Higher aluminium prices help Norsk Hydro through Q4

Norsk Hydro posted an update for the fourth quarter of 2016 on Thursday, with underlying EBIT of NOK 1.83bn as a result of higher realised all-in aluminium and alumina prices.

The London-listed firm reported record production at Alunorte and Paragominas, although there were weak Rolled Products results as a result of lower sales and margins and increased costs.

“Demand for aluminium remains firm and prices have increased, contributing to a solid quarter for Hydro,” said president and CEO Svein Richard Brandtzæg.

“I am particularly pleased to see more and more car producers choosing aluminium for light-weighting and climate purposes.

“I am eager to see our new Rolled Products automotive line in Germany ramping up this year to meet the rapidly growing automotive demand.”

Brandtzæg said the company made better-than-expected progress in its ‘Better’ improvement efforts, delivering NOK 1.4bn in improvements in 2016.

“These efforts will continue with full force in 2017, making Hydro's operations more robust across the value chain and the company well positioned for a better, bigger and greener future.”