(RTTNews) - Hydro stated that its strategic agenda continues to guide capital allocation and capital discipline remains a key financial priority towards 2030. For 2024, Hydro expects 15 billion Norwegian Kroner in investments. The capex guidance for 2025 and 2026-2029 continues to be 15 billion Norwegian Kroner annually in 2024 real terms, with increasing allocation share towards growth and return seeking investments. There is potential for accelerated growth investments of 1-2 billion Norwegian Kroner per year, enabling the top of the EBITDA growth target ranges. The long-term sustaining capex is estimated at 9.0 billion Norwegian Kroner for 2025 and 8.5 billion Norwegian Kroner annually for 2026-2029, in real 2024 terms.
The company noted that improvement programs are central to Hydros strategy for resilience and value creation. Since 2009, Hydro has executed three major multi-year improvement programs, with the current program far exceeding the original target. Hydro estimates to deliver 9.9 billion Kroner in improvements with this program by end of 2024, with commercial initiatives contributing with an additional 3 billion Kroner in value. From 2025, a new 6.5 billion Kroner program aimed at 2030, will be launched. The company expects the improvement efforts to strengthen Recycling and Extrusions execution towards 2030, and reconfirmed 2030 adjusted EBITDA potential.
To strengthen the focus on Hydros 2030 strategy, battery materials and green hydrogen will no longer be strategic growth areas for Hydro and no further capital will be allocated. Battery and Havrand businesses will be phasedout.
Hydro remains committed to delivering consistent shareholder distributions. Distributions will be proposed by the Board in the fourth quarter release in February 2025.
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