Norsk Hydro ASA — Earnings Release 2014

Apr 30, 2014

First quarter 2014: Higher sales volumes and power production lift results

First quarter 2014: Higher sales volumes and power production lift results

Norsk Hydro ASA's underlying earnings before financial items and tax rose to NOK

772 million in the first quarter 2014 from NOK 471 million in the fourth quarter

2013. The result was lifted by seasonally higher sales volumes and power

production.

* Underlying EBIT NOK 772 million

* Seasonally higher sales volumes

* Increased power production

* Primary aluminium demand outside China continues to exceed production

* Investment in new automotive line and in new recycling capacity

"We see signs of improvement for the aluminium industry as aluminium demand

outside China continues to exceed production. Based on increasing use

of aluminium in cars and rising demand for recycled metal, we are making

investments in our rolled products business in Germany to expand automotive and

recycling capacity. At the same time, our ongoing operational improvement

efforts continue with unabated strength in all areas," says President and CEO

Svein Richard Brandtzæg.

Hydro will invest EUR 130 million in a new automotive production line at its

rolled products plant in Grevenbroich, Germany. The new line, expected to be

completed in second half 2016, will expand annual capacity for aluminium car

body sheets to 200,000 from 50,000 metric tons. Also in the first quarter, Hydro

decided to invest EUR 45 million in new recycling capacity in Germany, in line

with an ambition to double the company's total recycling capacity by 2020.

Underlying EBIT for the Bauxite and Alumina business area improved compared to

fourth quarter of 2013 which included the settlement of claims relating to ICMS

taxes. Alumina production for the Alunorte refinery was stable, however, fuel

costs increased mainly due to the introduction of ICMS taxation on fuel oil

from February 1.

"Alumina production has recovered and stabilized after the problems at the

Alunorte refinery last year. Many indicators are now pointing in the right

direction, both at Alunorte and at the Paragominas bauxite mine. We

are confident that the experience gained will make operations more robust," says

Brandtzæg.

Underlying EBIT for Primary Metal was down in the quarter, primarily due to the

insurance settlement received in the fourth quarter. Higher product premiums and

increased sales volumes were partly offset by higher costs for alumina and power

and lower realized LME prices.

Excluding negative currency and ingot inventory effects, underlying EBIT for

Metal Markets improved mainly due to higher results from sourcing and trading

activities.

Rolled Products underlying EBIT increased in the first quarter due to seasonally

higher sales volumes and lower maintenance costs partly offset by lower margins.

Underlying EBIT for Energy increased mainly due to higher power production.

Underlying EBIT for Sapa improved compared to the fourth quarter, influenced by

seasonally stronger sales volumes.

Operating cash flow was negative NOK 0.7 billion for the first quarter impacted

by a seasonal increase in working capital and a tax payment related to a

disputed tax claim in Norway. Net cash used for investment activities amounted

to NOK 0.6 billion. Hydro's net debt position amounted to around NOK 0.6 billion

at the end of the first quarter.

Reported earnings before financial items and tax amounted to NOK 822 million in

the first quarter. Reported EBIT included net unrealized derivative gains

amounting to NOK 170 million in total. Reported earnings also included

impairment charges of NOK 33 million related to the agreed divestment of Hydro's

casthouse in Hannover and charges of NOK 86 million (Hydro's share) in Sapa

primarily related to rationalization activities.

Income from continuing operations amounted to NOK 462 million in the first

quarter including a net foreign exchange gain of NOK 193 million. In the

previous quarter, loss from continuing operations amounted to NOK 758 million

including a net foreign exchange loss of NOK 688 million.

Key

financial

information

NOK million, First Fourth First

except per quarter quarter %change prior quarter %change prior

share data 2014 2013 quarter 2013 year quarter Year 2013

----------------------------------------------------------------------------------

Revenue 18 282 16 570 10 % 16 109 13 % 64 877

Earnings

before

financial

items and

tax (EBIT) 822 (14) >100 % 704 17 % 1 663

Items

excluded

from

underlying

EBIT (50) 485 >(100) % 372 >(100) % 1 063

----------------------------------------------------------------------------------

Underlying

EBIT 772 471 64 % 1 076 (28) % 2 725

----------------------------------------------------------------------------------

Underlying

EBIT :

Bauxite &

Alumina (288) (379) 24 % (63) >(100) % (1 057)

Primary

Metal 312 484 (36) % 364 (14) % 1 422

Metal

Markets 141 190 (26) % 146 (3) % 594

Rolled

Products 181 100 81 % 152 19 % 615

Energy 435 383 14 % 517 (16) % 1 653

Other and

eliminations (8) (306) 97 % (38) 78 % (502)

----------------------------------------------------------------------------------

Underlying

EBIT 772 471 64 % 1 076 (28) % 2 725

----------------------------------------------------------------------------------

Underlying

EBITDA 1 861 1 619 15 % 2 212 (16) % 7 306

----------------------------------------------------------------------------------

Underlying

income

(loss) from

discontinued

operations - - - 49 (100) % 220

----------------------------------------------------------------------------------

Net income

(loss) 462 (758) >100 % 263 76 % (839)

Underlying

net income

(loss) 388 140 >100 % 649 (40) % 1 610

----------------------------------------------------------------------------------

Earnings per

share 0.19 (0.39) >100 % 0.14 37 % (0.45)

Underlying

earnings per

share 0.16 0.02 >100 % 0.30 (46) % 0.65

----------------------------------------------------------------------------------

Financial

data:

----------------------------------------------------------------------------------

Investments 546 1 057 (48) % 1 077 (49) % 3 761

Adjusted net

interest- (11

bearing debt 230) (10 128) (11) % (9 858) (14) % (10 128)

----------------------------------------------------------------------------------

Key

Operational

information

----------------------------------------------------------------------------------

Alumina

production (2)

(kmt) 1 428 1 452 % 1 361 5 % 5 377

Primary

aluminium

production (2)

(kmt) 484 492 % 478 1 % 1 944

Realized

aluminium

price LME                               (3)                (14)

(USD/mt) 1 749 1 802 % 2 043 % 1 902

Realized

aluminium

price LME                           (2)               (7)

(NOK/mt) 10 702 10 916 % 11 533 % 11 160

Realized

NOK/USD

exchange

rate 6.12 6.06 1 % 5.64 8 % 5.87

Metal

products

sales, total                            12

Hydro (kmt) 871           777 % 806 8 % 3 164

Rolled

Products

sales

volumes to

external

market (kmt) 243 226 8 % 236 3 % 941

Power

production 23

(GWh) 2 964 2 411 % 2 904 2 % 10 243

----------------------------------------------------------------------------------

Investor contact

Contact Pål Kildemo

Cellular +47 97096711

E-mail Pal.Kildemo@hydro.com

Press contact

Contact Halvor Molland

Cellular +47 92979797

E-mail Halvor.Molland@hydro.com

Certain statements included within this announcement contain forward-looking

information, including, without limitation, those relating to (a) forecasts,

projections and estimates, (b) statements of management's plans, objectives and

strategies for Hydro, such as planned expansions, investments or other projects,

(c) targeted production volumes and costs, capacities or rates, start up costs,

cost reductions and profit objectives, (d) various expectations about future

developments in Hydro's markets, particularly prices, supply and demand and

competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk

management, as well as (i) statements preceded by "expected", "scheduled",

"targeted", "planned", "proposed", "intended" or similar statements.

Although we believe that the expectations reflected in such forward-looking

statements are reasonable, these forward-looking statements are based on a

number of assumptions and forecasts that, by their nature, involve risk and

uncertainty. Various factors could cause our actual results to differ materially

from those projected in a forward-looking statement or affect the extent to

which a particular projection is realized. Factors that could cause these

differences include, but are not limited to: our continued ability to reposition

and restructure our upstream and downstream aluminium business; changes in

availability and cost of energy and raw materials; global supply and demand for

aluminium and aluminium products; world economic growth, including rates of

inflation and industrial production; changes in the relative value of currencies

and the value of commodity contracts; trends in Hydro's key markets and

competition; and legislative, regulatory and political factors.

No assurance can be given that such expectations will prove to have been

correct. Hydro disclaims any obligation to update or revise any forward looking

statements, whether as a result of new information, future events or otherwise.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1781080]