Skip to content

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 Q3 2021 as provided in the Q2 2021 presentation:

Hydro Bauxite & Alumina

  • Alunorte expected to produce around nameplate capacity
  • Lower operational costs from decommissioned crane (NOK ~100 million)
  • Higher raw material prices
  • Annual maintenance of coal boilers

Hydro Aluminium Metal

  • ~67% of primary production for Q3 priced at USD 2 362 per mt 8
  • ~62% of premiums affecting Q3 booked at USD ~481 per mt 8
    • Q3 realized premium expected in the range of USD 400-450 per ton
  • Increasing raw material costs, mainly carbon and energy

Metal Markets

  • Volatile trading and currency effects
  • Summer maintenance at recyclers

Hydro Extrusions

  • Seasonally lower sales
  • Positive demand outlook compared to market
  • Higher costs and lower margins YoY
  • Investments in Cressona, US and Nenzing, Austria

Hydro Energy

  • Volume and price uncertainty, low reservoir levels
  • Average NO2 spot price ~599 NOK/Mwh (July 1-20)

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 Q2 Investor presentation.

Publicly available information regarding the market prices and currency developments in Q3:

  • The average LME-cash market rate in Q3 is 2647 USD vs USD 2399 in Q2. Realized price in PM lags LME spot with 1-2 months
  • The average spot PAX alumina price in Q3 is USD 326 vs USD 277 in Q2. 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 Q3 is 8.76 vs 8.37 in Q2
  • The average USD/BRL market rate in Q3 is 5.23 vs 5.29 in Q2
  • The Nordpool power price for NO2 (where Hydro has ~2/3 of the production) in Q3 is NOK/MWh 807 vs 493 NOK/MWh in Q2 
  • The Nordpool power price for NO5 (where Hydro has ~1/3 of the production) in Q3 is NOK/MWh 800 vs 467 NOK/MWh in Q2
  • The Nordpool power price for NO3 in Q3 is 536 NOK/MWh vs 336 NOK/MWh in Q2

Recommended for you