Norsk Hydro ASA — Earnings Release 2016

Jul 15, 2016

Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2016

Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2016

Underlying EBIT for Sapa increased compared to the previous quarter, mainly due

to seasonally higher market demand and stronger margins.

Underlying EBIT for Sapa increased significantly compared to the same quarter of

the previous year. Earnings improved across all business areas, driven by

positive effects from improvement programs, increased share of value-add

products and positive market developments. The second quarter last year was

negatively influenced by sharply falling metal premiums in North America.

Underlying EBIT for the first half of 2016 improved compared with the same

period in 2015, influenced by the same factors discussed above.

+--------------+-----------+----------+----------+---------+---------+---------+

|Key Figures - |Second |First |Second |First |First | |

|Sapa (100%)  |quarter |quarter |quarter |half |half |Year 2015|

| |2016 |2016 |2015 |2016  |2015  | |

+--------------+-----------+----------+----------+---------+---------+---------+

|NOK million, | | | | | | |

|except sales |  |  |  |  |  |  |

|volumes | | | | | | |

+--------------+-----------+----------+----------+---------+---------+---------+

|Operating | 14 071| 13 905| 14 484| 27 976| 28 535| 55 252|

|revenues | | | | | | |

+--------------+-----------+----------+----------+---------+---------+---------+

|Underlying | 1 132| 901| 799| 2 033| 1 504| 2 729|

|EBITDA | | | | | | |

+--------------+-----------+----------+----------+---------+---------+---------+

|Underlying | 804| 571| 483| 1 375| 875| 1 407|

|EBIT | | | | | | |

+--------------+-----------+----------+----------+---------+---------+---------+

|Sales volumes | 366| 349| 358| 715| 711| 1 363|

|(kmt) | | | | | | |

+--------------+-----------+----------+----------+---------+---------+---------+

|Reported EBIT | 920| 655| 65| 1 574| 266| 528|

+--------------+-----------+----------+----------+---------+---------+---------+

Demand for extruded products in Europe and North America increased compared to

the previous quarter by 4.5 percent and 3 percent, respectively, driven by

seasonality.

Compared to the same period last year, market demand increased by 2.5 percent in

North America and 1.5 percent in Europe. In North America, building and

construction activity and automotive demand contributed positively. In Europe

there were positive developments in automotive and transportation and a mixed

picture in building and construction.

Going forward, a continued moderate market growth is expected in Europe, while

certain market segments in North America show indications of flattening out. In

both North America and Europe, aluminium substitution in the automotive industry

is contributing positively. The second quarter is a seasonally strong quarter,

and demand traditionally decreases in the third quarter.

Investor contact

Contact Stian Hasle

Cellular +47 97736022

E-mail Stian.Hasle@hydro.com

Press contact

Contact Halvor Molland

Cellular +47 92979797

E-mail Halvor.Molland@hydro.com

Certain statements included in this announcement contain forward-looking

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

forecasts, projections and estimates, (b) statements of Hydro management

concerning plans, objectives and strategies, such as planned expansions,

investments, divestments, curtailments 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, and (i) qualified statements such as "expected", "scheduled",

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

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 businesses; 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 because of new information, future events or otherwise.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#2028793]