Hydro Aluminium AS

Second quarter 2010: Results rise further on higher aluminium prices and solid sales

(July 27, 2010)
Hydro had underlying earnings before financial items and tax of NOK 1,110 million in the second quarter, rising from NOK 688 million in the first quarter. Higher realized aluminium prices, continued improvements in alumina operations and higher downstream sales lifted underlying results for the quarter.

HYDRO CEO: Svein Richard Brandtzæg
NOK 1,110 million in second quarter underlying EBIT
Solid demand in seasonally strong quarter
Upstream improves on higher aluminium prices and alumina performance
Downstream rises further with strong sales, firm margins and improved productivity
Energy falls on significantly lower power production
Qatalum ramp-up on schedule for full output in Q4, 48 percent of cells in operation end-Q2
Takeover of Vale’s aluminium business on track for Q4 closing
NOK 10 billion rights offering successfully completed
2010 outlook for growth in Hydro’s main markets unchanged at 12 percent
“The solid results are attributable to higher sales volumes, combined with firm margins and tight cost control in a seasonally strong quarter. This quarter confirms Hydro as a strong market performer,” Hydro’s President and Chief Executive Officer Svein Richard Brandtzæg said.

“Full output at Qatalum and closing of the takeover of Vale’s aluminium business are expected in the fourth quarter. Combined, these moves will strengthen Hydro in all parts of the value chain and make us an even more robust player in an industry poised for growth,” said Brandtzæg.

Hydro CEO new chair of IAI

(May 18, 2010)
Hydro’s President and CEO Svein Richard Brandtzæg has been elected chairperson of International Aluminium Institute (IAI), the global aluminium industry association.
“I am honored by this appointment, at a time when aluminium metal and materials are experiencing strong growth, and as the industry faces both short-term challenges and long-term opportunities,” Brandtzæg said.



”The world is looking to lower its greenhouse gas emissions. Through the outstanding performance of its products in use and its recyclability, we see aluminium as part of the solution to climate change. At the same time, the industry constantly strives to meet growing demand for aluminium, producing more with less.”

Brandtzæg is appointed IAI chair for a period of two years – and replaces Artem Volynets from UC Rusal.

“Artem has provided us with strong, positive leadership during the global market upheaval that all of us have faced over the past two years – and I am looking forward to building on the work underway here in the IAI,” said Brandtzæg.

Said IAI Secretary General Ron Knapp: “The IAI has 27 member companies worldwide, and with this strong membership base, the IAI is at the forefront of all aluminium-related issues.

”Acknowledging the challenges facing aluminium as both an extractive industry and a recycling industry, the IAI has committed to good environmental stewardship – and a focus on minimizing environmental impacts including waste reduction and climate change mitigation.

The IAI has also embarked on a rigorous life-cycle analysis program to develop as complete and understanding as possible of the environmental impacts and benefits of aluminium products.

Author:
Halvor Molland

Published: May 18, 2010

Hydro establishing regional sales office in Qatar

(April 12, 2010)
Hydro is setting up a regional office in Doha, Qatar, for marketing Hydro’s metal products in the Middle East, the Gulf states and Southern Africa. The office will be a part of Hydro’s business area Metal Markets and its Asian Regional Organization, based in Singapore.
The positive development of demand for aluminium metal products in Asia and the rest of the world continues and is creating interesting markets for Qatalum.


Qatalum will produce and market mainly value-added casthouse products extrusion ingots and foundry alloys, in the Middle East and the Gulf states, Asia, Southern Europe and in the U.S. The markets for these products are driven by the construction markets, general manufacturing output and automotive production.

The slightly positive development of demand for metal products such as extrusion ingot, sheet ingot, foundry alloys and wire rod in the second half of 2009 has continued into 2010. The demand for casthouse products in Asia is strong and growing, while the consumption in both Europe and North America remains below the levels experienced in 2007 and 2008 and there are no indications of a fast recovery to pre-crisis consumption levels.

Full Qatalum production next year
This year, Qatalum production is estimated to be more than 300,000 tonnes, and 2011 will be the first year of full production. The Qatalum casthouse is designed have a capacity to produce 625,000 tonnes, slightly more than the Qatalum production of primary aluminium of 585,000 tonnes. The balance will be made up of remelting of aluminium process scrap and other cold metal.

Hydro’s global market organization will bring all the products from Qatalum to the markets.

Hydro supplied the market with 2.4 million tonnes of casthouse products in 2009. Hydro is the market leader for aluminium casthouse products in Europe and has established strong market positions in Asia and the U.S. based on metal from its primary aluminium plants in Australia and dedicated remelting facilities centrally in the markets, as well as other sources.

Stronger market position
Qatalum will be an important source of quality products that will allow Hydro to increase its sales and market shares in Asia. In the U.S., Hydro will through Qatalum be able to offer metal products from primary aluminium, in addition to the products from our U.S. remelters. This gives Hydro a new and strengthened market position.

As a part of the global Hydro marketing network, customers of the Qatalum metal will have access to the extended services offered. These include technical and commercial services as well as scrap conversion in Hydro’s dedicated remelt facilities located strategically in key metal markets.

Hydro is also stepping up its activities in recycling of other qualities of aluminium scrap. Aluminium can be recycled requiring only 5 percent of the energy needed to originally produce primary aluminium.