2024 was characterized by increasing geopolitical tensions and unpredictability. Despite challenging market conditions, Hydro is strengthening its position in the market. Hydro is on a solid path executing on its 2030 ambition of pioneering the green aluminium transition, powered by renewable energy.
The green transition is progressing and aluminium demand from sectors supporting it remains robust. Realizing the low-carbon circular economy requires bold moves and Hydro is determined to accelerate the green aluminium transition.
“We are committed to execute on our strategy. Important milestones driving the green aluminium transition have been reached in all parts of the company in 2024 and we are well positioned to reach our ambitions for 2030,” says Eivind Kallevik, President and CEO of Hydro, in his Letter to Stakeholders in the Integrated Annual Report 2024.
Adjusted EBITDA for the full year of 2024 amounted to NOK 26,318 million, compared with NOK 22,258 million in 2023. Higher alumina price, lower raw material costs, and positive currency effects were partly offset by lower extrusions and recycling volumes, and higher fixed costs.
Hydro had an adjusted RoaCE of 12 percent over the last five years, above the target of 10 percent over the cycle. Reflecting the current volatile market environment, and a year with high growth and return-seeking investments, the adjusted RoaCE for 2024 ended at 8.5 percent.
Hydro has delivered NOK 10.1 billion from improvement programs since 2018, surpassing the NOK 9.5 billion target set last year. Commercial initiatives have generated NOK 2.6 billion in value. These initiatives and improvement programs enhance Hydro’s competitive edge and support earnings resilience across economic cycles.
Improved earnings allow for competitive shareholder returns. Since 2019, Hydro has distributed NOK 35.7 billion to shareholders, with a proposal to pay out another NOK 4.5 billion for 2024, representing 50 percent of adjusted net income.
Positioned to succeed towards 2030
Hydro has already reached the 2025 decarbonization targets and in 2024 key milestones were achieved on the path to the 2030 and 2050 targets. Multiple initiatives are being pursued to reduce greenhouse gas emissions within smelting, casting and recycling. There is a growing demand of sustainable materials, and partnerships help to position and accelerate greener earnings uplift. Hydro continues to be robust while improving efficiency and sustainability through technology and innovation.
Aluminium demand is set to increase significantly towards 2050, driven by the green transition. This creates opportunities for Hydro's low-carbon and recycled products. Hydro continues to thrive in a decarbonizing world with certified, traceable and low-carbon solutions. Hydro is well positioned for its journey towards the 2030 strategy, and constantly adapts to an evolving geopolitical and macro-economic landscape. Going forward Hydro will continue to push on executing growth, value creation and sustainability.
Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com
Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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