Underlying EBIT for Energy increased compared to the previous quarter due to higher production, partly offset by higher production cost. The cost increase was mainly driven by transmission costs and property taxes.
Underlying EBIT for Sapa increased mainly due to seasonally higher demand and stronger margins.
During the first quarter, Hydro progressed according to plan on its “Better” improvement ambition targeting NOK 2.9 billion of annual improvements by 2019.
Operating cash flow amounted to NOK 0.1 billion for the first quarter, including a working capital build up of NOK 1.8 billion. Net cash used for investment activities amounted to NOK 1.3 billion. Hydro’s net cash position decreased during the first quarter by NOK 1.2 billion to NOK 3.9 billion at the end of the quarter.
Reported earnings before financial items and tax amounted to NOK 1,693 million in the first quarter. In addition to the factors discussed above, reported EBIT included net unrealized derivative gains of NOK 224 million and negative metal effects of NOK 43 million. Reported earnings also included a negative adjustment of NOK 15 million related to the sale of the Slim rolling mill in the fourth quarter of 2015. In addition, reported earnings included a net gain of NOK 26 million for Sapa (Hydro’s share net of tax), mainly relating to unrealized derivative gains.
