Norsk Hydro Q1 Profit Up 13%; Affirms FY18 Global Demand Outlook - Quick Facts

(RTTNews) - Norwegian aluminium producer Norsk Hydro AS (NHY, NHYDY.PK, NHYDY.PK) reported that its first-quarter net income grew 13 percent to 2.08 billion Norwegian Kroner from last year's 1.84 billion Kroner. Earnings per share rose to 1.02 Krone from 0.86 krone a year ago.

Underlying net income was 2.20 billion kroner or 1.06 krone per share, compared to 1.58 billion kroner or 0.75 krone per share last year.

Earnings before financial items and tax or EBIT climbed 37 percent from last year to 3.30 billion kroner, and underlying EBIT grew 38 percent to 3.15 billion kroner.

Underlying EBITDA, a key earnings metric, was 5.04 billion kroner, up 39 percent from the prior year.

The company said the increase in profit mainly reflected higher all-in metal and higher realized alumina prices, partly offset by higher raw material costs.

Revenue for the quarter surged 74 percent to 39.97 billion kroner from 23.03 billion kroner last year.

"We maintain the view of a global primary demand outlook of 4-5 percent, expecting the market moving towards a deficit for primary aluminium in 2018," says President and CEO Svein Richard Brandtzæg.

"The US sanctions on Rusal have caused great uncertainty in the world's aluminium markets and will impact trade flows and availability of metal and raw materials throughout the aluminium value chain. The Brazilian authorities' embargo on Alunorte adds to the uncertainty in the aluminum industry and has led to 50 percent curtailment of Albras primary plant and 50 percent production at the Paragominas bauxite mine," Brandtzæg added.