Norsk Hydro A S - NHYDY STOCK NEWS

Hydro’s Slovalco aluminium facility in Slovakia will cease primary aluminium production by September 2022 due to adverse market conditions and high electricity costs. While the casthouse will continue recycling 75,000 tonnes of aluminium annually, the closure affects 300 employees and will result in a positive EBITDA impact of NOK 1.6 billion in H2 2022. The plant previously curtailed 40% of its capacity and will mothball primary production lines, which may resume in the future if conditions improve.

Hydro Sunndal is set to face a significant production impact as 665 employees, represented by the labor union Industri Energi, will go on strike starting August 22. This escalation follows earlier mediations that saw the initial strike begin on August 15, affecting other members but not Hydro employees. The strike will result in a 20% production shutdown over the first four weeks at the primary metal plant, although other Hydro facilities remain unaffected. The production reduction is guided by a specific agreement aimed at managing the process responsibly.

Norsk Hydro has announced its Capital Markets Day 2022, scheduled for December 15 in London, UK. The event will feature presentations from Corporate Management, offering an annual update on the company's activities, market developments, and outlook. Following the presentations, there will be Q&A sessions. Additionally, December 16 is set aside for one-on-one meetings between Hydro's management and investors or analysts. A formal invitation and agenda will be provided later to participants.

Hydro's adjusted EBITDA for Q2 2022 reached NOK 11,594 million, a significant increase from NOK 6,598 million in Q2 2021, driven by strong demand and record results across Aluminium Metal and Extrusions. Despite this, the company faces increasing market uncertainty due to high energy prices and a softening aluminium market. Hydro plans an additional cash dividend of NOK 3 billion and a NOK 2 billion share buyback program. The company aims to double sales of greener aluminium products by 2025, aligning with its decarbonization roadmap.

Hydro's second quarter results for 2022 will be announced on July 22, 2022, at 07:00 CEST. The report and presentation slides will be accessible on www.hydro.com at that time. Pål Kildemo, Executive Vice President and CFO, will host an audio webcast and conference call at 08:30 CEST, with a Q&A session following the presentation. Note that there will be no physical presentation or press conference, and participants can register to ask questions during the call.

Helena Nonka, the Executive Vice President of Corporate Development, is leaving Hydro, effective September 30. The company has initiated the search for her successor. Nonka's departure may raise concerns regarding leadership stability and future strategic direction. Investors will be closely monitoring the transition process to ensure that it does not adversely affect Hydro's operational focus or market perception.

Hydro will release its second quarter results for 2022 on July 22 at 07:00 CET. The results, along with presentation slides, will be accessible on www.hydro.com. Executive Vice President and CFO Pål Kildemo will conduct an audio webcast and conference call at 08:30 CET on the same day. There will be no physical presentation or press conference. A Q&A session will follow the presentation, and interested participants must register to join the conference call.

Hydro Rein and Macquarie Asset Management’s Green Investment Group have established a joint venture to develop the Feijão project, a 586 MW combined wind and solar power initiative in Brazil. This project will provide all necessary electricity for Hydro’s Paragominas bauxite mine and help reduce carbon emissions from the Alunorte alumina refinery. The investment for the wind farm is estimated at USD 700 million, with Hydro Rein holding a 49.9% stake. The project is crucial for Hydro's goal of a 30% CO2 reduction by 2030.