290) (22) % (20 293) 44 % 317) 293) 304)
--------------------------------------------------------------------------------
Key
Operational
information
--------------------------------------------------------------------------------
Alumina
production
(kmt) 1 248 1 361 (8) % 1 491 (16) % 2 609 2 955 5 792
Primary
aluminium
production
(kmt) 483 478 1 % 502 (4) % 961 1 016 1 985
Realized
aluminium
price LME
(USD/mt) 1 926 2 043 (6) % 2 167 (11) % 1 986 2 161 2 080
Realized
aluminium
price LME 11 12
(NOK/mt) 11 217 11 533 (3) % 12 637 (11) % 378 12 523 047
Realized
NOK/USD
exchange rate 5.82 5.64 3 % 5.83 - 5.73 5.79 5.79
Metal
products
sales, total 1
Hydro (kmt) 789 806 (2) % 857 (8) % 595 1 728 3 254
Rolled
Products
sales volumes
to external
market (kmt) 245 236 4 % 228 8 % 482 455 909
Power
production
(GWh) 2 090 2 904 (28) % 2 513 (17) % 4 993 5 703 10 307
--------------------------------------------------------------------------------
Investor contact
Contact Rikard Lindqvist
Cellular +47 41751199
E-mail Rikard.Lindqvist(at)hydro.com
Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland(at)hydro.com
*********
Certain statements included within this announcement contain forward-looking
information, including, without limitation, those relating to (a) forecasts,
projections and estimates, (b) statements of management's plans, objectives and
strategies for Hydro, such as planned expansions, investments or other projects,
(c) targeted production volumes and costs, capacities or rates, start-up costs,
cost reductions and profit objectives, (d) various expectations about future
developments in Hydro's markets, particularly prices, supply and demand and
competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk
management, as well as (i) statements preceded by "expected", "scheduled",
"targeted", "planned", "proposed", "intended" or similar statements.
Although we believe that the expectations reflected in such forward-looking
statements are reasonable, these forward-looking statements are based on a
number of assumptions and forecasts that, by their nature, involve risk and
uncertainty. Various factors could cause our actual results to differ
materially from those projected in a forward-looking statement or affect the
extent to which a particular projection is realized. Factors that could cause
these differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium business;
changes in availability and cost of energy and raw materials; global supply and
demand for aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value of
currencies and the value of commodity contracts; trends in Hydro's key markets
and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been
correct. Hydro disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q2 presentation:
http://hugin.info/106/R/1717151/570878.pdf
Q2 report:
http://hugin.info/106/R/1717151/570880.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
[HUG#1717151]
Unternehmensinformation / Kurzprofil:
Datum: 18.07.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 279491
Anzahl Zeichen: 13573
contact information:
Town:
Oslo
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 108 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Norsk Hydro second quarter 2013: Result down on lower aluminium prices and power production"
steht unter der journalistisch-redaktionellen Verantwortung von
Norsk Hydro (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
