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Hydro Third Quarter 2011 Results

The quarter was marked by higher production performance in bauxite and alumina, while seasonal declines and higher raw material costs had a negative impact on underlying results. Energy posted record third-quarter results. Bauxite and alumina are showing solid results, with Paragominas and Alunorte reporting increased quarterly production. The company is strengthening its focus on the ongoing ambitious cost improvement programs. Underlying EBIT for bauxite and alumina increased compared to the second quarter primarily due to improved production performance and better results for commercial activities. Underlying EBIT for primary metal declined compared to the second quarter due to lower sales volumes and higher raw material costs, partly offset by higher realized aluminium prices. Ramp-up of production at Qatalum, the 50/50 joint venture between Qatar Petroleum and Hydro, was completed and the plant reached full capacity contributing to increased production for the quarter. Global demand for alumina outside China was slightly higher in the third quarter compared to the second quarter mainly due to the ramp-up of new production capacity. Annualized alumina production outside China amounted to about 54 Mt. Alumina demand and production in China continued to increase in the third quarter compared to the previous quarter, mainly due to commissioning of new primary aluminium production and alumina projects (10/2011).

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