Hydro's adjusted EBITDA for the second quarter of 2024 was NOK 5,839 million, positively influenced by increasing revenue drivers in the quarter. The second quarter adjusted EBITDA was down from NOK 7,098 million for the same quarter last year, negatively impacted by lower Extrusions volumes, recycling margins and Energy spot sales, and higher fixed costs. This was partly offset by higher alumina prices and lower raw material costs resulting in an adjusted RoaCE of 4.4 percent over the last twelve months and free cash flow of NOK 2.8 billion.
- Revenue drivers continue to rise, supporting solid upstream results
- Weak demand and low recycling margins impacting downstream results, mitigating measures in place
- Hydro Rein joint venture established, supporting industrial decarbonization and long-term value creation
- Strong demand for Hydro CIRCAL, scaling up recycling to meet increased demand
- Shaping the greener aluminium market in partnership with Porsche
"The positive development in our key revenue drivers from the first quarter continued into the second quarter, supporting solid results in our upstream businesses. We are mitigating the challenges of a weak downstream market by executing cost-saving measures and maintaining extrusion margins," says Eivind Kallevik, President & CEO of Hydro.
On July 9, a contractor passed away while performing maintenance work at Hydro's joint venture Albras in Brazil.
"I am deeply saddened by this tragic incident which underlines the critical role safety has in everything we do. My deepest condolences go out to the family and the affected colleagues," says Kallevik.
Economic growth forecasts stabilized at relatively low levels during the second quarter, while the economic uncertainty continued to decrease with both headline and core inflation trending downwards, and external sources estimating real GDP growth of around 2.7 percent in 2024. Global primary aluminium demand was up 2 percent year-on-year during the second quarter, driven by a 3 percent increase in China, supporting overall growth in global primary demand of 3 percent year-on-year for 2024. Key uncertainties going forward are inflation stickiness, policy support, Chinese economic growth, the conflicts in Ukraine and the Middle East, and the geopolitical situation.
Positive revenue drivers continued into the second quarter, supporting solid results in Bauxite & Alumina and Aluminium Metal. The Platts Alumina Index (PAX) started the quarter at USD 367 per tonne, gradually increasing to USD 505 per tonne at the end of the quarter, driven by alumina production curtailments and disruptions in Australia and India, bringing the World ex-China market into balance. The three-month aluminium price ended the quarter at USD 2,524 per tonne.
"We are pleased to see solid results in Bauxite & Alumina as well as Aluminium Metal. Positive revenue drivers, combined with ongoing improvement initiatives, including the ongoing fuel switch at Hydro Alunorte, are expected to further strengthen value creation from upstream activities going forward," says Kallevik.
Downstream, demand in the residential building and construction segments in Europe and North America remains weak, but is expected to improve with lower interest rates and a positive industrial outlook. Low activity in these markets continues to challenge aluminium scrap availability and pressures recycling margins, with several recyclers running on reduced capacity, impacting both Hydro Extrusions and Metal Markets. The automotive extrusion demand has been challenged by lower electrical vehicle sales growth, and weak trailer build rates in the transportation segment adversely affected Hydro Extrusions during the second quarter. CRU revised down their extrusion demand forecasts for the second half of 2024, expecting a slower recovery.
Hydro Extrusions has responded with mitigating measures to handle challenging markets. Current production flexibility and adaptation abilities are utilized to maneuver weak demand, while cost cutting programs and manning reductions are used as means to uphold margins. Managing short-term volatility enables Extrusions to continue positioning for long-term growth with the customers, and two new OEM contracts were added to the portfolio during the second quarter, accumulating contracts worth EUR 3.1-3.3 billion since the beginning of 2023. Hydro Extrusions is positioned to deliver on the 2025 EBITDA target of NOK 8 billion when markets recover, though recent extrusion demand forecasts indicate a delayed realization.
Recycling margins pressured by weak markets underscore the need to diversify the portfolio, and strengthen margins and scrap sourcing. During the second quarter, Hydro decided to invest USD 85 million in a new casting line at the recycler in Henderson, Kentucky, to supply the U.S. automotive market with high-quality recycled automotive components. The project introduces HyForge technology to the U.S., serving the automotive market's need for high-quality forge stock, and broadening Hydro's product portfolio. Further, the Alusort joint venture completed the HySort installation in the quarter to enable the U.S. plants to sort and use more post-consumer scrap.
Demand for Hydro's low-carbon and recycled aluminium, Hydro CIRCAL, has remained strong despite weak markets. Recyclers, Luce in France and Atessa in Italy, are upgrading to meet rising European demand, and the bicycle company, Brompton, introduced wheel rims made from 100 percent post-consumer aluminium scrap during the quarter. Beyond Europe, greener products are gaining traction in the U.S., and the first sale of Hydro CIRCAL was conducted during the second quarter. These efforts are estimated to strengthen Hydro's recycling margins and resilience, and align with the 2030 recycling targets.
"Demand growth for low-carbon products remains strong with Hydro CIRCAL sales well above target for 2024. This gives confidence to continue to push forward on strengthening our portfolio to capture long-term positions in the rapidly growing market for low-carbon products," says Kallevik.
Delivering low-carbon products creates value for Hydro's customers at premium pricing. Leveraging the integrated value chain with traceability from mine to component, Hydro is attracting strategic partnerships with industry leaders like the German sports car manufacturer Porsche AG. The agreement signed in Stuttgart on July 9, opens for Hydro to deliver best-in-class, low-carbon aluminium for Porsche's vehicle production in the years to come, and the scope of the agreement includes both Hydro REDUXA and Hydro CIRCAL. Hydro is well-positioned to capitalize on greener premiums, with the potential for NOK 2 billion in earnings uplift by 2030.
"The agreement with Porsche is first of its kind in the aluminium industry and represents a totally new business model proving the underlying value of Hydro's efforts throughout our value chain to pioneer the green aluminium transition," says Kallevik.
Securing access to renewable power is crucial for growth in low-carbon aluminium. Hydro and Macquarie Asset Management launched their renewable energy partnership on June 24, establishing Hydro Rein as a joint venture where Hydro owns 50.1 percent and Macquarie 49.9 percent of the company. With the capital provided by Macquarie, Hydro Rein is expected to be fully funded for its current projects under construction and development cost for projects in the pipeline in the coming years, with an ambition that no new equity will be called on from the owners beyond committed capital.
"We are excited to join forces with Macquarie Asset Management to accelerate the next chapter of Hydro Reins growth journey. With Hydro and Macquarie Asset Management's complimentary capabilities on the ownership side, Hydro Rein is well equipped to continue pursuing profitable growth – supporting industrial decarbonization through growing in the Nordics, selected European markets as well as in Brazil," says Kallevik.
Results and market development per business area
Adjusted EBITDA for Bauxite & Alumina increased compared to the second quarter of last year, from NOK 817 million to NOK 1,616 million, mainly driven by higher alumina sales prices, lower cost of raw materials, and increased sales volume, partly offset by increased alumina sourcing costs and increased other fixed and variable costs. PAX started the quarter at USD 367 per tonne, increasing gradually to USD 505 per mt at the end of the quarter.
Adjusted EBITDA for Energy decreased in the second quarter 2024, from NOK 854 million to NOK 611 million, compared to the same period last year. Lower production, prices and gain on price area differences were partly offset by the expiry of a 12-month internal fixed price purchase contract from Aluminium Metal with a significant loss in the same period last year. Average Nordic power prices in the second quarter 2024 ended below the prices from the previous quarter and the same quarter last year. Price area differences between the south and the north of the Nordic market region increased slightly compared to the previous quarter, but were significantly lower than the same quarter last year. The increase compared to the first quarter 2024 was primarily a result of lower prices in the north due to wind power production, hydrology and decreased demand.
Adjusted EBITDA for Aluminium Metal decreased in the second quarter 2024, compared to the second quarter of 2023, from NOK 3,215 million to NOK 2,520 million, mainly due to reduced contribution from power sales, increased alumina and energy cost, and inflation on fixed cost, partly offset by reduced carbon cost. Global primary aluminium consumption was up 2 percent compared to the second quarter of 2023, driven by a 3 percent increase in China. The three-month aluminium price increased throughout the second quarter of 2024, starting the quarter at USD 2,337 per tonne and ending at USD 2,524 per tonne.
Adjusted EBITDA for Metal Markets decreased in the second quarter 2024, compared to the same period last year, from NOK 334 million to NOK 309 million, due to lower results from recyclers and negative currency effects, largely offset by strong results from sourcing and trading activities. Lower results from recyclers are due to reduced sales prices in a weakening market and additional margin pressure in a tightening scrap market, while Alumetal contributed positively after the acquisition in third quarter 2023.
Adjusted EBITDA for Extrusions decreased in the second quarter 2024, from NOK 2,013 million to NOK 1,377 million, compared to the same quarter last year, mainly driven by lower extrusion sales volumes and decreased margins from recyclers. General inflation pressured fixed and variable costs, partly offset by cost measures. European extrusion demand is estimated to have decreased 14 percent in the second quarter of 2024, compared to the same quarter last year, but increasing 5 percent compared to the first quarter partly driven by seasonality. Automotive extrusion demand has been challenged by lower growth in sales of electric vehicles. Demand for residential building and construction, and industrial segments have started to stabilize at relatively weak levels. Extrusion demand has been relatively better in Southern Europe, while demand in Germany continues to be weak. North American extrusion demand is estimated to have decreased 5 percent during the second quarter of 2024, compared to the same quarter last year, but increasing 1 percent compared to the first quarter. The transport segment has been particularly weak, driven by lower trailer build rates.
Other key financials
Compared to the first quarter 2024, Hydro's adjusted EBITDA increased from NOK 5,411 million to NOK 5,839 million in the second quarter 2024. Higher realized aluminium and alumina prices combined with higher alumina sales volume were partly offset by increased energy and fixed costs.
Net income (loss) amounted to NOK 1,421 million in the second quarter of 2024. Net income (loss) included a NOK 571 million unrealized derivative loss on LME related contracts, a net foreign exchange gain of NOK 151 million, and a NOK 60 million gain from unrealized derivative power and raw material contracts. The result also includes the gain on Hydro's reduced ownership share in Hydro Rein with NOK 321 million, reversal of a provision with NOK 164 million, a compensation related to the divested Rolling business with NOK 137 million, and NOK 56 million in rationalization charges and closure costs.
Hydro's net debt increased from NOK 13.9 billion to NOK 16.2 billion during the second quarter of 2024. The net debt increase was mainly driven by a NOK 5.0 billion dividend to shareholders and investments, partly offset by EBITDA contribution.
Adjusted net debt increased from NOK 22.5 billion to NOK 26.1 billion, largely due to the increase in net debt of NOK 2.3 billion, coupled with increased collateral of NOK 0.5 billion and a NOK 0.6 billion increase in other financial liabilities.
Reported earnings before financial items and tax (EBIT), and net income include effects that are disclosed in the quarterly report. Adjustments to EBITDA, EBIT and net income (loss) are defined and described as part of the alternative performance measures (APM) section in the quarterly report.
Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com
Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
The information was submitted for publication from Hydro Investor Relations and the contact persons set out above. Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty.
Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Except where required by law, Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
Attachments
- NHY Presentation Q2 2024
- NHY Report Q2 2024
2024年第二季度Hydro的调整后的EBITDA为NOk 5839百万,因季度收入驱动程序增加而受到积极影响。第二季度调整后的EBITDA从去年同期的NOk 7098百万下降,受到Extrusions产量、回收利润和能源现货销售下降以及固定成本增加的消极影响。这在一定程度上被较高的氧化铝价格和较低的原材料成本所抵消,导致过去12个月的调整后RoaCE为4.4%,自由现金流为NOk 28亿。
- 营收驱动程序继续上升,支持上游业务的稳定业绩
- 疲弱的需求和低回收利润影响下游业绩,采取了减轻措施
- Hydro Rein成立的合资企业,支持产业去碳化和长期价值创造
- Hydro CIRCAL需求旺盛,加大回收以满足增加的需求
- 与保时捷合作打造更环保的铝材市场
Hydro的总裁兼首席执行官Eivind Kallevik表示:“我们主要的收入驱动因素在第一季度的积极发展在第二季度持续,支持上游业务的稳定表现。我们通过执行节约成本措施和维持挤压利润来缓解弱势的下游市场所带来的挑战。”
7月9日,在巴西Hydro的合资企业Albras进行维护工作时,一名承包商去世。
Hydro的总裁兼首席执行官Eivind Kallevik表示:“这起悲剧性事件使我们深感悲痛,突显了安全在我们所做的一切工作中的关键作用。我向家属和受影响的同事们表示最深切的慰问。”
在第二季度,经济增长预测稳定在相对较低的水平,而经济不确定性仍在减少,主要通胀和核心通胀都呈下降趋势,外部来源估计2024年实际GDP增长约为2.7%。在第二季度,全球原铝初级需求同比增长了2%,其中中国增长3%,支持2024年全球初级需求总体同比增长3%。未来的关键不确定因素是通胀的粘滞性、政策支持、中国的经济增长、乌克兰和中东的冲突以及地缘政治局势。
积极的营收驱动因素在第二季度持续增加,支持铝土矿及氧化铝和铝金属的稳定业绩。Platts氧化铝指数(PAX)在第二季度开始时为每吨367美元,逐渐增加到每吨505美元,受氧化铝生产削减和澳大利亚和印度的干扰的推动,将世界除中国以外的市场带入平衡。三个月铝价在季末达到2,524美元。
Hydro的总裁兼首席执行官Eivind Kallevik表示:“我们很高兴看到在铝土矿及氧化铝和铝金属业务中取得了稳定的结果。积极的收入驱动因素以及持续的改进举措,包括Hydro Alunorte的燃料转换,预计将进一步增强上游业务的价值创造。”
在欧洲和北美的住宅建筑和建筑领域,需求仍然疲弱,但有望随着降低的利率和积极的工业前景而改善。这些市场的低活动水平继续挑战铝废料的供应和压力回收利润,多家回收公司在减少产能运行,影响了Hydro Extrusions和金属市场。在第二季度,汽车挤出需求受到电动汽车销售增长的挑战,交通运输领域的薄弱拖车制造率对Hydro Extrusions产生了不利影响,CRU将其挤出需求预测调低到2024年下半年,预计恢复较慢。
Hydro Extrusions已采取减轻措施来应对具有挑战性的市场。当前的生产灵活性和适应能力被用于应对需求疲软,同时采用削减成本计划和人员减少来保持利润。管理短期波动可以使挤出部门继续与客户定位长期增长,第二季度新增了两个OEm合同,自2023年初以来累计合同价值为31-33亿欧元。当市场恢复时,Hydro Extrusions定位在实现NOk 80亿的2025年EBITDA目标,但最近的挤出需求预测表明实现目标将会延迟。
由于市场疲软,回收利润受到压力,表明有必要使产品组合多样化,增强利润和废料采购。在第二季度,Hydro决定在位于肯塔基州亨德森的再生厂投资8500万美元,以为美国汽车市场提供高品质的再生汽车零部件。该项目将HyForge技术引入美国,满足汽车市场对高品质锻压材料的需求,拓宽了Hydro的产品组合。此外,Alusort合资企业在第二季度完成了HySort的安装,以使美国工厂更多地对消费后废料进行排序和使用。
尽管市场疲软,对于Hydro的低碳和回收铝--Hydro CIRCAL的需求仍然强劲。法国的Luce和意大利的Atessa回收公司正在升级以满足不断增长的欧洲需求,自行车公司Brompton在本季度推出了由100%的消费后铝废料制成的轮辋。在欧洲以外,更环保的产品在美国得到了广泛认可,Hydro CIRCAL在第二季度进行了首次销售。这些努力有望加强Hydro的回收利润和韧性,并符合2030年回收目标。
Kallevik表示:“对低碳产品的需求增长仍然强劲,Hydro CIRCAL销售额高于2024年的目标。这让人对继续推动加强产品组合以占据低碳产品快速增长市场的长期地位充满信心。”
生产低碳产品为Hydro的客户创造了溢价定价的价值。利用从矿山到零部件的可追溯的一体化价值链,Hydro正在吸引与德国跑车制造商保时捷AG等行业领导者的战略合作。7月9日在斯图加特签署的协议为Hydro在未来几年向保时捷的汽车生产提供最佳低碳铝材打开了大门,协议范围包括Hydro REDUXA和Hydro CIRCAL。Hydro有很好的位置优势,可以利用更环保的溢价,预计到2030年可以创造NOk 20亿的业绩提升。
Kallevik表示:“与保时捷的协议在铝行业中是首创的,代表了一种全新的商业模式,证明了Hydro在我们的价值链中的努力是推动绿色铝行业转型的价值所在。”
获得可再生能源的准入对于低碳铝的增长至关重要。Hydro和麦格理资产管理公司于6月24日启动了他们的可再生能源合作伙伴关系,成立了Hydro Rein作为合资公司,Hydro拥有50.1%的股份,麦格理拥有49.9%的股份。通过麦格理提供的资本,预计Hydro Rein将充分资助目前正在建设的项目和未来几年计划中的项目开发成本,其零股本承诺超过了业主所承诺资本。
我们很高兴能够与麦格理资产管理携手加速Hydro Reins成长旅程的下一章。Hydro和麦格理资产管理在所有权方面的互补能力使Hydro Rein有能力继续追求盈利增长,支持工业脱碳,扩大在挪威、欧洲部分市场以及巴西的业务。"Kallevik表示。
按业务领域划分的结果和市场发展
与去年第二季度相比,铝土矿和铝氧化物的调整后EBITDA从8,1700万挪威克朗增加到16,1600万挪威克朗,主要由于较高的氧化铝销售价格、较低的原材料成本、增加的销售量推动,部分被氧化铝采购成本和其他固定和可变成本的上升所抵消。斯帕恩(PAX)的价格从第二季度开始为每吨367美元,逐渐上涨到本季度末的每吨505美元。
能源的调整后EBITDA在2024年第二季度同比下降,从8,5400万挪威克朗降至6,1100万挪威克朗。较低的产量、价格和价格地区差异的收益部分抵消了一年内与铝金属的内部固定价格购买合同到期的损失。第二季度2024年北欧电力平均价格低于前一季度和去年同期的价格。南北部市场地区价格差异与上一季度略有增加,但比去年同期显著低。与2024年第一季度相比,增长主要是由于北部价格较低,这是由于风力生产、水文和需求下降导致的。
2024年第二季度,铝金属加工的调整后EBITDA与2023年第二季度相比下降,从3,2150万挪威克朗降至2,5200万挪威克朗,主要由于销售电力贡献减少、氧化铝和能源成本上升、固定成本通货膨胀上升,部分抵消了碳成本下降。全球原铝消费量同比增加2%,其中中国增长3%。三个月期铝的价格在2024年第二季度逐步上涨,从每吨2,337美元开始,到每吨2,524美元结束。
金属市场的调整后EBITDA在2024年第二季度同比下降,从3,3400万挪威克朗降至3,0900万挪威克朗,由于废品回收商营收下降和负面货币影响,大部分弥补了采购和交易活动的强劲业绩。废品回收商营收减少是由于市场疲软导致销售价格下降,废品市场逐渐紧缩后的额外利润压力,而Alumetal则在2023年第三季度收购后作出积极贡献。
挤压调整后EBITDA在2024年第二季度同比下降,从2,0130万挪威克朗降至1,3770万挪威克朗,主要由于挤压销售量下降和废品回收商利润下降。一般通货膨胀对固定和可变成本施加压力,部分抵消了成本措施。根据季节性预测,2024年第二季度欧洲挤压需求估计下降14%,与去年同期相比,但比第一季度增长5%。汽车挤压需求受到电动汽车销量增长放缓的挑战。住宅建筑和建筑以及工业行业的需求已开始在相对弱的水平上稳定。南欧的挤压需求相对较好,而德国的需求仍然疲软。根据预估,2024年第二季度,北美挤压需求同比下降5%,而与去年同期相比,第一季度增长了1%。运输领域表现特别疲软,主要是由于拖车建设率下降。
其他关键财务数据
与2024年第一季度相比,Hydro的调整后EBITDA在2024年第二季度从5,4110万挪威克朗增加到5,8390万挪威克朗。实现的铝和氧化铝价格上涨以及氧化铝销售量的增加,部分抵消了能源和固定成本上涨。
净利润总额为1.421亿挪威克朗。净利润总额包括5,7100万挪威克朗的未实现衍生产品亏损、1,5100万挪威克朗的外汇收益和6000万挪威克朗的未实现衍生产品动力和原材料合同收益。该结果还包括Hydro在Hydro Rein中减少所有权股份的收益,为3,2100万挪威克朗,在去年同期产生了重大损失的Aluminium Metal的内部固定价格采购合同到期等。
2024年第二季度,Hydro的净债务从139亿挪威克朗增加到162亿挪威克朗。净债务增加主要是由50亿挪威克朗的股息分配和投资驱动,部分抵消了EBITDA的贡献。
调整后的净债务从225亿挪威克朗增至261亿挪威克朗,主要由于净债务增加了23亿挪威克朗,加上抵押品增加了5亿挪威克朗和其他金融负债增加了6亿挪威克朗。
报告的财务项和税前收益(EBIT),以及净收益包括披露于季度报告中的影响。EBITDA、EBIT和净收益(亏损)的调整定义和描述在季度报告中作为替代绩效衡量指标(APM)部分的一部分。
投资者联系人:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com
媒体联系人:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
本新闻稿中包含的某些声明包含前瞻性信息,包括但不限于以下信息: (a) 预测、投射和估计, (b) Hydro管理层关于计划、目标和战略的声明,例如计划的扩张、投资、出售、削减或其他项目, (c) 有关目标生产量和成本、产能或速率、启动成本、成本降低和利润目标的各种声明, (d) 关于Hydro市场未来发展的各种期望,特别是价格、供应和需求以及竞争方面的期望, (e) 运营结果, (f) 边际利润, (g) 增长率,(h) 风险管理,以及 (i) “预期”、“计划“、“目标”、“拟议”、“打算”或类似的限定性陈述。虽然我们认为这些前瞻性陈述所反映的期望是合理的,但这些前瞻性陈述是基于一些假设和预测,这些假设和预测本质上涉及风险和不确定性。
各种因素可能导致我们的实际结果与前瞻性声明中预测的结果有所不同或影响特定预测的实现程度。可能导致这些差异的因素包括但不限于:我们继续重新定位和重组我们的上游和下游业务的能力;能源和原材料的可用性和成本的变化;全球铝及铝制品的供需情况;世界经济增长,包括通货膨胀率和工业生产率;货币相对价值的变化和商品合同价值;Hydro关键市场和竞争的趋势;以及立法、监管和政治因素。不能保证这样的期望会被证明是正确的。除法律要求外,Hydro否认对任何前瞻性陈述进行更新或修订,无论是基于新信息、未来事件还是其他原因。此信息被视为根据欧盟市场滥用规例的内部信息,并受挪威证券交易法第5-12条所规定的披露要求限制。
附件
- NHY 2024年第二季度报告
- NHY 2024年第二季度PPT