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Quarterly guiding

Ahead of the quarterly results release, we remind you of the relevant publicly available information and guidance for the next quarter.

Business area outlook for Q2 2020 as provided in the Q1 2020 presentation:

Bauxite & Alumina

  • Reduced raw material costs
  • Significant market uncertainty

Primary Metal

  • ~ 55% of primary production for Q2 priced at USD 1,650 per mt (bookings per March 31, 2020)
  • ~ 60% of premiums affecting Q2 booked at USD ~260 per mt (bookings per March 31, 2020)
  • Q2 realized premium expected in the range of USD 200-250 per mt
  • Significant market uncertainty

Metal Markets

  • Volatile trading and currency effects
  • Significant market uncertainty, reduced capacity utilization at remelters

Rolled Products

  • High market uncertainty, weaker demand amid Covid-19
  • Neuss results driven by all-in metal and raw material price development 

Extruded Solutions

  • High market uncertainty, weaker demand amid Covid-19

Energy

  • Volume and price uncertainty
  • Average NO2 spot price ~50 NOK/MWh in March

Additional information

  • The latest available price and currency sensitivities for earnings (as well as information on the price time lags for revenues and costs), are included in the Q1 Investor presentation
  • We also remind about the operational update with quarter-to-date volumes for April and May shared on June 15

Publicly available information regarding the market prices and currency developments in Q2:

  • The average LME-cash market rate in Q2 was USD 1,493 vs USD 1,688 in Q1. Realized price in PM lags LME spot with 1-2 months
  • The average spot PAX alumina price in Q2 was USD 244 vs USD 284 in Q1. Alumina prices in B&A are realized with ca one month lag, in PM with 2-3 months lag
  • The average USD/NOK market rate in Q2 was 10.01 vs 9.49 in Q1
  • The average USD/BRL market rate in Q2 was 5.38 vs 4.47 in Q1
  • The Nordpool power price for NO2 (where Hydro has ~2/3 of the production) in Q2 was NOK/MWh 50 vs 154 NOK/MWh in Q1 
  • The Nordpool power price for NO5 (where Hydro has ~1/3 of the production) in Q2 was NOK/MWh 50 vs 154 NOK/MWh in Q1
  • The Nordpool power price for NO3 in Q2 was 62 NOK/MWh vs 158 NOK/MWh in Q1

We kindly remind you about our two-week silent period prior to the announcement date, starting on July 8.

Updated: July 02, 2020