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• Adjusted EBITDA: NOK7.7 billion for Q4 2024.

• Free Cash Flow: NOK1.7 billion for Q4 2024.

• Adjusted RoaCE: 8.5% for Q4 2024.

• Revenue: Increased by 18% year-over-year to NOK55 billion for Q4 2024.

• Net Income: NOK1.8 billion for Q4 2024.

• Adjusted Net Income: NOK2.6 billion for Q4 2024.

• Adjusted EPS: NOK1.11 per share for Q4 2024.

• Dividend Proposal: NOK2.25 per share, representing 50% of adjusted net income.

• Net Debt: Increased by NOK1.3 billion to NOK14.7 billion at the end of Q4 2024.

• Alumina Market Deficit: 1.4 million tonnes in 2024.

• Extrusion Sales Volume: Declined by 7% year-over-year in Q4 2024.

• Aluminum Metal Adjusted EBITDA: NOK1.9 billion for Q4 2024.

• Energy Adjusted EBITDA: NOK1.15 billion for Q4 2024.

• CO2 Emission Reduction Target: Achieved 10% reduction one year ahead of schedule.

• Full-Time Positions Reduced: 900 positions through divestments, plant closures, and cost-cutting measures.

• Warning! GuruFocus has detected 3 Warning Signs with ETCMY.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Norsk Hydro ASA (NHYDY) achieved a record low TRI rate in Q4, indicating improved safety performance.

• The company delivered an adjusted EBITDA of NOK7.7 billion and a free cash flow of NOK1.7 billion, reflecting strong financial performance.

• Norsk Hydro ASA (NHYDY) achieved its 2025 CO2 emission reduction target of 10% one year ahead of schedule.

• The company strengthened key partnerships to accelerate the green aluminum transition, including collaborations with Rio Tinto and Siemens Mobility.

• A proposed cash dividend of 50% of adjusted net income, translating into NOK2.25 per share, demonstrates a commitment to shareholder value.

Negative Points

• There was a slight increase in high-risk incidents, highlighting ongoing safety challenges.

• Hydro extrusions faced weak market demand, necessitating significant restructuring measures.

• The US reintroduced Section 232 tariffs, imposing a 25% duty on imported aluminum and steel, potentially impacting costs.

• The extrusion market continues to face challenging conditions, particularly in Europe, with weak demand persisting.

• In Brazil, capped energy deliveries and squeezed profits from solar and wind projects led to NOK0.4 billion in impairments.

Q & A Highlights

Q: Historically, you have seen an escalation in fixed costs which now appears to be reversing with a large step down in fixed cost of NOK700 million to NOK800 million. Does this get up to a new normal for fixed cost or is it temporary? A: Trond Olaf Christophersen, CFO, explained that the reduction is due to a NOK300 million social provision in Q4 and seasonally higher project costs, which are not expected to recur in Q1. Long-term, no change in fixed cost level is anticipated.