Hydro Reports Record Results for Apr-Jun 2021 Quarter
Norsk Hydro ASA has posted second-quarter 2021 adjusted EBITDA of NOK 6,598 million, up from NOK 2,794 million in the same quarter last year. Continued global economic recovery is supporting increased demand for aluminium and aluminium products. Hydro Aluminium Metal and Hydro Extrusions business areas reported record quarterly results. Higher all-in metal prices and volumes in Aluminium Metal, improved margins and volumes in Extrusions, and better results from Hydro Energy contributed positively to adjusted EBITDA. These positive elements were partly offset by higher raw material costs upstream and negative currency effects.
Record result in Aluminium Metal supported by LME prices and premiums
Robust operations, improvement program ahead of plan
Strong performance in Extrusions and progress on growth initiatives
Strengthening sustainability position with growth investments in recycling
Sale of Hydro Rolling business area to KPS Capital Partners completed
The second quarter saw a continuation of the global recovery which began in late 2020. The global economic outlook continues to improve, supported by progress on vaccination and fewer new cases of Covid-19. As a result, global demand for aluminium increased, and the primary aluminium market for 2021 is expected to remain largely balanced.
During the quarter, Aluminium Metal signed a letter of intent with Midwest Energy and Communications to build an aluminium recycling plant in Michigan in US The facility is projected to produce 120,000 tonnes of aluminium per year from 2023 and marks the first large-scale production of low-carbon Hydro CIRCAL in North America. In addition, investment decisions to increase recycling capacity by a total of 65,000 tonnes have been made at our operations in Sjunnen in Sweden, Navarra in Spain, and Rackwitz in Germany.
Hydro has also explored growth opportunities and partnerships in new energy during the quarter. Hydro's dedicated company for renewables development, Hydro REIN, and Swedish wind developer Eolus agreed to acquire Stor-Skälsjön, a licensed wind power project in Sweden totaling 260 MW. Hydro REIN, along with Equinor and RWE Renewables, has also signed a collaboration agreement to prepare and submit an application to develop a large-scale fixed-bottom offshore wind farm in the Norwegian North Sea (Sørlige Nordsjø II).
Hydro sees a substantial potential for industrial hydrogen consumption, which will help reduce our CO2 emissions. In the second quarter, Hydro's newly established hydrogen company signed a Memorandum of Understanding with Everfuel. The two companies will use the capacity in future Hydro-owned or jointly owned hydrogen production facilities to supply the maritime sector, industry and the green mobility market in Europe with renewable hydrogen.