Norsk Hydro: shares inch up after first-quarter results

(CercleFinance.com) - Norway's Norsk Hydro reported a rise in first-quarter results on Wednesday, thanks to higher prices, and despite an increase in raw material costs.


Hydro, one of the world's biggest aluminium makers, said underlying earnings before financial items and tax increased to 3.15 billion Norwegian kronor in the quarter, up from 2.28 billion Norwegian kronor in the same quarter last year.

The increase mainly reflects a higher all-in metal price and higher realised alumina price, but was partly offset by increased raw material costs, it said.

Norsk Hydro said it still expects global primary demand to increase by 4-5% in 2018, but also warned that US sanctions on Russian rival Rusal have caused "great uncertainty" on the market.

In addition, and due to legal issues in Brazil, Hydro's cost program is not expected to reach the target of 500 million kronor this year.

Shares in Norsk Hydro were up 0.2%, outperforming Oslo's benchmark bourse index OSEBX, which was down 1.1%.

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