Norsk Hydro: up to $210 mln hit from Brazil refinery gas disruption
Norwegian company Norsk Hydro said it could take a financial hit of up to $210 million due to disruptions to natural gas deliveries at its Alunorte refinery in Brazil, forcing it to buy gas at spot-market prices.
(Updates with details from Norsk Hydro's statement, adds background) Oct 5 (Reuters) — Norsk Hydro said on Monday it could take a financial hit of up to $210 million as it continues to buy gas at spot-market prices following disruptions to natural gas deliveries at its Alunorte refinery in Brazil.
Here are more details: The Norwegian company estimates a $75 million to $100 million impact to its bauxite and alumina business in the third quarter due to lower production and purchase of gas above contracted prices It expects a further $90 million to $110 million hit in the fourth quarter from gas arbitrage costs at Alunorte Hydro said gas supplier CELBA notified Alunorte in August that gas availability had been disrupted. Since then, the refinery has not received its contracted volumes and has been buying gas at spot prices Alunorte had begun ramping up alumina production to full capacity after reaching a temporary agreement with CELBA in August. com; +91 9916719147)