Norsk Hydro, a key player in the aluminium and renewable energy market, recorded a third-quarter net loss of 358 million Norwegian Kroner ($32.58 million) or 0.18 Kroner per share, a sharp contrast to the net profit of 6.85 billion Kroner ($623.35 million) or 3.34 Kroner per share from the same period last year.
Market Pressures and Strategic Shifts
Several factors contributed to this financial downturn, including decreased sales prices for aluminium and alumina, reduced volumes in extrusions and recycling, less CO2 compensation, and a significant allotment for a social program in Brazil. Despite reduced costs in raw materials, these challenges led to a net operational loss of 625 million Kroner ($56.875 million), a significant dip from the previous year’s net profit of 6.68 billion Kroner ($607.48 million).
In a detailed analysis of its performance, the company reported adjusted earnings per share from continuing operations at 0.27 Kroner, down from 2.91 Kroner. Furthermore, the Q3 adjusted EBITDA stood at 3.90 billion Kroner ($354.9 million), showing a decline from 9.72 billion Kroner ($884.52 million) in the third quarter of the previous year.
Moreover, total revenue and other income for the quarter were noted at 45.22 billion Kroner ($4.114 billion), a decrease from 54.91 billion Kroner ($4.996 billion) reported in the corresponding quarter of the previous year.
Despite these setbacks, Norsk Hydro is looking ahead, with plans to significantly expand its recycling capacity. By 2027, the company aims to introduce an additional 1 million tonnes of recycling capacity, focusing on Europe and North America, responding to the increasing industry demand for recycled aluminium. This strategic move signals the company’s commitment to sustainability and adapting to the evolving market landscape.
This may also be interesting: “Talum Embarks on Green Transformation with Smart Factory Initiative” 
