Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2017
July 14 2017 - 12:01AM
Underlying EBIT for Sapa in the second quarter
increased compared to the previous quarter, in line with general
seasonality in the industry but also related to improved
performance.
Sapa improved its underlying EBIT in the second
quarter of 2017 compared to the same period last year, ending the
quarter at NOK 914 million. The quarterly result is the best in
Sapa's history. The increase was driven by a higher share of
value-add business and internal improvements for all business
areas.
Underlying EBIT for the first half of 2017
improved compared to the same period in 2016, influenced by the
same factors as discussed above.
Net interest-bearing debt increased to NOK 3.1
billion at the end of the quarter, mainly reflecting dividend
payments of NOK 3 billion to the owners.
Key Figures - Sapa (100%) |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
NOK million, except sales volumes |
|
|
|
|
|
|
Volume (kmt) |
349 |
366 |
340 |
310 |
355 |
359 |
Total operating revenues |
13 905 |
14 071 |
13 140 |
12 210 |
14 323 |
15 309 |
Underlying EBITDA |
901 |
1 132 |
812 |
653 |
1 100 |
1 252 |
Underlying EBIT |
571 |
804 |
487 |
335 |
778 |
914 |
Underlying net income |
365 |
540 |
315 |
334 |
562 |
658 |
Reported EBIT |
655 |
920 |
497 |
350 |
856 |
781 |
Demand for extruded products in Europe and North
America increased compared to the previous quarter by around 9
percent and 3 percent respectively, driven by seasonality.
In North America, total demand for extruded
products increased by around 3 percent compared to the same quarter
last year. The increase was driven by stronger automotive demand
and higher building and construction activities whereas demand from
commercial transportation was declining. In Europe, total demand
for extruded products increased by around 2 percent compared to the
same quarter last year.
Europe experienced stronger automotive and
transportation demand, as well as an improved building and
construction market.
Key figures per business area
Extrusion Europe |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
NOK million, except sales volumes |
|
|
|
|
|
|
Volume (kmt) |
148 |
157 |
142 |
130 |
154 |
155 |
Operating revenues |
5 366 |
5 468 |
4 932 |
4 565 |
5 553 |
5 999 |
Underlying EBITDA |
349 |
425 |
276 |
221 |
390 |
416 |
Underlying EBIT |
223 |
304 |
154 |
97 |
274 |
292 |
|
|
|
|
|
|
|
Extrusion North America |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
NOK million, except sales volumes |
|
|
|
|
|
|
Volume (kmt) |
150 |
155 |
149 |
131 |
150 |
151 |
Operating revenues |
5 265 |
5 234 |
5 183 |
4 617 |
5 514 |
5 753 |
Underlying EBITDA |
414 |
362 |
361 |
199 |
437 |
466 |
Underlying EBIT |
315 |
263 |
260 |
90 |
331 |
353 |
|
|
|
|
|
|
|
Building Systems |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
NOK million, except sales volumes |
|
|
|
|
|
|
Volume (kmt) |
19 |
21 |
18 |
19 |
20 |
21 |
Operating revenues |
1 869 |
1 939 |
1 680 |
1 685 |
1 830 |
2 044 |
Underlying EBITDA |
110 |
210 |
104 |
109 |
155 |
219 |
Underlying EBIT |
75 |
166 |
67 |
74 |
119 |
183 |
|
|
|
|
|
|
|
Precision Tubing |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
NOK million, except sales volumes |
|
|
|
|
|
|
Volume (kmt) |
37 |
40 |
37 |
35 |
36 |
38 |
Operating revenues |
1 620 |
1 664 |
1 549 |
1 543 |
1 651 |
1 734 |
Underlying EBITDA |
144 |
169 |
135 |
161 |
180 |
193 |
Underlying EBIT |
86 |
112 |
76 |
103 |
123 |
136 |
|
|
|
|
|
|
|
Other and eliminations |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
Underlying EBITDA |
-116 |
-33 |
-64 |
-37 |
-63 |
-43 |
Underlying EBIT |
-128 |
-41 |
-69 |
-28 |
-69 |
-49 |
Investor contactContact Stian HasleCellular +47 97736022E-mail
Stian.Hasle@hydro.com
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. Hydro disclaims
any obligation to update or revise any forward-looking statements,
whether because of new information, future events or otherwise.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
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