© Stocksak. FILEPHOTO: This illustration was taken on May 3, 2022 and shows the Norsk Hydro logo. REUTERS/Dado Ruvic/Illustration
OSLO (Stocksak). – Norwegian aluminium producer Norsk Hydro, (OTC:), on Tuesday reported third-quarter profits that were well above expectations. However, the company said that its outlook was more uncertain due to high energy prices and inflation affecting growth prospects.
The adjusted earnings before interest, taxes and depreciation (EBITDA), which rose to 9.72 billion Norwegian Crowns ($926.02million) in July-September compared with 7.22 billion a previous year, beat an average analyst forecast for 7.84 billion.
The firm, who in September stopped metal production at Slovaco’s Slovakian Slovaco plant due to high power bills, also cut output at two Norwegian plants last Month, citing market uncertainties and a drop in demand.
Hydro stated in a statement that “The war in Ukraine and high energy prices, as well as concerns about inflation and rising interest rates, continue to add uncertainty to growth forecasts for 2022-2023,” Hydro said.
It stated that the extrusion market saw a decline in demand for the building and construction segments and a decrease in demand for industrial and building materials. However, there was a slight improvement in growth in automotive demand as supply chain problems are decreasing.
Aluminium prices on London Metal Exchange rose sharply in the early 2022, reaching record highs of $4,000 per tonne. However, they have since fallen to $2,178 on Tuesday.
($1 = 10.4965 Norwegian crowns)