Norsk Hydro: third-quarter profit drops as Alunorte hits

(CercleFinance.com) - Norwegian aluminium producer Norsk Hydro posted a less-than-expected drop in its third-quarter profit, although said that reduced production at its Brazilian alumina refinery continued to have a negative impact on performance.


Earnings before financial items and tax (EBIT) fell to 2 billion Norwegian kronor in the three months to end-September, from 2.3 billion Norwegian kronor in the same quarter last year, Norsk Hydro reported on Wednesday.

"Third-quarter EBIT was well ahead of consensus (...) but progress at Alunorte appears to be limited," said analysts at UBS.

However, according to the broker, the situation at the Brazilian alumina refinery remains the "key catalyst" for the share.

"We continue the dialogue with the authorities with the aim to resume full production at Alunorte, but the timing remains uncertain," said CEO Svein Richard Brandtzaeg.

Norsk Hydro shares are currently trading up 1.5% at 41.4 Norwegian kronor, outperforming the Oslo market, which is up 0.6%.

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