Hydro posts record revenue of NOK 207,929 million for 2022 on higher realized all-in metal & alumina prices

Hydro entered the year 2022 amid a strong aluminium market but soon was dominated by a devastating war in Europe, an energy crisis, inflation, and a global economic slowdown, including a significant fall in demand. But amid all this, the company succeeded in delivering record results for the year, as posted in its annual report. On Tuesday, February 14, Hydro posted a 38.94 per cent Y-o-Y hike in revenue from NOK 149,654 million to NOK 207,929 million in the annual financial and operational report for 2022. According to the company, their strong cost position and high prices of aluminium helped them earn higher revenue in 2022 than the previous year.

Hydro’s net income from continuing operations surged by 75.03 per cent from NOK 13,930 million in 2021 to NOK 24,381 million in 2022. Adjusted EBITDA increased by 41.61 per cent from NOK 28,010 million to NOK 39,664 million. Higher realized all-in metal and alumina prices, record high annual results in both extrusions and energy, and favourable currency led to the robust financial position in 2022. The realized alumina and aluminium prices in 2022 were US$382 per tonne and US$2,599 per tonne, compared to US$313 per tonne and US$2,364 per tonne in 2021.

Total capex in 2022 ended up at NOK 11.5 billion, up by 66.66 per cent from NOK 6.9 billion in 2021. Hydro invested in critical maintenance activities to safeguard production assets in every business area, such as relining in aluminium metal, bauxite pipeline section replacement in Paragominas, power plant rehabilitation, and various upgrades of presses in extrusions.

In 2019, Hydro launched an ambitious investment programme aiming for the improvements of NOK 7.3 billion annually by 2023. Since it reached ahead of schedule last year, the company further increased its ambitions to NOK 10 billion by 2025 and NOK 11 billion by 2027.

Along with the significant growth in financial position, Hydro has also grabbed attention with an improved bauxite output. In 2022, the company produced 11,012 thousand tonnes of bauxite compared to 10,926 thousand tonnes in the previous year. However, alumina production dipped from 6,305 thousand tonnes in 2021 to 6,193 thousand tonnes in 2022, and aluminium output from 2,244 thousand tonnes to 2,137 thousand tonnes.

In the annual report, Hydro also noted that its deliverables had a positive impact on the climate, the environment, and the society at large. The company’s green transition is indeed on its way. The fuel switch projects, changing energy sources from fuel oil and coal to natural gas and electricity at our alumina refinery Alunorte are progressing well.