Norsk Hydro A S Stock Price, News & Analysis

In Q3 2022, Hydro reported an adjusted EBITDA of NOK 9,721 million, up from NOK 7,219 million year-over-year, achieving a rolling Adjusted RoaCE of 27%. Contributing factors included higher metal and alumina prices and currency effects, although these were partially offset by rising upstream costs. Hydro's strategy appears robust with a focus on greener aluminum products, distributing an extra NOK 1.45 per share dividend, and initiating a NOK 2 billion share buyback program. However, concerns remain about high energy prices and market uncertainty due to global economic factors.

Hydro is set to announce its third quarter 2022 results on October 25, 2022, at 07:00 CEST. The quarterly report and presentation slides will be accessible on hydro.com.

In Oslo, Hydro will host an in-person presentation at 08:30 CEST, led by President and CEO Hilde Merete Aasheim. A virtual Q&A session will follow at 11:00 CEST. Registration for both events is required via provided links.

On October 6, 2022, the European Commission initiated a Phase II review of Hydro's acquisition proposal for Polish recycler Alumetal S.A. This review arises from initial concerns identified during the preliminary assessment stage. Hydro launched a tender offer for 100% of Alumetal's shares on April 29, 2022, extending the subscription period to October 10, 2022. However, due to the Phase II review, the public tender offer will now expire before the subscription period concludes. Hydro remains dedicated to collaborating with the Commission throughout this process.

On October 6, the Norwegian government announced its 2023 budget proposal, impacting Hydro's operations.

The key aspects include an increase in the resource rent tax on hydropower from 37% to 45%, expected to cost Hydro NOK 250 - 300 million for 2022.

Additionally, the CO2 compensation scheme, crucial for power-intensive industries, now sets a floor at NOK 200 per ton CO2, with Hydro anticipated to receive NOK 2.2 - 2.3 billion in compensation for 2022, up from NOK 1.7 billion for 2021. These changes aim to support Hydro's competitive position amid rising power costs.

Norsk Hydro ASA announced the completion of its share buyback program, which ran from September 23, 2022, to March 29, 2023. During this period, a total of 865,000 shares were repurchased at an average price of 57.13 NOK, totaling 49,415,263 NOK. Following these transactions, Norsk Hydro owns 17,317,403 shares, amounting to 0.84% of its share capital. This buyback aims to enhance shareholder value and reflects confidence in the company's future performance.

Trond Olaf Christophersen has been appointed as the Executive Vice President for Corporate Development at Hydro, effective November 1. He succeeds Helena Nonka, who is leaving for new opportunities. Christophersen, with Hydro since 1997, previously served as Senior Vice President and Head of Recycling in Aluminium Metal, and has held various leadership roles across Hydro’s operations. Additionally, Therese Rød Holm has been named Executive Vice President for Communication & Public Affairs, effective October 1, continuing her previous role.

Hydro is partially curtailing aluminium production at its Karmøy and Husnes plants in Norway due to reduced market demand in Europe. This decision results in a 110,000-130,000 tonnes reduction in annual production capacity. The company cites market uncertainty and a drop in demand leading to stock accumulation as primary reasons. Despite the short-term decline, Hydro remains optimistic about long-term demand for aluminium, particularly in the green transition, and plans to utilize this time for necessary plant investments.

Hydro plans to release its third quarter 2022 results on October 25, 2022, at 07:00 CEST. The quarterly report and presentation will be accessible on hydro.com.

Additionally, Hydro will hold an in-person presentation at 08:30 CEST and a virtual Q&A session at 11:00 CEST on the same day.

Helena Nonka, Executive VP of Corporate Development at Norsk Hydro, sold 1,528 shares at NOK 59.58 each on September 23, 2022. These shares were allocated to her through the Long-Term Incentive program in May 2022. Nonka plans to leave the company, with her final day being September 30, 2022. The proceeds from the sale will benefit Norsk Hydro ASA. This information complies with the Norwegian Securities Trading Act disclosures.