Financial and operating performance

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Underlying EBIT for 2016 decreased to NOK 6,425 million compared with NOK 9,656 million in 2015, primarily due to a decrease in realized alumina prices and all-in metal prices, partly compensated by positive currency effects, lower raw material costs and ongoing improvement efforts. In 2016, Bauxite & Alumina achieved record production at both Paragominas and Alunorte, Sapa's performance continued to improve, while Rolled Products delivered a weaker result driven by lower margins and higher costs.

Bauxite production in Paragominas amounted to 11.1 million mt for the year while alumina production from Alunorte was 6.3 million mt. Primary aluminium production was about 2.1 million mt and we delivered 2.9 million mt of casthouse products and liquid metal to internal and external customers. Downstream, we shipped roughly 0.9 million mt of rolled products to the market. Our energy business produced around 11.3 TWh of hydroelectric power. Hydro’s share of Sapa sales volumes were about 0.7 million mt.

In 2016, net cash provided by operating activities of NOK 10.0 billion compared with NOK 14.4 the previous year. Hydro further strengthened its financial position, ending the year with a net cash position of NOK 6.0 billion compared with NOK 5.1 billion at the end of 2015


 Underlying EBIT, in NOK million

Bauxite & Alumina 1,227  2,421
Primary Metal 2,258  4,628
Metal Markets 510  379
Rolled Products 708  1,142
Energy 1,343  1,105
Other and eliminations 3380  (19)
Underlying EBIT 6,425  9,656
  • Annual report 2016

Updated: January 25, 2017