• Adjusted EBIT of NOK 3.14 billion
• Alunorte's production reduced to 50% since March 1, negotiations with Brazilian authorities in progress
• Alumina and aluminum all-in at higher prices, partially affected by the high cost of raw materials
• Strong results in the Extruded Products Solutions business area
• “Better” improvement program affected by the situation in Brazil, expectation of not reaching the target for 2018
• Karmoy's technology pilot project accelerates production during the first half of 2018
• Global primary aluminum demand growth perspective of 4-5% in 2018, market towards deficit - greater uncertainty in the market with tariffs in the United States, sanctions against Rusal and the situation in Brazil

"We maintain our same expectation of global growth in primary aluminum demand by 4-5% and we expect the market to move towards a primary aluminum deficit in 2018” , said Hydro President and CEO Svein Richard Brandtzæg.

"The United States sanctions against Rusal have caused great uncertainty in the aluminum markets worldwide and will impact trade flows and availability of raw materials throughout the value chain of the Alunorte's embargo by the Brazilian authorities causes even more uncertainty in the aluminum industry and has already cut 50% of production at the primary aluminum plant Albras and 50% of production at the Paragominas bauxite mine, "said Brandtzæg. < / p>

The 50% restriction on Alunorte's production and the subsequent reduction in Hydro Paragominas' production in March had a negative impact on the results of the Bauxita & amp; Alumina in the first quarter. The area's adjusted EBIT was similar to the first quarter of last year. Such results were obtained with the increase in the sale price of alumina, which was affected by the increase in the price of raw materials and the reduction in production at both plants.

Adjusted EBIT in the Primary Metal business area declined compared to the first quarter of last year, due to the higher cost of raw materials, but it was also partially offset, by the high prices of all-in metal.

"Karmoy's technology pilot project has been increasing its production. We are delighted to see that we are putting the most efficient technology in the world into terms of climate and energy. We will continue to increase production throughout the first half of this year, ”he said.

In Metal Markets, adjusted EBIT grew compared to the first quarter of last year. The increase is due to the increase in sales volume and the better margins of the refineries, in addition to better supply and commercialization results, and positive effects of inventory valuation.

Also in the Rolled Products business area, adjusted EBIT was higher than in the first quarter of 2017. However, the increase in margins and a higher production performance were partially impacted by the negative exchange effects . The results of the Neuss refiner improved due to the positive effects of the new energy contracts, including an internal contract with the Energy business area.

The adjusted EBIT of the Extruded Products business area increased, if we compare it with the pro forma EBIT of the first quarter of 2017, driven by higher sales volumes and margins.

"Hydro's priority is to continue an integration of Extruded Products Solutions that generates value creation. We see that the business area continues to have a strong record of improvements, offering value-added solutions for customers around the world, ”said the president.

The adjusted EBIT in the Energy business area, in turn, decreased, compared to the same quarter last year. This fall was due, in particular, to the drop in production and the negative effects of a new price stipulation for internal energy contracts with the Neuss refiner. Such negative effects were partially offset by higher sales prices. Production in the first quarter declined because of a planned maintenance interruption at one of the power plants.

Due to the situation in Brazil, the expectation is that the “Better” improvement program will not reach its target of NOK 500 million for 2018.

Hydro's net debt position improved from NOK 4.1 billion to 3.6 billion at the end of the quarter. The net cash obtained from operating activities totaled NOK 2.0 billion, and the net cash used in investment activities, with the exception of short-term investments, totaled NOK 1.5 billion.

In addition to the factors presented above, earnings reported before interest and taxes (EBIT) and net revenue include the effects listed in the table below. Items excluded from adjusted EBIT and adjusted net revenue (losses) are defined and described as part of the alternative earnings target (APM) section in the quarterly report.

(in English)