Norsk Hydro
Note: This is a daily stock update and the information stands true as of 06/03/26, 09:00 CET.
Company Update:
Expert Opinion:
Norsk Hydro still offers an attractive profile as it benefits from its own energy sources. The company is one of the largest hydropower producers in Norway. At this stage, and considering the geopolitical situation, Norsk Hydro is probably the best please to hide in the metals and mining space.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Since the unrest in Iran broke out last week, there has been a sizeable uptick in aluminum (see below) while other key base metals are marginally down. This notable uptick for the white metal is attributed to two key factors:
1/ Middle East accounts for 8-10% of global aluminium output, where force majeure has already been announced by key players (including Norsk Hydro); and
2/ Energy accounts for 25-30% of aluminium’s cash costs and hence, energy market uncertainties are a big challenge for smelters dependent on external energy purchases.
So, while Metals & Mining sector is down c.5% over last one week, Norsk Hydro is the best-performer – up 3.1%, despite the force majeure at Qatalum (its 50%-owned JV). Overall, we still view Norsk Hydro as a quality sector bet, especially at a time when other (pricing) excesses are unwinding, and/or profit-booking is (expected to get) underway.
1/ Middle East accounts for 8-10% of global aluminium output, where force majeure has already been announced by key players (including Norsk Hydro); and
2/ Energy accounts for 25-30% of aluminium’s cash costs and hence, energy market uncertainties are a big challenge for smelters dependent on external energy purchases.
So, while Metals & Mining sector is down c.5% over last one week, Norsk Hydro is the best-performer – up 3.1%, despite the force majeure at Qatalum (its 50%-owned JV). Overall, we still view Norsk Hydro as a quality sector bet, especially at a time when other (pricing) excesses are unwinding, and/or profit-booking is (expected to get) underway.
Expert Opinion:
Norsk Hydro still offers an attractive profile as it benefits from its own energy sources. The company is one of the largest hydropower producers in Norway. At this stage, and considering the geopolitical situation, Norsk Hydro is probably the best please to hide in the metals and mining space.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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