Investor Presentaiton
2025 hedge position increased by 20 kt during the quarter
Aluminium hedges of 320-460 kt/yr 2024-25 in place
•
2024: 440 kt hedged at a price of ~2500 USD/t
•
•
•
2025: 320 kt hedged at a price of ~2500 USD/t
Pricing mainly in NOK, with USD hedges converted to NOK via
USD/NOK derivatives
Corresponding raw material exposure partially secured using financial
derivatives or physical contracts
B&A and AM BRL/USD Hedge
•
USD 772 million sold forward for 2024-2026
•
USD 335 million 2024 at rate 6.19
•
USD 267 million 2025 at rate 5.33
Strategic hedging status
NOK Billions
MtM
Settlements
Aluminium
-6.1
Power
2.4
Coal, fuel oil and other
0.9
USD/NOK
-0.8
USD/BRL
1.0
Total settlement
-2.6
Aluminium
0.0
Coal, fuel oil and other
-0.2
MtM active hedges
BNOK 0.6
USD/NOK
-0.1
USD/BRL
0.9
Total settlement and MtM
-1.9
•
USD 170 million 2026 at rate 5.48
• Aim to reduce volatility and uncertainty in Alunorte and Albras cash
flows, as well as support robust cost curve positions
Utilizing Hydro's hedging policy to deliver on strategic
ambitions
Flexibility to hedge in certain cases
-
Support strong cost position
-
Strong margins in historical perspective, e.g., supporting
ARoaCE target
- Larger investments
Hydro
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