Hydro Reports Underlying Earnings of NOK 544 million In Q2 2014 Hydros underlying earnings before financial items and tax declined to NOK 544 million in the second quarter, down from NOK 772 million in the first quarter of 2014. Lower power production and lower power prices had a negative impact on underlying results for the quarter, partly offset by improved results from Primary Metal. Underlying EBIT for Bauxite & Alumina remained weak but improved somewhat compared to first quarter of 2014 influenced by higher realized alumina prices and increased alumina sales volumes. Positive developments were mostly offset by negative currency developments and higher energy costs due to ICMS taxes for the full quarter. Underlying EBIT for Primary Metal improved in the second quarter influenced by higher product premiums partly offset by lower sales volumes and somewhat lower realized aluminium prices. Global demand for primary aluminium (excluding China) increased by 4 percent compared with both the first quarter in 2014 and the second quarter in 2013. Annualized consumption increased to 27.5 million mt in the second quarter. Corresponding production also increased, amounting to 26.0 million mt. Closures and curtailments announced in the previous quarter are expected to partly offset planned start-ups, resulting in a continued expectation of demand exceeding production in 2014. Aluminium consumption was seasonally higher in China compared to the first quarter, amounting to 27.6 million mt on an annualized basis. Corresponding production also increased, with the ramp up of new capacity continuing in the Northwest regions, although at a gradually slower pace. This has been somewhat offset by further curtailments in the Eastern provinces. SHFE prices increased 3.5 percent during the second quarter compared to the previous quarter. Powered by Commodity Insights
Posted on: Mon, 20 Oct 2014 07:40:10 +0000
Trending Topics
Recently Viewed Topics
© 2015