OSLO (Reuters) – Norwegian aluminium producer Norsk Hydro on Tuesday posted third-quarter profits well above expectations but said its outlook had been made more uncertain as high energy prices and inflation impact growth prospects.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 9.72 billion Norwegian crowns ($926.02 million) in July-September from 7.22 billion a year earlier, beating an average analyst forecast of 7.84 billion.
The firm, which ended metals production at its Slovaco plant in Slovakia in September due to high power costs, last month also cut output at two of its plants in Norway, citing market uncertainty and a decline in demand.
“The war in Ukraine, high energy prices, and concerns around inflation and increasing interest rates continue to add uncertainty and impact growth forecasts for 2022 and 2023,” Hydro said in a statement.
“In the extrusion market, the demand for the industrial, and the building and construction segments have weakened into the third quarter, while growth in automotive demand is improving slightly as supply chain issues are easing,” it said.
Aluminium prices on the London Metal Exchange rose sharply in early 2022, hitting record highs above $4,000 a tonne, but have since fallen to trade at $2,178 on Tuesday.
($1 = 10.4965 Norwegian crowns)
(Reporting by Victoria Klesty and Terje Solsvik, editing by Stine Jacobsen)
