Norwegian aluminium producer Norsk Hydro ASA released its annual report on Friday. Despite the challenges to the global economy and the worldwide aluminium market, the firm reported strong results even in the face of coronavirus’s impact.
For the year 2020 Hydro reported income of NOK138,118 million, down from the prior year’s income of NOK149,766 million. Underlying EBITDA totaled NOK6,051 million, nearly doubling 2019’s number of NOK3,359 million. Leading the charge was its extrusion business, which contributed NOK2,196 million, up slightly from the year prior’s total of NOK2,009 million. Following that was its bauxite and alumina business, which doubled 2019’s total at NOK1,806 million. Hydro’s aluminuim metal business followed that by inverting 2019’s loss of NOK1,259 million to generate NOK1,225 million in positive underlying EBITDA in 2020.
Net income last year totaled NOK1,660 million, reversing a net loss of NOK2,370 million the year prior.
From a production standpoint, Hydro had a strong year in 2020. The firm mined 8,640 thousand metric tons of bauxite, up from last year’s total of 7,360 thousand metric tons. Alumina production rose from 4,487 thousand metric tons in 2019 to 5,457 thousand metric tons last year. Meanwhile, primary aluminium production was essentially level, rising 53 thousand metric tons from 2019 to a total of 2,091 thousand metric tons last year.
“The pandemic put us all to the test last year. Yet, Hydro managed an extraordinary 2020 carefully, emerging stronger and well positioned to deliver on our agenda to become a profitable and more sustainable industry leader,” commented President and CEO Hilde Merete Aasheim in a related press release.
“We have accelerated our improvement efforts in 2020. Our extended program targets NOK 8.5 billion by 2025 across all business areas and staffs. I am happy that we exceeded our improvement target and achieved savings of NOK 4.2 billion for 2020, amounting to about half of the overall 2025 ambition.”
“This March we reached another milestone with the finalization of the strategic review of the Rolling business and with a conclusion to sell the business to the U.S.-based private equity firm KPS Capital Partners,” she continued. “The agreement marks another step toward making Hydro a profitable and more sustainable industry leader – to the benefit of our employees, our customers and our shareholders.”