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Norsk Hydro 4Q: Missed Estimates

BASIC INDUSTRIES
  • Expect small negative for spreads. Leverage increasing, but still below 1x.
  • Adj. EBITDA missed expectations by 14%, -48% YoY. Revenue beat by 5%, +6% YoY.
  • Management discussed ongoing macro headwinds pressuring construction and industrial demand for aluminium, impacting prices. Higher fixed costs also impacted negatively.
  • Achieved NOK3bn WC release (7bn for FY23) and reduced adj. net debt from NOK 20.4bn to 18bn. Adj. ND/EBITDA up from 0.2x to 0.8x YoY.

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