Continued strong upstream operational performance, increased alumina and aluminium production compared to same quarter last year
Highest recycling results since 2023, driven by increasing product premiums and stable scrap prices
Continuing power sourcing to the Norwegian smelters, three new contracts
Successfully commissioned HalZero test facility
The first quarter demonstrated continued strong operational performance in the upstream segments. Alumina production at Alunorte improved compared to the same quarter last year due to improved yield and stable equipment availability. In Aluminium Metal the continued ramp up of the previously curtailed capacity at the Norwegian smelters more than offset the production curtailments in the Middle East, driving a 2.7 percent year on year production increase.
The recycling operations delivered strong results in the first quarter, primarily driven by the North American operations. Increasing value add product premiums compared to aluminium scrap and standard ingot premiums result in very strong margins for the U.S. recyclers.
"Strong operational performance across our upstream and recycling businesses, combined with favorable metal prices, drove a strong first quarter. It underlines the strength of our portfolio and our ability to convert operational excellence into financial results," says Eivind Kallevik, President and CEO of Hydro.
On March 30, a contractor at the Alunorte alumina refinery in Brazil suffered a medical emergency, received immediate on site assistance and was transported to the hospital, where he later passed away. The incident is under investigation by the authorities and Hydro has initiated its own internal review.
"I am deeply saddened by the passing of a contractor from our Alunorte plant. Our thoughts are with the family, loved ones and colleagues affected," says Kallevik.
Securing long-term access to renewable power at competitive pricing is a key priority for Hydro to strengthen long-term competitiveness as well as supporting its low-carbon position. Three new contracts amounting to 14 TWh have been secured year to date.
In March, an agreement was signed with Alpiq for 0.22 TWh per year from 2031 to 2038 in price area NO3.
In April, two contracts were signed with Statkraft, one adding 0.88 TWh per year for the period 2029 to 2038 in price area NO2 and one adding 0.44 TWh for the period 2031 to 2038 in price area NO3.
In addition to securing long-term contracts, Hydro is actively developing new renewable power projects as well as upgrading assets in its own captive renewable energy portfolio.
"Securing access to long-term renewable power at competitive pricing is critical for Hydro's ability to execute on our strategy of pioneering the green aluminium transition. These contracts, in combination with own project developments, support our long-term sourcing position," says Kallevik.
Hydro has successfully commissioned the HalZero test facility, marking an important milestone on the development of a new aluminium production technology. The facility is now operational, with structured testing activities, including key safety systems, operational control systems, equipment designs and core production processes being ramped up. The facility provides a controlled environment for systematic experimentation and testing, and has been built and brought online without any incidents.
Results and market development per business area
Adjusted EBITDA for ...
