hydro Announces NOK 13.5 Billion Investment, Adjusts 2030 Targets
OSLO, Norway – Norsk Hydro will invest NOK 13.5 billion in 2024,according to a statement released by CEO Eivind Kallevik during the company’s investor day.The announcement comes as Hydro progresses with previously announced cost-cutting measures and adjusts long-term financial goals.
The company confirmed plans to cut 750 positions and achieve annual savings of NOK 1 billion, initially announced in late summer. Hydro stated it is ahead of schedule in reducing administrative roles as part of the 2025 restructuring.
Financial targets for 2030 have been revised. The EBITDA target for the extrusion business has been lowered from NOK 10-12 billion to NOK 8-10 billion, attributed to a delayed market recovery and reduced short-term capital allocation. The recycling target for 2030 remains confirmed, but with a lower EBITDA limit of five billion. Hydro reiterated its existing dividend policy.
Sparebank 1 Markets analyst Ole-Petter Sjøvold described the investor day news as largely anticipated. he expects the share price to align with comparable companies today.
The Hydro share has seen significant gains since this spring, prompting varied analyst opinions. Bloomberg reports nine “buy,” eleven “hold,” and three “sell” recommendations. Sjøvold downgraded his suggestion prior to the third-quarter report after the stock rose over 30 percent following “Liberation Day”-the implementation of US tariffs on Russian metal, including aluminum, which reduced market uncertainty. He currently recommends a “hold” rating with a price target slightly above the current share price.
Sjøvold noted that further share price thankfulness hinges on a shift in the aluminum market from a current surplus to a balanced or marginal deficit by 2026, characterizing the current “risk/reward” as relatively balanced.
