Hydro's first quarter electrolytic aluminum production decreased by 8% year-on-year

Hydro recently released its financial report for the first quarter of 2023, with revenue of 48.534 billion Norwegian kroner, a year-on-year increase of 4.1% and a month on month increase of 10%. The adjusted EBITDA for the first quarter was NOK 7.525 billion, a year-on-year decrease of 33% and a month on month increase of 5%.
In the first quarter of 2023, Hydro's bauxite mineral production was 2.648 million tons, an increase of 0.4% year-on-year and a decrease of 6.2% month on month. Hydro has signed a contract with Glencore to sell a 30% stake in Brazil's Alunorte aluminum oxide plant and a 5% stake in Brazilian bauxite producer Minercao Rio do Norte. Glencore will acquire a 40% stake in MRN currently held by Vale, which will be acquired by Hydro from Vale and immediately sold to Glencore in a back-to-back transaction.
The Alunorte alumina plant has an annual production capacity of 6.3 million tons and a production capacity of 6.2 million tons in 2022. After this transaction, Hydro's shareholding will decrease from 92% to 62%. The annual production capacity of MRN bauxite is 12.5 million tons, and the production in 2022 is 12.3 million tons. After this transaction, the shareholding of Hydro will be reduced from 5% to 0%.
In the first quarter, Hydro's alumina production was 1.55 million tons, an increase of 2% year-on-year and a slight decrease of 0.6% month on month. The sales volume of alumina in the current quarter was 2.17 million tons, a year-on-year decrease of 4% and a month on month decrease of 2%.
The primary aluminum production in the first quarter was 499000 tons, a year-on-year decrease of 8% and a month on month decrease of 4%. The total sales of aluminum in the current quarter were 559000 tons, a year-on-year decrease of 7% and a month on month increase of 3%.