Solid results in some areas, weak downstream demand, higher fixed costs contribute to mixed markets
From GlobeNewswire: 2024-07-23 01:00:00
Hydro’s adjusted EBITDA for Q2 2024 was NOK 5,839 million, down from NOK 7,098 million last year due to lower Extrusions volumes. Revenue drivers and alumina prices rose, offset by weak downstream results and higher fixed costs.
Contractor passed away at Albras in Brazil during maintenance work. Global primary aluminium demand increased by 2% year-on-year in Q2 2024, driven by China. Economic growth forecasts stable, with real GDP growth estimated at 2.7% in 2024.
Positive revenue drivers supported solid results in Bauxite & Alumina and Aluminium Metal in Q2. Aluminum prices rose, driving the World ex-China market into balance. Downstream demand weakened, challenging recycling margins, and extrusion demand forecasts revised down.
Hydro Extrusions responds to weak markets with mitigating measures. New OEM contracts added, aiming to reach NOK 8 billion EBITDA target for 2025. Invests $85 million in a new casting line in the U.S. to meet automotive demand. Hydro CIRCAL sales strong, aligning with 2030 recycling targets.
Hydro signs agreement with Porsche for low-carbon aluminium supply, aiming for NOK 2 billion earnings uplift by 2030. Launches renewable energy partnership with Macquarie Asset Management, creating Hydro Rein joint venture. Business areas see varied performance, with Bauxite & Alumina EBITDA rising, and Energy EBITDA falling.
Read more at GlobeNewswire:: Solid upstream results, mixed markets