• NOK 1.490 billion LAJIR
• All-in metal and alumina prices achieved higher during the period
• Lower operating costs at Alunorte
• Expectation of 3-4% growth in demand for primary aluminum in the world outside China
• Demand for primary aluminum in the world, outside China, continues to exceed production

"All-in metal prices continued to rise this quarter, reflecting the tougher market we saw last quarter and the continued deficit balance in the market,” said Hydro's executive chairman, Svein Richard Brandtzæg. “ The demand for aluminum is growing and we now see that the growth in demand is between three and four percent in the world, apart from China, for 2014, helped with the replacement that has been happening in the automotive market ”, explains Brandtzæg.

THE LAJIR of Bauxite & amp; Alumina improved significantly in the third quarter, reflecting higher realized alumina prices and lower operating costs at Alunorte. The realized price of alumina, however, was negatively impacted by a smaller share of sales at indexed prices.

"It is a pleasure to see that the improvement program“ From B to A ”has been progressing as planned and that the efforts made at Bauxita & amp; Alumina are being reflected in profits. Alunorte's operating costs are falling and this is a excellent opportunity to achieve our goals, ”added Brandtzæg.

The Primary Metal business area improved EBITDA substantially in the third quarter, influenced by the higher realized alumina prices and the increase in premium products. This positive development was partially affected by the increase in raw material costs and the seasonally lower sales volumes.

The EBITDA of Mercado de Metais was higher compared to the previous quarter due to a better result on the issue of supply and commercial activities and also by the positive effects of the appreciation of the stock of ingots.

The Laminated Products business area had a substantially higher EBITDA compared to the second quarter of 2014, especially due to the positive contribution of the Rheinwerk plant, which was reflected in the metal's all-in prices. There was more pressure on margins, but this was partially offset by lower seasonal costs. The volumes remained stable.

Compared to the second quarter, the LAJIR of the Energy business area was higher, mainly due to the increase in hydroelectric energy prices in our production areas and differences in lower price areas.

Sapa, however, showed a decrease in LAJIR compared to the second quarter, partly influenced by the lower sales volumes of this season in Europe.

Operating cash flow totaled NOK 1.1 billion in the third quarter, including an increase of NOK 0.9 billion in working capital. The net cash used for investment activities reached NOK 0.9 billion. Hydro's net debt was NOK 2.1 billion at the end of the third quarter.

Earnings reported before interest and taxes totaled NOK 1.937 million in the third quarter. In addition to the factors discussed above, the reported LAJIR includes net gains on realized derivatives and positive metal effects of NOK 476 million in total. Reported earnings also include NOK 30 million in other expenses.

In the previous quarter, reported earnings before interest and taxes amounted to NOK 620 million, including net gains on realized derivatives and positive metal effects of NOK 154 million in all. Reported profits also included expenses of NOK 87 million at Sapa (Hydro's share), due in particular to rationalization activities.

Revenue from continuing operations totaled NOK 665 million in the third quarter, including a net foreign exchange loss of NOK 1.001 billion. In the previous quarter, revenue from continuing operations totaled NOK 269 million, including net foreign exchange loss of NOK 101 million.

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