• Record quarterly EARNINGS: NOK 3.2 billion
• Increased sales volume across the value chain
• Favorable foreign exchange development
• Acquisition of advanced separation technology in Germany
• Less fierce market with Chinese semi-finished exports

“It is a great satisfaction to be able to present record quarterly results for the second consecutive time since Hydro became an integrated aluminum company in 2007. & nbsp; We will continue to implement the improvement programs, while we are already investigating new measures that can expand the work in progress ”, says the executive president, Svein Richard Brandtzæg.

THE LAJIR of the Bauxite & amp; Alumina improved significantly, reflecting the increase in alumina sales and the appreciation of the dollar. The results were further strengthened by improvements in the area of expenses and revenues achieved with the “From B to A” program. The negative effects of alumina prices linked to the London Stock Exchange were partially offset by the increase in alumina with indexed prices. In addition, the extended maintenance that was carried out at one of the ball mills in Paragominas is now complete and the bauxite mine is operating normally.

The EBITDA in the last quarter of the Primary Metal business area was somewhat better than the previous one, influenced by the higher realized alumina prices and premium products computed in Norwegian kroner. Part of the results were offset, however, by higher costs with alumina and energy, which resulted in higher prices and adverse exchange effects.

“The market in which we operate is extremely competitive, hence the importance of working to strengthen our position, continuing to raise the quality of our portfolio, for example, with the acquisition of the most advanced separation technology in the world and with the construction of a recycling line for used beverage cans, in addition to the new production line for car body plates in Germany, which will lead us to have a leading position in the growing European market ”, says Brandtzæg.

The first quarter of this year in the Metal Markets business area showed a significant drop compared to the fourth quarter of last year. The results were affected by the decrease in commercial operations as a result of lower premium prices for unalloyed aluminum. The negative results were, however, partially offset by the positive results of the remelting businesses, which sold premium products at higher prices and had higher volumes in Europe during the season.

Compared to the fourth quarter of 2014, the EBITDA in the Rolled Products business area was higher, especially due to seasonal sales, higher operating margins and export exchange returns.

The first quarter of the year was also slightly better for the Energy business area, which increased its production, even though it had to face lower prices and higher production costs.

The new joint venture, Sapa, had a higher EBITDA in the period, compared to the previous quarter, due to greater seasonal demand, continued growth in North America and positive results from its improvement programs.

Hydro's operating cash flow was NOK 1.4 billion in the first quarter. Of these, NOK 0.9 billion was used in investment activities and the company's net debt was NOK 0.3 billion at the end of the same quarter, influenced by the effects of NOK 0.7 billion exchange rate calculations resulting from the appreciation of the US dollar. compared to the Norwegian krone.

Earnings before interest and taxes totaled NOK 3.2 billion in the first quarter of 2015. In addition to the factors mentioned above, the reported LAJIR includes unrealized gains on derivatives and favorable effects of the metal for a total of NOK 72 million. The reported result also includes NOK 74 million at Sapa (Hydro's share), largely related to unrealized derivative losses. & Nbsp; & nbsp;
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In the previous quarter, the reported operating results amounted to NOK 2.295 billion, including net unrealized derivative losses and positive effects of the metal, which, in total, represent a loss of NOK 72 million. The reported profits also include amortization costs of NOK 145 million for the Italian laminate plant, Slim. In addition, the declared LAJIR includes costs of NOK 337 million with Sapa (Hydro's share), related to depreciation and restructuring and other net costs of NOK 36 million.

In the first quarter, net revenues were NOK 1.072 billion, including a net foreign exchange loss of NOK 1.587 billion due to the appreciation of the US dollar. In the previous quarter, net revenues amounted to a loss of NOK 168 million, including net foreign exchange losses of NOK 2.253 billion.

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