Norsk Hydro Q3 beats forecast, outlook more uncertain
Reuters
Published Oct 25, 2022 01:24AM ET
Updated Oct 25, 2022 02:11AM ET
OSLO (Reuters) -Norwegian aluminium producer Norsk Hydro (OTC:NHYDY) posted third-quarter profits well above expectations on Tuesday as high metal prices continued to boost returns, but said its outlook was more uncertain amid high inflation and weaker global growth.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 9.72 billion Norwegian crowns ($926.02 million) in July-September from 7.22 billion a year earlier, beating an average analyst forecast of 7.84 billion.
The firm, which ended metals production at its Slovaco plant in Slovakia in September due to high power costs, last month also cut output at two of its plants in Norway, citing market uncertainty and a decline in demand.
"The war in Ukraine, high energy prices, and concerns around inflation and increasing interest rates continue to add uncertainty and impact growth forecasts for 2022 and 2023," Hydro said in a statement.
"In the extrusion market, the demand for the industrial, and the building and construction segments have weakened into the third quarter, while growth in automotive demand is improving slightly as supply chain issues are easing," it said.
While global production of the light-weight metal, used in packaging, transport, construction and electronics, is expected to lag consumption this year, the worldwide supply of aluminium looks set to slightly outstrip demand in 2023, Hydro said.
Aluminium prices on the London Metal Exchange rose sharply in early 2022, hitting record highs above $4,000 a tonne, but have since fallen to trade at $2,178 on Tuesday.
The company's share price rose last year as the global economy recovered from the pandemic, but has since declined amid recession fears and is down 10.2% year-to-date, lagging a 5.6% fall in the Oslo benchmark index.
($1 = 10.4965 Norwegian crowns)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.