The downturn continues for aluminum giant Norsk Hydro following downgrades from several brokerage firms on Monday.
The Oslo Stock Exchange started the day with a slight dip, but recovered to trade up 0.07 percent as of noon. Friday saw the Oslo Stock Exchange close the week with a decline. Elkem shares fell sharply after the industrial company reported the sale of parts of its business.
Oil prices have weakened by approximately one dollar since then, with a barrel of Brent crude currently trading at $67.85.
Hydro Downgrades and Market Reaction
Norsk Hydro released its fourth-quarter results over the weekend. The company reported falling revenues and an increased dividend to shareholders. On Monday, several brokerage firms, including Kepler Cheuvreux and Arctic Securities, downgraded the stock, according to Bloomberg. Hydro shares also experienced a significant drop on Friday, closing down nearly 6 percent.
The stock is currently down 2.68 percent.
Aker Solutions Secures Major Contract
The earnings season is starting slowly this week, but will pick up later with earnings releases from Dof Group and MPC Container Ships. Aker Solutions has secured a five-year framework agreement with Aker BP for all of the company’s central installations, where they will perform operations services and maintenance. The estimated value of the contract is between 8 and 12 billion Norwegian kroner.
Aker Solutions states that the agreement will have “significant” ripple effects for Norwegian industry. It will take effect on March 1, 2026, and includes options for extension for two additional four-year periods.
Aker Solutions shares are up 2.52 percent.
Lyra Energy Secures Private Power Purchase Agreement
Lyra Energy, a collaboration between renewable energy company Scatec, Standard Bank, and Stanlib in South Africa, has secured a private power purchase agreement for a 255 megawatt solar power plant. Purchase agreements have been entered into with three leading commercial players.
“The announcement of Lyra Energy’s first solar power plant in South Africa is a milestone for this trading platform,” says Scatec CEO Terje Pilskog. He believes the agreements demonstrate that the business community is increasingly demanding reliable, cost-effective, and clean energy.
Scatec will provide engineering services to the Thakadu solar power plant, which is expected to begin construction in the first quarter of 2026.
Scatec shares are down 0.09 percent.
Asian Markets Closed for Lunar New Year
Several markets in Asia are closed this week in connection with the celebration of the Chinese New Year. There was a slight increase on some of the exchanges that remained open during morning trading. Wall Street is also closed today due to Presidents’ Day.
More stock market news can be found throughout the day in E24’s Aksjelive.
The aluminum market, as highlighted by Norsk Hydro’s recent performance, is currently navigating a complex landscape. The downgrades from Kepler Cheuvreux and Arctic Securities suggest concerns about the company’s future performance, potentially linked to volatile aluminum extrusion markets as noted in a December 18, 2025 report. The broader US aluminum market is also facing uncertainty, with tariff risks, the outlook for demand under a new presidential administration, and potential interest rate cuts all contributing to the ambiguity, according to reporting from January 17, 2025.
The situation with Norsk Hydro is particularly noteworthy given its strong financial performance in the third quarter of 2025, with 2.2 billion NOK in free cash flow and 6 billion NOK in adjusted EBITDA. However, these positive results haven’t been enough to offset the current negative sentiment, indicating that external factors are playing a significant role in investor perception.
The Aker Solutions contract with Aker BP provides a contrasting narrative of positive momentum within the Norwegian energy sector. The substantial value of the contract (8-12 billion NOK) and its potential ripple effects on the Norwegian industry demonstrate continued investment and activity despite broader economic uncertainties.
Similarly, Lyra Energy’s power purchase agreement for the 255 MW solar plant highlights the growing demand for renewable energy solutions and Scatec’s position as a key player in this market. The project’s commencement in the first quarter of 2026 signals a continued commitment to expanding renewable energy infrastructure in South Africa.
