Aluminium producer Norsk Hydro's Q2 core profit beats forecasts

Norwegian aluminium producer Norsk Hydro reported a quarterly core profit above market expectations on Wednesday, as higher aluminium prices and stronger recycling margins outweighed weaker energy output and adverse currency effects.

Hydro entered the quarter with elevated aluminium prices and regional premiums due to the Middle East supply disruption, though the company’s own exposure to Qatar has complicated its ability to fully benefit from the tighter market.

Its adjusted earnings before interest, taxes, depreciation and amortisation rose to 8.92 billion Norwegian crowns ($927.0 million) in the April-June quarter, from 7.79 billion crowns a year ago.

Analysts polled by the company had expected it to report a core profit of about 8.22 billion crowns on average.