The following is a summary of the Norsk Hydro ASA (NHYDY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Norsk Hydro reported an EBITDA of NOK 5.4 billion for Q1 2024.
Revenue decreased by 2% to NOK 47.5 million from Q4.
Net income was positive at NOK 430 million, down from NOK 1.1 billion in the same quarter last year.
Adjusted net income was NOK 1.5 billion and adjusted earnings per share stood at NOK 0.9.
Hydro Extrusion sales volumes declined by 11% in Q1 year-over-year.
Adjusted EBITDA for Bauxite & Alumina increased from NOK 437 million Q1 '23 to NOK 804 million in Q1 '24.
Adjusted EBITDA for Energy for Q1 increased to NOK 1.15 million compared to NOK 680 million Q1 '23.
Net debt increased by NOK 5.7 billion since Q4, with positive contribution of NOK 5.4 billion in adjusted EBITDA.
The company experienced financial pressure due to weak aluminum market and squeezed recycling margins.
Business Progress:
The company has increased its capacity to use more post-consumer scrap and secured more scrap.
Commercial operations have been started at solar parks in Brazil in a stride towards decarbonization.
Agreed on a long-term model for the CO2 compensation scheme with the Norwegian government.
Recovery is expected in the Building & Construction market from the second half of 2024.
The company has signed new long-term offtake contracts with automotive customers and is processing more contracts worth between EUR 0.9 billion to EUR 1 billion.
It aims to achieve NOK 2 billion by 2030 through transforming its Hydro REDUXA portfolio and increasing its Hydro CIRCAL offerings.
A strategic partnership with NKT was initiated to develop low-carbon aluminum power cable value chain.
Demand for the company's low-carbon and recycled aluminum, REDUXA, and CIRCAL is increasing in the market.
CEO, Hilde Merete Aasheim, announced her leaving and replacement by Eivind Kallevik on May 13.
The company is committed to delivering on its growth ambitions for recycling and extrusions, advancing renewable energy portfolio and decarbonization, and technology roadmaps.
More details: Norsk Hydro ASA Sponsored ADR IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.