Norsk Hydro CEO on 1Q Earnings, Inflation

The video discusses cost pressures in the upstream sector due to rising energy costs and inflation, and how long-term contracts help mitigate these pressures. It also covers concerns about aluminium prices and demand, particularly in China and the US, and the potential impact of a recession. The impact of excluding Russian operations is addressed, with minimal exposure remaining. Finally, the video outlines plans for renewable energy projects and the timing of an IPO, considering current market conditions.

What is one of the main reasons for cost pressures in the upstream part of the aluminum industry?

• Technological advancements

• Increased competition

• Rising energy costs

• Decreased demand for aluminum

How does the company plan to mitigate cost pressures?

• By reducing production

• By increasing prices

• Through long-term contracts

• By outsourcing operations

What role does aluminum play in modern industries?

• It is a substitute for steel

• It is mainly used in packaging

• It is an enabler for electrification and decarbonization

• It is a primary material for construction

What is a potential risk for aluminum demand in the US?

• Decreased global GDP

• Increased production in China

• Technological advancements

• High energy prices leading to inflation

What is the company's exposure to Russian contracts?

• Significant and long-term

• Non-existent

• Increasing

• Limited in scope and time

What is the company's strategy regarding renewable energy projects?

• To partner with Russian companies

• To focus solely on traditional energy sources

• To build a robust portfolio and wait for the right market conditions for an IPO

• To sell off existing projects

What has affected the timing of the company's IPO plans for renewable projects?

• Regulatory issues

• Technological challenges

• Recent market volatility

• Lack of investor interest