2013-02-12 07:05:08 -
Hydro's underlying earnings before financial items and tax improved to NOK 138
million in the fourth quarter 2012 from an underlying loss of NOK 19 million in
the previous quarter. Lower energy costs in Bauxite & Alumina, lower variable
costs in Primary Metal and improved results for the Qatalum aluminum plant
contributed to underlying results.
* Underlying EBIT NOK 138 million
* Lower raw material costs
* Lower realized aluminium prices, higher alumina prices
* Higher power prices and production in Energy
* 2013 aluminium demand growth outlook 2-4 % in world outside China
* Proposed 2012 dividend NOK 0.75 per share
"On the back of continuing challenging markets, our focus remains on improving
performance across our value chain. The ambitious
USD 300 program is expected to
be completed at the end of 2013, strengthening Hydro's industry position. Our
improvement efforts will continue, including plans to optimize production and
performance in our bauxite and alumina operations in Brazil," Hydro's President
and CEO Svein Richard Brandtzæg said.
Bauxite & Alumina's underlying EBIT improved compared to the third quarter, due
to higher alumina prices and lower energy costs for Alunorte, together with
higher results from commercial operations.
Underlying EBIT for Primary Metal improved compared to the third quarter, mainly
due to better results in Qatalum. Lower realized aluminium prices negatively
affected underlying EBIT, partly offset by lower operating costs. Savings
targeted for Hydro's cost improvement program were achieved for the year.
Excluding inventory and currency effects, underlying results for Hydro's Metal
Markets operations declined, mainly due to lower volumes and margins together
with lower results from sourcing and trading operations.
Underlying EBIT for Rolled Products declined compared with the third quarter,
impacted by lower margins and seasonally higher maintenance costs.
Underlying EBIT for Energy increased in the quarter due to seasonally higher
production and prices.
Other and eliminations includes a significant negative charge related to
elimination of unrealized gains and losses on internal inventories.
Operating cash flow was NOK 2.8 billion for the quarter. Net cash used for
investment activities amounted to NOK 1.0 billion. Hydro's net cash position was
around NOK 1.7 billion at the end of the fourth quarter.
For the full year 2012, underlying EBIT declined substantially to NOK 1,158
million from NOK 5,982 million in 2011. Lower aluminium prices and alumina
prices had a significant effect on underlying results for the year. Ongoing
efforts to reduce costs and improve operations partly offset the negative market
effects.
On October 15 Hydro announced an agreement with Orkla ASA to combine their
respective extrusion profile, building systems and tubing businesses in a new
joint venture company to be named Sapa. Completion of the transaction is
expected to take place in the first half of 2013, following approval by the
relevant competition authorities. Following the agreement, operating results for
Hydro's Extruded Products are presented net of financial items and tax as Income
(loss) from discontinued operations and excluded from reported EBIT and
underlying EBIT.
Hydro's Board of Directors proposes to pay a dividend of NOK 0.75 per share for
2012, reflecting the company's strong commitment to provide a cash return to its
shareholders. The dividend reflects our operational performance for 2012 and a
strong financial position, also taking into consideration the uncertain market
outlook.
Earnings before financial items and tax amounted to NOK 669 million in the
fourth quarter, including net unrealized derivative gains and positive metal
effects of NOK 555 million and other items amounting to negative NOK 23 million.
In the previous quarter, Hydro incurred a reported loss before financial items
and tax of NOK 267 million, including net unrealized derivative losses and
negative metal effects of NOK 137 million and other items amounting to negative
NOK 112 million. Other items included impairments of non current assets of NOK
140 million and a gain of NOK 68 million relating to pensions.
Income from continuing operations amounted to NOK 364 million in the fourth
quarter including net foreign exchange loss of NOK 102 million. In the previous
quarter, Hydro incurred a net loss from continuing operations of NOK 64 million,
including net foreign exchange gains of NOK 282 million.
Loss from discontinued operations amounted to NOK 251 million in the quarter,
including rationalization and closure costs of NOK 174 million. In the third
quarter, loss from discontinued operations amounted to NOK 167 million,
including rationalization and closure costs of NOK 43 million and a loss on
disposal of Portalex amounting to NOK 144 million.
Key financial
information
% change
NOK million, Fourth Third % change Fourth prior
except per quarter quarter prior quarter year Year Year
share data 2012 2012 quarter 2011 quarter 2012 2011
-------------------------------------------------------------------------------
Revenue 15585 14722 6 % 17157 (9) % 64181 71500
Earnings
before
financial
items and tax
(EBIT) 669 (267) >100 % 46 >100 % 432 10068
Items excluded
from
underlying
EBIT (532) 249 >(100) % 1176 >(100) % 725 (4086)
-------------------------------------------------------------------------------
Underlying
EBIT 138 (19) >100 % 1223 (89) % 1158 5982
-------------------------------------------------------------------------------
Underlying
EBIT :
Bauxite &
Alumina (73) (386) 81 % 159 >(100) % (791) 887
Primary Metal 53 (10) >100 % 484 (89) % 314 2486
Metal Markets 69 7 >100 % (39) >100 % 208 441
Rolled
Products 71 214 (67) % 86 (17) % 640 673
Energy 322 220 47 % 441 (27) % 1459 1883
Other and
eliminations (305) (64) >(100) % 92 >(100) % (672) (389)
-------------------------------------------------------------------------------
Underlying
EBIT 138 (19) >100 % 1223 (89) % 1158 5982
-------------------------------------------------------------------------------
Underlying
EBITDA 1216 1114 9 % 2493 (51) % 5687 10497
-------------------------------------------------------------------------------
Underlying
income (loss)
from
continuing
operations 58 (37) >100 % 1035 (94) % 509 3947
Underlying
income (loss)
from
discontinued
operations (59) 17 >(100) % (159) 63 % (5) (1)
-------------------------------------------------------------------------------
Underlying net
income (loss) 0 (20) 100 % 876 (100) % 504 3947
Underlying
earnings per
share 0,00 0,00 - 0,42 (100) % 0,26 1,89
-------------------------------------------------------------------------------
Net income
(loss) 113 (231) >100 % (749) >100 % (1246) 6749
Earnings per
share 0,07 (0,14) >100 % (0,36) >100 % (0,61) 3,41
-------------------------------------------------------------------------------
Financial
data:
-------------------------------------------------------------------------------
Investments 1107 806 37 % 3907 (72) % 3382 47510
Adjusted net
interest-
bearing debt (8271) (13678) 40 % (19895) 58 % (8271) (19895)
-------------------------------------------------------------------------------
Key
Operational
information
-------------------------------------------------------------------------------
Alumina
production
(kmt) 1397 1441 (3) % 1490 (6) % 5792 5264
Primary
aluminium
production
(kmt) 485 484 - 539 (10) % 1985 1982
Realized
aluminium
price LME
(USD/mt) 1940 2022 (4) % 2439 (20) % 2080 2480
Realized
aluminium
price LME
(NOK/mt) 11069 11856 (7) % 13834 (20) % 12047 13884
Realized
NOK/USD
exchange rate 5,71 5,86 (3) % 5,67 1 % 5,79 5,60
Metal products
sales, total
Hydro (kmt) 731 794 (8) % 804 (9) % 3254 3303
Rolled
Products sales
volumes to
external
market (kmt) 226 228 (1) % 215 5 % 909 929
Power
production
(GWh) 2448 2157 13 % 2706 (10) % 10307 9582
-------------------------------------------------------------------------------
Investor contact
Contact Rikard Lindqvist
Cellular +47 41751199
E-mail Rikard.Lindqvist@hydro.com
Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland@hydro.com
*********
Certain statements included within this announcement contain forward-looking
information, including, without limitation, those relating to (a) forecasts,
projections and estimates, (b) statements of management's plans, objectives and
strategies for Hydro, such as planned expansions, investments or other projects,
(c) targeted production volumes and costs, capacities or rates, start-up costs,
cost reductions and profit objectives, (d) various expectations about future
developments in Hydro's markets, particularly prices, supply and demand and
competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk
management, as well as (i) statements preceded by "expected",
"scheduled",
"targeted", "planned", "proposed", "intended" or
similar statements.
Although we believe that the expectations reflected in such forward-looking
statements are reasonable, these forward-looking statements are based on a
number of assumptions and forecasts that, by their nature, involve risk and
uncertainty. Various factors could cause our actual results to differ
materially from those projected in a forward-looking statement or affect the
extent to which a particular projection is realized. Factors that could cause
these differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium business;
changes in availability and cost of energy and raw materials; global supply and
demand for aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value of
currencies and the value of commodity contracts; trends in Hydro's key markets
and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been
correct. Hydro disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q4 report:
hugin.info/106/R/1677211/546900.pdf
Q4 presentation:
hugin.info/106/R/1677211/546907.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
[HUG#1677211]
