Norsk Hydro Q1 Net Loss Widens, Revenue Edges Up

(RTTNews) - Norwegian aluminium and renewable energy company Norsk Hydro ASA (NHY, NHYDY.PK, NHYDY.PK) reported Wednesday that its first-quarter net loss was 2.03 billion Norwegian Kroner, compared to last year's loss of 124 million kroner. Loss per share was 0.88 krone in the latest quarter.

Underlying net income was 1.15 million kroner, compared to 124 million kroner last year. Underlying earnings per share were 0.55 krone, compared to 0.13 krone a year ago.

Hydro's reported EBIT surged to 2.30 billion kroner from 20 million kroner last year. Underlying EBIT was 2.25 billion kroner, up from 559 million kroner a year ago.

Underlying EBITDA climbed 67 percent from last year to 4.40 billion kroner.

The company noted that successful ramp-up of production at the Alunorte refinery, reduced costs and positive currency effects all contributed positively to first-quarter results.

These were partly offset by lower realized alumina and aluminium prices.

The company said the Covid-19 situation causes significant market uncertainty, however, the financial impact from reduced operations due to Covid-19 was limited in the first quarter, mainly affecting Extruded Solutions.

Revenue grew 1 percent to 38.12 billion kroner from 37.58 billion kroner last year.

Bauxite production and Alumina production both climbed 90 percent.

Further, the company announced Board resolution to amend dividend proposal of NOK 1.25 per share and instead propose that Board is authorized to resolve distribution of dividend at later stage if conditions allow for it.

Going ahead, 2020 is estimated behind full year target due to Covid-19 demand decline, while 2023 improvement target is unchanged.