Q2 2026 Norsk Hydro ASA Earnings Call Transcript
Key Points
- Norsk Hydro ASA (NHYDY) reported a strong operational performance with an adjusted EBITDA of NOK8.9 billion for the second quarter.
- The company achieved an adjusted RoaCE of 10.9%, surpassing its target of 10% over the cycle.
- Recycling results improved significantly, with an adjusted EBITDA of NOK0.9 billion.
- Norsk Hydro ASA (NHYDY) secured a long-term agreement with Eviny for 5 terawatt hours of renewable power, strengthening its competitive advantage in renewable energy.
- The company reached an agreement to restart production at Slovalco, demonstrating the potential for industrial capacity to return to Europe under favorable conditions.
- The ongoing geopolitical situation in the Middle East continues to impact Norsk Hydro ASA (NHYDY)'s operations, particularly affecting the Qatalum plant.
- The alumina market remains oversupplied, with a global balance of 1.6 million tonnes long in 2026, which could pressure prices.
- Energy production was lower due to dry hydrology in Norway, impacting the company's energy segment results.
- The Metal Markets segment experienced a significant decline in adjusted EBITDA, primarily due to negative results from sourcing and trading activities.
- Currency fluctuations, particularly the stronger Norwegian krone against the US dollar, negatively impacted financial results.
Good morning, and welcome to Hydro's second quarter 2026 Presentation and Q&A. We will shortly begin with a presentation by President and CEO, Eivind Kallevik, followed by a financial update from CFO, Trond Olaf Christophersen. We will then finish off with a Q&A session. (Operator Instructions)
And with that, I turn the word over to you, Eivind.
Thank you, Erik, and good morning from me as well. I am pleased to present a strong set of results for the second quarter, supported by excellent operational performance across the company.
Overall, this is a solid quarter, but at the same time, the ongoing situation in the Middle East continues to impact the totality and effects to border picture. As always, we begin with what matters most, safety. Safe operations and a safe working environment are the foundation for everything else that we report today. Because without them, none of our other results would matter.
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