• Adjusted EBIT of NOK 518 million
• Lower prices for alumina and aluminum
• Weaker earnings for Energy, mainly due to low seasonal production
• Production at Bauxite & amp; Alumina affected by power failure
• Higher result for Rolled Products thanks to increasing sales
• Growth prospects for aluminum demand outside of China: 2-4%

“Even if the global macroeconomic environment continues to pose challenges, it can be expected that aluminum demand will continue to increase this year. Hydro expects supply and demand to strike a balance in 2013, ”said Hydro Svein CEO Richard Brandtzæg.

The adjusted result for bauxite & amp; Alumina declined compared to the first quarter, primarily due to the LME-linked alumina prices and lower bauxite mining. Alumina production was even lower than in the previous quarter when it was already at a low level. The reason for this was an external power failure that affected the Alunorte alumina refinery.

"Hydro's main focus is on company-wide improvement measures, the most important being the implementation of measures to stabilize and increase production after the power failure, which led to production interruptions at Alunorte," says Brandtzæg. The interruptions will initially focus on the From B to A improvement program in the Bauxite & amp; Alumina will impact, but Hydro expects to save NOK 1 billion in savings by the end of 2015, as originally planned.

Primary Metal posted lower adjusted earnings in the second quarter, mainly due to lower aluminum prices. Adjusted EBIT for Metal Markets was stable compared to the previous quarter.

Compared to the first quarter, adjusted EBIT of Rolled Products increased due to seasonally higher sales, which was partially offset by lower margins. The operating costs per ton decreased.

Adjusted EBIT for the Energy business area declined compared to the first quarter, primarily due to the seasonally lower power generation after a high level of production was achieved in the first quarter.

Cash flow from operations in the second quarter was NOK 1.0 billion. Cash flow for investing activities was NOK 0.5 billion. A dividend of CZK 1.7 billion was paid out in the quarter. Hydro's net debt was approximately NOK 1.3 billion at the end of the second quarter.

Reported earnings before interest and taxes in the second quarter were NOK 375 million. In addition to the factors mentioned above, reported EBIT included unrealized losses from derivatives and positive metal effects totaling NOK 74 million, as well as rationalization and closure costs of NOK 86 million and gains on divestments of NOK 16 million. In the previous quarter, adjusted EBIT was NOK 705 million, including unrealized gains from derivatives and positive metal effects of NOK 294 million and rationalization and closure costs of NOK 78 million.

Continuing operations reported a loss of NOK 713 million in the second quarter, including a net currency loss of NOK 1,291 million. In the previous quarter, the result from continuing operations was NOK 254 million, including a net currency loss of NOK 115 million.

Income from discontinued operations was NOK 48 million in the second quarter, which includes rationalization and closure costs of NOK 77 million. In the previous quarter, the result from discontinued operations was NOK 9 million, which included NOK 40 million in rationalization and closure costs.

Hydro already placed about 50 percent of the expected aluminum production on the market in the third quarter of 2013, at a price of around $ 1,850 per ton. The volumes of the Qatalum hut are not included.

The Alunorte alumina refinery and Albras smelter have signed forward exchange contracts in US dollars for the second half of 2013 and for 2014 totaling $ 800 million. This reduces the USD / BRL exchange rate risk of the units and thus that of Hydro. The agreed average exchange rate for the futures contracts is 2.25 and 2.37 for 2013 and 2014, respectively. Forward contracts are accounted for as hedges. & nbsp;

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