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- Adjusted EBIT of NOK 1,077 million
- Higher seasonal sales
- Higher prices for alumina and aluminum
- Higher production and higher electricity prices in the Energy business area
- Still challenging market conditions
"We continue to see positive effects of our ambitious improvement measures throughout the company, which strengthens our position in the industry. We will intensify our efforts, especially in the strategically important business area Bauxite & amp; Alumina, where operational performance has top priority, ”says Hydro Svein CEO Richard Brandtzæg.
“Overall, we are experiencing increasing macroeconomic uncertainty. We anticipate a market balance for primary aluminum in 2013, based on the expected growth in demand outside of China of two to four percent, the announced production cuts and the newly added production, "said Brandtzæg.
Adjusted earnings (EBIT) in the Bauxite & amp; Alumina was stable compared to the previous quarter. Positive effects from higher prices for alumina, linked to the LME price, were offset by higher electricity costs.
Thanks to higher aluminum prices, higher product surcharges and seasonally higher sales, the Primary Metal business unit reported better adjusted earnings (EBIT) than in the fourth quarter. Hydro's share of Qatalum's adjusted earnings also improved in the quarter.
Higher sales and higher margins for the remelting plants, along with better results from procurement and trading activities, had a positive impact on Metal Markets' adjusted earnings (EBIT) in the quarter.
Adjusted earnings (EBIT) for the Rolled Products business area increased compared to the fourth quarter, with seasonally higher deliveries and higher margins playing a role. Operating costs were stable.
Adjusted earnings (EBIT) for the Energy business area rose in the quarter, which was mainly due to higher production and higher prices.
The Other and Eliminations result includes positive effects linked to unrealized gains and losses from internal inventory, compared to significant negative effects in the previous quarter.
Cash flow from operations was NOK 0.5 billion in the first quarter. Cash flow for investing activities was NOK 0.5 billion. Hydro's net liquidity was approximately NOK 0.4 billion at the end of the first quarter, which was also impacted by cash flow from discontinued operations and lease liabilities.
Reported earnings before financial items and taxes were NOK 705 million in the first quarter. In addition to the factors mentioned above, reported EBIT included unrealized losses from derivatives and positive metal effects totaling NOK 294 million and rationalization and closure costs of NOK 78 million. In the previous quarter, adjusted EBIT was NOK 704 million, including unrealized gains from derivatives and positive metal effects of NOK 555 million and other items that had a negative effect of NOK 23 million.
Income from continuing operations was NOK 254 million in the first quarter, including a net currency loss of NOK 115 million. In the previous quarter, the result from continuing operations was NOK 334 million, including a net currency loss of NOK 102 million.
Income from discontinued operations was NOK 9 million in the first quarter, including NOK 40 million in rationalization and closings costs. In the fourth quarter, the loss from discontinued operations was NOK 247 million, which included NOK 174 million in rationalization and closure costs.
With effect from January 1, 2013, Hydro retrospectively introduced a new accounting standard for Employee Benefits (IAS19R), which in this report leads to changes for earlier periods.
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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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Revenue | 16,111 | 15,585 | 3% | 17,044 | (5)% | 64,181 |
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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 |
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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 |
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Underlying EBITDA | 2,165 | 1,250 | 73% | 1,780 | 22% | 5,827 |
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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 |
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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 |
Published: 24 April 2013