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First quarter of 2013: Better results in volumes and prices

Hydro's revenues before financial items and taxes amounted to NOK 1.077 million in the first quarter, from a level of NOK 172 million in the fourth quarter of 2012. Higher alumina, aluminum and energy prices, in addition to higher volumes sales and better margins, contributed to the improvement of results.

  • NOK 1.077 million LAJIR
  • Higher sales volumes driven by seasonality
  • Higher realized prices for alumina and aluminum
  • Higher production and higher energy prices
  • Markets continue to challenge

"We continue to see the positive effects of our ambitious efforts across the company, strengthening our position in the sector. We will continue to strive to strengthen the company, especially in the important Bauxite and Alumina business area, where operational performance has a high priority ", points out Svein Brandtzæg, president of Hydro.
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" In general terms, we are facing a situation of uncertainty globally. Based on the expectations of 2-4% growth of demand outside China in 2013, in the announced reductions and new production on the way, we expect to have a balanced primary metal market.
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Bauxite & Alumina's EBITDA remained stable compared to the quarter However, the positive effects of the higher alumina price on the London Stock Exchange were diluted in view of the higher energy costs.
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Metal Primário showed an improvement in LAJIR in relation to quar the quarter, with higher realized prices for aluminum, higher premiums and higher seasonal sales volumes. & nbsp; Hydro's share of Qatalum's underlying results also improved during the quarter.
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Larger volumes and higher margins in remelting operations, combined with better results from the outsourcing and commercialization activities, had a positive impact on the EBITDA of Mercados de Metal during the quarter.
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The EBITDA of Produtos Laminados increased compared to the fourth quarter, due to seasonality and larger volumes with higher margins. Operating costs, on the contrary, remained stable.
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The EARNINGS of Energy increased in the quarter, in view of the higher production at this time of the year and at higher prices.
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LAJIR's "Others and Eliminations" items included positive effects associated with the elimination of unrealized gains and losses from internal inventories, compared to the significant negative amounts of the previous quarter.
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operating cash flow stood at NOK 0.5 billion in the first quarter. The net cash used for investments also totaled NOK 0.5 billion. Hydro's net cash position was around NOK 0.4 billion at the end of the first quarter, influenced by the cash used to discontinue capitalized finance lease operations and obligations.
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Profits before of financial items and taxes totaled NOK 705 million in the first quarter. & nbsp; & nbsp; In addition to the factors previously mentioned, LAJIR included unrealized derivative net losses and the positive effects of metal, which totaled NOK 294 million, and rationalization and closing costs of NOK 78 million. & Nbsp; In the previous quarter, LAJIR totaled 704 million including unrealized gains with derivatives and positive effects of NOK 555 million metal and other items totaling NOK 23 million negative.
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Income from continuing operations was NOK 254 million in the first quarter, including exchange losses of NOK 115 million. In the previous quarter, proceeds from continuing operations totaled NOK 334 million, including currency losses of NOK 102 million.
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Revenues from discontinued operations totaled NOK 9 million in the first quarter, including rationalization costs and closing of NOK 40 million. In the fourth quarter, losses resulting from discontinued operations totaled NOK 247 million, including the rationalization and closing costs of NOK 174 million.
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As of January 1, 2013, Hydro has adopt a new standard for accounting for employee benefits (IAS19R), with retroactive application, which led to changes to previous periods in this report.

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Key financial information
NOK million, except per share data First
quarter
2013
Fourth
quarter
2012
% change prior quarter First
quarter
2012
% change prior year quarter Year
2012
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& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Revenue 16,111 15,585 3% 17,044 (5)% 64,181
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Earnings before financial items and tax (EBIT) 705 704 - 710 (1)% 571
Items excluded from underlying EBIT 372 (532) & gt; 100% (132) & gt; 100% 725
Underlying EBIT 1,077 172 & gt; 100% 578 86% 1,297
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Underlying EBIT: & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Bauxite & amp; Alumina (63) (73) 13% (144) 56% (791)
Primary Metal 364 58 & gt; 100% 36 & gt; 100% 335
Metal Markets 146 70 & gt; 100% 88 66% 210
Rolled Products 153 70 & gt; 100% 150 2% 637
Energy 517 322 60% 556 (7)% 1,459
Other and eliminations (38) (275) 86% (108) 64% (553)
Underlying EBIT 1,077 172 & gt; 100% 578 86% 1,297
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Underlying EBITDA 2,165 1,250 73% 1,780 22% 5,827
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Underlying income (loss) from discontinued operations 49 & nbsp; (55) & gt; 100% (3) & gt; 100% (5)
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Net income (loss) 263 87 & gt; 100% 575 (54)% (1,331)
Underlying net income (loss) 648 (24) & gt; 100% 233 & gt; 100% 408
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Earnings per share 0.14 0.06 & gt; 100% 0.24 (43)% (0.65)
Underlying earnings per share 0.30 (0.01) & gt; 100% 0.12 & gt; 100% 0.21
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Financial data: & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;
Investments 1,056 1,107 (5)% 776 36% 3,382
Adjusted net interest-bearing debt (9,290) & nbsp; (8.304) (12)% (11,470) 19% (8.304)
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Key operational information
Alumina production (kmt) 1,361 1,397 (3)% 1,464 (7)% 5,792
Primary aluminum production (kmt) 478 485 (1)% 514 (7)% 1,985
Realized aluminum price LME (USD / mt) 2,043 1,940 5% 2,155 (5)% 2,080
Realized aluminum price LME (NOK / mt) 11,533 11,069 4% 12.404 (7)% 12,047
Realized NOK / USD exchange rate 5.64 5.71 (1)% 5.75 (2)% 5.79
Metal products sales, total Hydro & nbsp; (kmt) 754 731 3% 872 (13)% 3,254
Rolled Products sales volumes to external market (kmt) 236 226 5% 227 4% 909
Power production (GWh) 2,904 2,448 19% 3,190 (9)% 10.307

 

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