Norsk Hydro Q2 Profit Edges Up, Revenues Down; Ups Aluminium Demand Growth View

(RTTNews) - Norwegian aluminium producer Norsk Hydro (NHY, NHYDY.PK, NHYDY.PK) reported Thursday that its second-quarter net income edged up 1 percent to 2.08 billion Norwegian kroner from last year's 2.06 billion kroner. Earnings per share were 0.95 krone, higher than 0.94 krone last year.

The latest results included a net foreign exchange gain of 904 million kroner mainly reflecting the strengthening BRL versus US dollars affecting US dollar liabilities in Brazil.

Underlying net income, which excluded certain items, was 1.13 billion kroner or 0.52 krone per share, compared to 1.83 billion kroner or 0.83 krone per share in the prior year.

Underlying EBITDA declined 26 percent year-over-year to 2.86 billion kroner.

Revenue for the quarter dropped 9 percent to 20.39 billion kroner from 22.44 billion kroner in the previous year.

Bauxite production increased 17 percent to 2.609 million tones, and Alumina production grew 8 percent to 1.554 million tones.

Realized aluminium price LME declined 14 percent to $1,546 per tone.

Looking ahead, President and CEO Svein Richard Brandtzæg said, "We have lifted annual global aluminium demand growth forecast to 4-5 percent for 2016, up from previous forecast 3-4 percent. Higher-than-expected activity in China means that we now see primary aluminium demand in China alone to grow by 5-7 percent in 2016. Globally, we expect a largely balanced aluminium market for the full year."