Hydro has reported energy challenges and a decrease in revenue amid uncertain market factors globally.
An uncertain market was reflected in comments made by President and CEO of Hydro, Eivind Kallevik, in an update with investors following the results.
Mr Kallevik spoke about the future of the Tomago smelter in Australia, which Hydro is a major shareholder in.
Mr Kallevik stated: "Tomago is, of course, placed in an area where renewable power is hard to get in Australia, and the power situation is pretty tight, leading to high energy cost.
“Currently, today, energy cost is roughly 40% of operational costs for the Tomago smelter.
“We continue to work with the stakeholders to see if there are any opportunities to get renewable power post the end of 2028, but it is a challenging situation. We will make sure that we update the market if and when there are news in this context.”
Reliable access to renewable energy remains a key focus of Hydro’s operations, demonstrated by its energy deal with Alouette.
In the third quarter, Hydro’s joint venture smelter, Alouette, reached an Agreement in Principle (AiP) with the Government of Québec and Hydro-Québec to secure renewable power supply for the period 2030-2045.
The agreement will ensure stable, competitive energy in a tightening market and reinforces Alouette’s position as the largest aluminium smelter in North America.
Hydro’s adjusted EBITDA for the third quarter of 2025 was NOK 5,996M ($599.4M), down from NOK 7,367M ($736.5M) in the same quarter last year.
The results decreased from lower realised alumina prices and a stronger NOK, which was partly offset by higher primary and alumina volumes, positive gain from increasing US Midwest premium in extrusions and realisation of previously eliminated internal profits.
For the full third quarter results click here.
