Norwegian aluminum producer Norsk Hydro continues to focus on developing its low-carbon aluminum platform from the funds generated from the divestment of its rolling division. Meanwhile, its Metal and Extrusions division saw robust growth in profits during Q1 2021.
The company plans to close the rolling division transaction with KPS Partners by Q2 or Q3 2021. The company noted that its Reduxa and Circal low-carbon products have seen growth in demand over the quarter, with Q1 Reduxa sales already at the 60pc mark compared with full-year 2020 sales.
Increasing aluminum demand as economies continue to recover from the COVID-19 pandemic is expected to buoy aluminum prices worldwide, driven largely by the automotive and construction sector.
During Q1 2021, Hydro produced 539,000mt of primary aluminum across its smelters, up by 2pc from 528,000mt in Q1 2020. For the full year, the company aims to produce close to 2.1mn mt of the metal. Alumina production also increased by 1pc to 1.54mn mt during the same period.
Financially, Hydro Extrusions turned over an adjusted EBITDA of NOK1.7bn ($210mn) in the first quarter, up by 40pc from NOK1.2bn. Its extrusion sales increased 11pc to 338,000mt in Q1 2021 against 305,000mt in the same period last year. In the same timeframe under comparison, its Aluminium Metal division posted an adjusted EBITDA of NOK5.2bn, up by 49pc from NOK3.8bn.
For the first quarter, Hydro posted a net income of NOK1.8bn from its overall operations, compared to a net loss of NOK1.7bn in Q1 2020.