Quarterly guidance

Ahead of the quarterly results release, Hydro Investor Relations reminds analysts and investors about the relevant publicly available information and guidance for the next quarter

Business area outlook for Q4 2017 as provided in the Q3 2017 presentation:

Bauxite & Alumina

    • Stable production at Alunorte and Paragominas
    • Increased caustic soda and bauxite costs
    • Increased fixed costs and depreciation
    • Increased alumina prices

Primary Metal

    • ~ 55% of primary production for Q4 priced at USD ~2 075 per mt
    • ~ 55% of premiums affecting Q4 booked at USD ~300 per mt
      • Q4 realized premium expected in the range of 225-275 USD/mt
    • Increased alumina, carbon anode, energy and fixed costs

Metal Markets

    • Volatile trading and currency effects

Rolled Products

    • Seasonally lower sales volumes and increased maintenance
    • Part of negative operational effects to continue into Q4
    • Raw material cost increases for Neuss

Energy

    • Price and volume uncertainty
    • Lower property taxes

Additional information

    • The latest available price and currency sensitivities for earnings are included in the Q3 Investor presentation 

Publicly available information regarding the market prices and currency developments in Q4 2017:

    • Average LME-spot market rate in Q4 was USD 2 102 vs USD 2 012 in Q3.
    • Average USD/NOK market rate in Q4 was 8.16 vs 7.96 in Q3.
    • The Nordpool power price for NO2 (where Hydro has ~2/3 of the production) in Q4 was 287 NOK/MWh vs 258 in Q3 
    • The Nordpool power price for NO5 (where Hydro has ~1/3 of the production) in Q4 was 288 NOK/MWh vs 258 in Q3
    • The Nordpool power price for NO3 in Q4 was 291 NOK/MWh vs 267 in Q3

Updated: February 8, 2018