• Adjusted EBIT of NOK 2.67 billion
• Alunorte, Paragominas and Albras produce 50%, with a negative influence on the results. & nbsp; Technical and social agreements signed with the Brazilian authorities
• Higher realized alumina and aluminum prices
• Increase in raw materials and fixed costs
• High energy results with better energy prices
• Stable downstream results
• Better improvement program affected by Alunorte's situation, inability to reach the 2018 target
• Expectation of deficit in the global primary aluminum market in 2018
• Continuation of an uncertain market due to United States tariffs, sanctions against Rusal and the situation of Alunorte

"The third quarter reflected the challenges that we continue to have at Alunorte and the high cost of raw materials, but the quarter received the positive contribution of higher alumina and aluminum prices and strong results in Energy. aluminum is increasingly fierce and the expectation is that the global primary aluminum market will run a deficit in 2018, ”said Hydro President and CEO Svein Richard Brandtzæg.

The adjusted EBIT of the Bauxite & amp; Alumina increased compared to the third quarter of 2017. The higher realized alumina sales price and the positive exchange rate effects were partially affected by the increase in the price of raw materials and the reduction in production at Alunorte and Paragominas. An item with a cost of NOK 519 million, related to technical and social agreements, was excluded from the adjusted EBIT of the business area in this third quarter.

“The signing of the technical and social agreements in Brazil in September was a step in the right direction for the normalization of production. We continue to talk to the authorities with the aim of resuming full production at Alunorte, but when that should happen, it remains to be seen ”, said Brandtzæg.

In the Primary Metal business area, adjusted EBIT was lower than in the third quarter of the previous year, due to the increase in fixed costs and raw materials, which were partially offset by the increase in the price of all-in metal. In addition, the sale of surplus energy, resulting from reduced production at the Albras foundry plant, was a positive contribution to the business area.

Also in Mercados de Metal, the adjusted EBIT was lower than that of the same quarter in 2017. The negative exchange effects and a lower contribution from the supply and marketing activities were, however, offset in a certain way by better results refusers.

The adjusted EBIT of the Rolled Products business area showed a slight decrease in the period, compared to the same period last year, as the increase in margins and the better performance of Linha Automotiva 3 were affected by the increase in costs. The results of the Neuss smelting plant were also less, and the positive effects of the new energy contract, the UBC line and the evolution of all-in metal prices were more than affected by the increase in the price of raw materials.

The Extruded Products business area, in turn, kept its adjusted EBIT stable, compared to the pro forma adjusted EBIT in the third quarter of last year. The positive effect of higher margins and sales volumes were, however, partially affected by the increase in production costs, related to the launch of new product lines in Europe, in addition to the negative effects of premium products in the central North region. and Article 232 on tariffs in the United States. The additional costs of integrating and restructuring two extrusion plants recently acquired in Brazil also had a negative impact in the quarter.

The Energy business area, however, had an adjusted EBIT significantly improved, compared to the same quarter last year. The increase was largely the result of a substantial rise in prices and production, which was affected by the negative effects of the new price stipulation of an internal energy contract with the Neuss refiner.

Due to the situation that Alunorte has been going through, the “Better” improvement program will not reach its target of NOK 500 million for 2018.

Hydro's net debt position had fallen from NOK 7.5 billion to NOK 6.5 billion by the end of the quarter; net cash reserved for operating activities amounted to NOK 2.6 billion, and net cash for investment activities, excluding short-term investments, totaled. NOK 1.5 billion.

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