Welcome everyone to the presentation of Hydro's Q4 results, 2013. Welcome also to all of you following us on webcast today. Our results will be presented as usual by our CEO, Svein Richard Brandtzæg, and our CFO, Eivind Kallevik. After the presentation, we will have a little bit of time, not that much, for a Q&A and one-on-one interviews also. Please, Svein Richard.
Thank you very much. 2013 was a very important year for us, where we crossed the finishing line with the $300 program, which has improved our competitive position. Our employees has done a tremendous job, and I think they all deserve an Olympic medal for delivering on our ambitions. As you have also seen previously, improvements has been a trademark for our company, and I will continue to report on our improvements also in the coming quarters. Looking at the market situation, we see that there is a better balance today with the demand slightly above production. I think we are off for a better year in 2014.
If you look at the underlying results, NOK 483 million in the Q4 , which is down NOK 180 million compared to the Q3 , and up NOK 310 million compared to the Q4 in 2012. We delivered on the $300 Program in the end of the year, which has an impact of NOK 1.5 billion Norwegian kroner on the bottom line. Alunorte production is now coming up to the levels that we promised previously. Bauxite & Alumina result was impacted by the ICMS tax charges. In the Primary Metal, the result was lifted by the insurance proceeds after the fire in the cooling water tower in the beginning of 2012.
Normally, Q4 is a weaker quarter due to seasonal variations, which is normally impacting our downstream businesses like Rolled Products and Sapa joint venture. We saw the seasonality was less prominent in the Rolled Products this quarter, but they still had an impact. In energy, we had lower production in the Q4 compared to the Q3 , where it was record high production for the Q3 in energy. The board of directors is proposing a dividend of 0.75 NOK per share, which again is reflecting our ambition to deliver cash return to our shareholders, but also to again reflecting the strong balance sheet. Also the fact that we are able to deliver positive cash return, cash flow on low aluminum prices.
This will be decided in the annual general meeting in May, the seventh of May. If you then move over to the development in the marketplace and start with the standard ingot premiums, which are now too at record high levels. It started with an announcement in July when LME decided to change the warehousing rules to maximum 50 days for canceled warrants that will be introduced from first of April. Several customers expected then that the weakening of the standard ingot premiums that we saw after that announcement would continue.
What happened was that it was a combination of curtailments, better industrial activity, and in the end a situation where a lot of customers had to book metal for at very much higher ingot premiums than they expected. What we see now is that in the U.S. market, the standard ingot premiums are now at $450 per ton. In the European market, about $350 per ton. Aluminum prices has been weakened through the quarter, trading between $1,715 and $1,900 per ton. The realized price was $1,802 per ton, coming down from $1,822 in the previous quarter.
Again, in dollar terms, it was slightly lower prices in the Q4 compared to Q3 . Due to strengthening of dollar in Norwegian kroner, it was slightly better. We have sold 50% of the metal for the Q1 at this $1,770 per ton. It is not easy to explain the development on LME based on the supply-demand balance. It's not straightforward, the explanation, if you only look at the LME development. I think that LME normally has been macro and sentiment driven. We have seen also in several other commodities than aluminum that there's been softening prices due to uncertainty in the macroeconomic picture, but also uncertainty about China.
I think it's better for us now to take a look at the all-in aluminum price when we take LME plus the ingot premiums and see the development there. Because the ingot premiums now is a major factor. If you look at the last week's development, there has in fact been an improvement of the all-in metal price with 5% in the aluminum market in the U.S. and about 1% in the European market when we include now the standard ingot premiums. Again, showing that there is improvement in the metal balance, and there is a fairly tight physical market. If you then take a look at inventories, the total reported inventories are south of 7 million tons. More than 5 million tons is registered in the LME inventories.
If you then add up the unregistered inventories, we have seen a slight reduction in volumes, again reflecting the better supply-demand balance. If you then moved over to the supply-demand balance, look at the green area is the demand. 1% lower demand in the Q4 compared to the Q3 , but 4% higher demand in the Q4 of 2013 compared to the Q4 of 2012. In combination with the lower production, we see that there is a slight deficit. The demand is slightly exceeding the production this year. We expect for 2014 demand of 2%-4% in the world outside China. There are curtailments announced that is supporting, again, a better supply-demand balance, but also ramp ups.
All in all, for this year, we expect that there will be a slight deficit in the market. Again, there is an overhang of huge inventories. The alumina price is strengthened through the quarter, about $6 compared to the Q3 , traded at average of $323 per ton. We are now trading at $335 per ton. It's improving even more now in the beginning of the Q1 this year. We have all seen the announcement from Australia that the Gove Alumina Refinery will be closed, and also the fact that Indonesia now has introduced a ban on export of bauxite that will influence on the market.
If you look at the percentage of alumina price compared to LME, it's record high. It's at 18.5%. But if you then include the ingot premium as a part of the metal price, then it's around 16%, but still record-high levels. China plays a very important role, as we all know, and we follow carefully the import-export balance from China. What has been seen in 2013 is that it was a record year of bauxite import. We know that a lot of companies in China now has established themselves with huge inventories of bauxite due to the expectation of the ban from Indonesia.
There are 5 or 6 to 12 months inventories of bauxite in China, mainly again preparing for the ban. We saw some higher alumina imports in the Q4 this year compared to previous, which could be again a development, but it's too early to say if China now will turn into more import of alumina instead of bauxite, if bauxite will be even more tight. If you look at the premium, the primary market, there were no quite good balance between export import in the semi-fabricated and fabricated products. It's quite similar levels as we have seen previously on export from China. If you then take a closer look at the imports of bauxite to China, this figure show the different sources.
The green one is the bauxite from Indonesia, the blue from Australia, and on top some other sources, among them, bauxite from Brazil, that where we also have contributed with small volumes. Again, Indonesia is definitely the most important source of bauxite to China. 70% of the imported bauxite to China comes from Indonesia. We saw the effect when Indonesia introduced export restrictions in 2012. That was drastic reduction of the bauxite, but that was reversed due to court ruling later. It the export increased again. From twelfth of January, then the new ban was introduced. It's difficult to say the long-term effect of this, but of course, there is a big inventory of bauxite in China. They will probably try to find other sources.
This is a major change in the bauxite market that could also influence the alumina market. If you take a look at the situation in Brazil in our own alumina refinery, you all remember the power outages that we had last year, two consecutive external induced power outages that influenced the production. We lost volumes in the Q2 and gradually build up. In the Capital Markets Day, we refer to a level of 5.6 million tons speed in the Q4 , but we ended up at 5.8 million ton speed in the Q4 . If you recalculate this, you'll easily see that we have been producing around 6 million tons of bauxite during December, and also that continues into 2014.
That means that we have now come back to even higher levels than we had before the power outages, and that the operational improvements now has come to the level that we promised and expected. We are now stabilizing the production at these levels and also do quite a lot of work to make the plant more robust also if similar episodes should happen in the future. The plant is now moving in absolutely in the right direction. The B&A program we announced previously, I would say that we lost the opportunities in 2013 due to the downturn of volumes. We have not reduced our ambitions to deliver NOK 1 billion improvement in the Bauxite & Alumina business area within the end of 2015.
The ambitions of improvements this year is NOK 600 million in Bauxite & Alumina. We announced in the end of January that the authorities in Brazil has introduced the ICMS tax that will impact Bauxite & Alumina. This is about fuel oil, where they have now changed the collection point of the tax from distributors to oil refinery. That means we have again to pay this tax, which was similar situation as we had in 2012 for some months. We also have ICMS tax on electricity purchase. This will cost us NOK 20 million every quarter. On fuel oil it will cost us NOK 150 million per quarter.
Of course, we are working actively with authorities to minimize the effect of this. We are discussing different solutions, and we will come back to that later. We are very active now in Brazil to discuss the situation with the authorities because this is a change of frame conditions. We are supporting to develop our viable business in Brazil. We need stable long-term frame conditions, and this is a major change for us. We are working on this. Looking at Primary Metal, again, the organization continued to deliver the improvements. Hilde Aasheim and her people delivered the $300 Program in the end of the year, again showing that we have kept the momentum through the whole period.
In fact, we have stood here and reported 16 consecutive quarters the status of the $300 Program, and we now delivered on that in the end of the Q4 . This means that we have improved our competitive situation. If you look at our cash primary cash costs and margins, we have definitely improved. Even if you look at the situation 2013 from 2012, where we had in 2012, $2,080 per ton average LME. In 2013, we had $1,902. We have increased the EBITDA margin from $300 per ton to $400 per ton. In a weaker market, we have improved our EBITDA margin. This is of course also thanks to improved currency.
It's lower alumina price due to the fact that there's lower aluminum price, and also the fact that we have now improved our margins in the cast houses. That means the metal products premiums has also contributed favorable on this one. We have also introduced a joint venture improvement program, $180 per ton. That is going to be delivered in the end of 2016. We delivered $75 per ton on this program in 2013. We're also moving forward with our joint ventures in Primary Metal. If you then take a look at Downstream and Q4 compared to Q3 , it was in total for all products, 3% less sales volumes.
Very much impacted by lower sales of beverage cans, which is quite natural when the temperature is low, there's less demand for beverage cans. In litho and automotive, we saw improvement in automotive. Litho quite stable. General engineering, 4% improvement from the Q3 . If you then take a look at the Q4 , or the 2013 versus 2012, we have improvement in can. Stable in foil. Somewhat down in litho, but improvement in automotive. Also, 8% higher sales in general engineering. In total, 4% higher sales in 2013 compared to 2012 in Rolled Products. In our joint venture, Sapa, we continue the restructuring efforts. With regard to the market situation, we see improvements in U.S.
Improved demand, especially in automotive and also building, which is quite important market there. Industrial and transport was more stable in the U.S. market. I would say the development in U.S. is very positive in Sapa. The European market is more challenging. Again, the automotive is driving the demand. That is good, but we also have some weaknesses in building and construction, especially in Southern Europe. That is still a very weak building and construction market. Again, we are following a tight agenda with regard to synergies and restructuring, and we are moving according to plan. If you take a look at energy, we started the quarter below a 10-year average reservoir levels.
With the heavy rain in December in our areas, high precipitation, we ended up higher than the 10-year average. If you take a look at the price development, it was very stable throughout the whole year, I would say. Less volatility than normal on prices. We ended up with the average price a bit below 30 EUR per ton. That means 300 NOK per MWh in energy. Again, it's in the end of the quarter, the price was impacted by higher reservoir levels, more precipitation, and also warmer weather. With this, I leave the floor to CFO Eivind Kallevik, please.
Thank you, Svein Richard Brandtzæg. Good morning, everyone, and thank you all for joining us on this Q4 result presentation. We have no special reporting issues this quarter, so I suggest we just dive straight into the figures. The underlying result before financial items and tax in this quarter increased for Primary Metal as well as for Metal Markets, while it declined somewhat for the other business areas, giving us a result of NOK 483 million, down NOK 176 million compared to Q4 in 2013. From an overall perspective, the quarter has been impacted by the increased alumina production that we've seen in Alunorte. That has resulted in lower third-party sourcing of alumina in that quarter, thus reducing sourcing costs and improving the margins.
We've also had a positive booking on the insurance case in Qatalum relating to the business interruption situation we had back in 2012 of roughly NOK 150 million. This 150 million principally has been offset by the increased ICMS charges in Brazil of NOK 170 million. We see relatively normal seasonal effects in all downstream operations also, as Svein Richard Brandtzæg referred to. The third major or the last major item is really related to energy coming down somewhat on production compared to the historical high levels that we saw in the Q3 . Let me also on this slide give you some comments on the line called Other and Eliminations.
In this quarter, we had a result of negative NOK 306 million, quite the weakening from the negative NOK 87 million we had in the Q3 . Our share of the Sapa joint venture comes into this line, and our share of the result this quarter is negative NOK 140 million. The result for the third quarter for the Sapa joint venture, which only included September, was positive NOK 10 million. The variance is NOK 150 million between the quarters. The other quarter-over-quarter changes primarily relates to changes in eliminations of internal gains and losses on inventories, as well as somewhat higher seasonal costs on the corporate side.
Adjusting for the internal gains and losses, and Sapa, the result is about NOK 135 million negative for common services and other businesses, for this period. Somewhat higher than Q3, but very much in line with the guidance that we have given of roughly NOK 150 million in this area. If we look at the high level, quarterly result development, the Q3 was NOK 700 million. Compared to that, we have a NOK 300 million positive development on volumes and margins. That is primarily driven by the positive development we see in B&A, NOK 200 million up driven by volumes, and also the lower sourcing costs having a positive impact on margins in that area.
The other major contributor is the positive results in Metal Markets, roughly NOK 100 million, and then there are some smaller effects in the other business areas. Energy volume and price, down NOK 100 million. We have NOK 163 million negative development coming from lower production. We have 584 gigawatt hours lower production in Q4 than we had in Q3. This is partly offset by the increase in prices, roughly 20 NOK per megawatt hour on average increase between the quarters. Fixed and variable costs increased by NOK 200 million, partly reflecting seasonal costs in metals, and also somewhat higher seasonal maintenance costs in Rolled Products as expected. Finally, there is Sapa and other, also NOK 200 million negative.
In that column, you find the positive gain on the Qatalum insurance offset by the ICMS charge that we commented upon of NOK 170 million in Brazil, basically leaving the negative change to the Sapa effects of NOK 140-NOK 150 million between the quarters and changes in internal gains and losses on inventories. On key financials, we see that revenues are up roughly NOK 0.4 billion or 3% between the quarters. Again, it's driven by the increased volumes in B&A, offset by the somewhat lower volumes or lower prices in the other areas. This gives us, as I said, an underlying income of NOK 483 million for the quarter, down from NOK 659 million in the previous quarter.
This quarter, we have excluded NOK 485 million from our earnings to get to the underlying result. If we back this out, we see that the reported EBIT for this period is NOK 3 million negative or basically break even. I will get back to the underlying items in more detail on a later slide. We had a negative financial income or expense in this quarter of NOK 766 million. This mostly relates to unrealized currency losses on our intercompany euro positions as well as our US dollar debt. The loss before tax then becomes NOK 769 million. The calculated tax effect on that is NOK 11 million positive. The positive gain that we get on the currency losses is basically offset by the power surtax that we get within the energy area.
From an overall perspective, we have an underlying positive net income of NOK 140 million for the period. If we take a quick look at the year, we see that we have about NOK 0.7 billion increase in revenues. This is mainly due to higher energy prices, partly offset by lower metal and alumina prices. The underlying EBIT improved by NOK 1.4 billion due to substantially lower costs within the metal area, improved results in Qatalum, and also the improved product premiums that we've seen between the years. This, of course, was partly offset by the results in Bauxite & Alumina, driven primarily from the operational disruptions that we saw during the year. Also on currency, we see that there is a significant expense for the year, NOK 2.5 billion.
That also primarily relates to the strengthening of the US dollar versus NOK and the strengthening of the euro versus NOK. This gives us a net income of negative NOK 800 million, roughly, an improvement of half a billion compared to 2012 on a reported basis, while the underlying net income was approximately NOK 1.6 billion, an improvement of roughly NOK 1.2 billion compared to the year before. Net financials, as I mentioned, negative NOK 766 million compared to NOK 246 million for the previous quarter. These are by and large driven by unrealized currency losses, driven by the strengthening of the US dollar versus NOK. Those when translated into Norwegian kroner on a balance sheet, we have an unrealized loss on this.
Basically, the same effect on the euro, strengthening euro against the NOK affects our intercompany balances, where our subsidiaries place euros with the parent company. All other effects between the quarters are fairly stable. As mentioned before in the previous quarters, we do exclude certain elements from when we do discuss our underlying results to give a better understanding of what we believe is the actual underlying business and performance. This quarter, we have excluded NOK 485 million from the underlying result, versus NOK 62 million in the previous quarter. Now in this quarter, we only see small effects on power and raw material contracts of NOK 14 million. This is primarily driven by increased value of the stocost contract, driven by lower aluminum prices and lower coal prices between the periods. Second line, unrealized effects on LME related contracts.
This quarter, we've had mostly long contracts due to customer pricing out in time, and then in a decreasing LME environment, we do realize a loss here. Third line is the metal effect of NOK -87 million for the quarter. This is also again due to the lower LME prices on sales reflected in revenues compared to what was reflected in cost through inventories in the quarter. Also a normal effect on this line. The fourth line, though, is rationalization charges and closure costs, which in this quarter is a noteworthy NOK 324 million. This relates for all practical purposes to the Vækerø office complex.
The value of the lease contracts that Hydro has together with what we have as subleases and at this complex is no less than what we have to pay to the Hydro pension scheme, which is the owner of the premises. Based on the estimation of future lease income and lease costs, we have then calculated an estimated loss on these leases for this period, booked as an onerous contract for this quarter. For the same reason, we have taken NOK 80 million as an impairment charge on equipment related to these buildings. All in all, close to NOK 400 million related to the Vækerø complex this quarter. The other effects of NOK 311 million positive that we have backed out, basically three major items.
First is the penalties related to the ICMS tax that we have talked about in Brazil, roughly NOK 110 million. Second item relates to pension. Due to the fact that we have moved from defined benefit to defined contribution plans in Norway has led to a curtailment gain for accounting purposes of NOK 400 million, which we also back out on this line. The last piece of this is also related to the Qatalum insurance. The property damage part of that insurance claim or settlement is backed out, and that is roughly NOK 30 million. Last line is NOK 172 million, reflecting the restructuring cost in Sapa. That project is moving according to plan. Again, significant items this quarter. If we move to the business areas, start with Bauxite & Alumina.
We did deliver a negative NOK 379 million EBIT, which is basically sideways compared to Q3. From a production perspective, we have seen roughly 10% improvement in production, as the efforts to recoup and recover Alunorte refinery is going according to plan. As Svein-Richard mentioned, we ended the quarter on quite higher production than what we started with it. This resulted in lower sourced alumina from third parties, which then affected results quite positively. In addition, the increased production at Alunorte has also lifted the bauxite production at Paragominas. The production of bauxite is up roughly 40% between the quarter, quarters. You also have to remember that in Q3, we also had outages at Paragominas due to the installation of the second pump station.
However, all these positive developments has been offset by the ICMS charge of NOK 170 million, as we have mentioned before. Looking into first quarter, it is really about stabilizing the production at the speed that we've seen, at the end of fourth quarter and so far into first. I would also just like to remind you that there will be the ICMS charge, as we told you in the press release on fuel oil. The effect is NOK 150 million per quarter. It starts on February 1, so the effect of the first quarter is 100. Ongoing, there is an additional charge on electricity of about NOK 20 million. You saw a decrease of approximately $20 per metric ton of alumina, aluminum.
This was basically offset by the strengthening of the dollar versus NOK. Premiums are marginally down compared to Q3, reflecting the dip that Q3 was seasonally low, and there was also some more maintenance activity in Q4 compared to reductions in alumina prices. Settlement of NOK 150 million. So if you exclude that, the result between the periods are relatively flat. Slightly lower LME prices compared to Q4 2012, while the result is meaning that there is an underlying improvement of NOK 280 million. Roughly half of that can be contributed to the. Looking into Q1, we have priced about 50% of the production at $1,770 per metric ton. And that of course excludes Qatalum as Norway, Nor, as normal. Starting 2014, January first. That has a quarterly impact of roughly seven.
On Qatalum, it's from 70 to 150 is the insurance. Adjusting for that, there is positive developments from a profitability perspective also in Qatalum. FX and inventory valuation gain, the result is NOK 144 million, still up from NOK 71 million in Q3. Quickly improved results within our sourcing and trading activities. Results in this business areas may be volatile due to the current situation from NOK 182 million in the Q3 . We saw a 3% decline in shipments driven by seasonality and underlying EBIT. This increase is driven primarily by improved margins. Looking forward, we, as normal in Q1, we expect higher sales compared. As I mentioned, the underlying EBIT is down roughly NOK 102 million compared to third. Sales is down NOK 584 million.
Two-thirds of our production is situated. If we look into Q1, we have a relatively good reservoir levels should lead to higher production in Q1 than what you've seen in Q4. So far in this quarter, the prices is approximately 5% lower than what we saw in Q4. On Sapa, as you know, this is the first full quarter where we include 50% of our share of the net income from the Sapa joint venture in the line called Other and Eliminations. This reflects impairment of inventories driven primarily by the U.S. as well as precision tubing volumes. Europe continues to be the weak part. Cash development between the quarters.
We started the quarter with half a billion NOK of net debt. In this period, we generated underlying EBITDA of NOK 1.6 billion. We indicate a positive effect primarily driven by reduced receivables in B&A and Rolled Products and tax items. This gives us a net cash from operations of roughly two and a half billion NOK, in line with the guidance that we've given of roughly NOK 3 billion. There are some within the EBITDA figures. Leaving us with a net cash position of NOK 0.7 billion at the end of the quarter, a positive development of NOK 1.2 billion between the Q2 . At Capital Markets Day, we said that we are as a company basically cash neutral at around $1,900 LME before currency translations and operating capital.
Now when we've concluded Q4, we can see that that actually holds true. We started the year with NOK 1.7 billion in cash. We generated NOK 7.1 billion in EBITDA. There are some other adjustments, tax, and backing up non-cash items. On this slide, you see investments of NOK 2.5 billion. That is somewhat below what I said as NOK 2.9 on the previous slide. The reason is that we also sold some smaller activities driving this one down NOK 400 million in the quarter. NOK 2 billion dividends, NOK 1.5 billion, of course, is servicing the shareholders of Hydro. The other half is basically the adjustments for minorities, that's on some of the joint ventures that we do have.
Basically leaving us at the end of the year with NOK 1.8 billion in cash, after servicing shareholders, but before operating capital changes and currency translations. Same level as of 2013 as we had in 2013. There is an increased net pension liability for this period, which I would just like to comment briefly on. The projected benefit obligation is up NOK 1.6 billion between 2012 and 2013. This is, of course, the result of introducing the new mortality table K2013, that has a negative effect of roughly NOK 1.5 billion. Offsetting that is the fact that I mentioned that we've transferred from defined benefit to defined contribution plan. That has a positive effect of roughly NOK 400 million.
Offsetting that is currency translation effects on the German pension plans. So altogether amounting to NOK 1.6 billion on the projected benefit obligations. The value of plan assets has also increased in this period, driven mainly by increased return on assets. The effect of this is roughly NOK 1 billion. The pension cost is estimated to be approximately the same level in 2014 as it has been in 2013. As Svein Richard Brandtzæg mentioned already, the board proposes a dividend of 0.75 NOK per share for the year 2013. It does reflect the strong financial position that this company is in, but it's also taking into consideration the also uncertain market outlook that we still have.
If you look at the underlying earnings, the payout ratio is roughly 115%. If we look at the five-year average, we are at roughly 90%, on reported earnings. The dividend policy, of course, is, as we communicated before, roughly 30% ratio over the cycle. The high payout ratio now reflects the difficult and challenging market conditions that we've been through. The dividend, also for 2013 reflects roughly NOK 1.5 billion to be paid out in May after the general meeting on May 7.
Thank you, Eivind. If you sum up, 2013, it was another year with the challenging markets, with the low returns for the industry players. We responded with the dedicated improvement programs and delivered on the $300 program, which contributed on the bottom line with NOK 1.5 billion improvements compared to 2009. That doesn't mean that we are finished with the improvements in the fully owned smelters. That will continue. We also continue with other programs with the joint venture, B&A, Bauxite & Alumina, and also in the Rolled Products. In addition to that, the corporate center. Qatalum is continuously delivering good results, volumes above nameplate capacity. It is among the best smelters in the world. We improved the position in the first decile.
This is really on the top level in the world, and we continue to improve also in Qatalum. For this year, it is important for us now to stabilize the production in Brazil. Alunorte production close to 6 million tons, make the plant robust and sustainable over time at these levels. That is the top priority, but also then to deliver on the improvement programs in Brazil, in addition to the other improvement programs. That will be a top priority for us in 2014. We see there are market opportunities, somewhat higher demand than production entering 2014. All in all, we are cautiously optimistic about the development for this year. Thank you very much.
Okay. We open for questions from the audience. There will be a microphone for you, and please introduce yourself for the people on webcast. Any questions? We have a question from Rickert.
We have a question from Owen Scarrott of Goldman Sachs. Please, can you comment on how cost saving initiatives are progressing with JV assets? Is there potential for cost savings above those outlined in Capital Markets Day?
Okay, with regard to the JVs, we have introduced the program of $180 per ton improvements that should be delivered by the end of 2016. The status so far is that we are on track, on plan, and we delivered $75 per ton improvements by the end of 2013. So far, we keep the $180 program. We are, as I mentioned, on track for that.
I have more questions from the webcast. We can take one from Neil Sampat of Nomura. Since the new year, have you already seen an upward momentum to the metal premium you're realizing in negotiation with customers following the spike in market ingot premium?
We are, of course, not producing mainly standard ingots. Due to the fact that standard ingot premiums has spiked and got to record high level, that is also influencing our main products, which is metal products, like primary foundry alloys, extrusion ingots, and sheet ingots. Sheet ingots are directly priced on top of the standard ingot premium. Sheet ingot is priced on LME, plus the standard ingot premium, plus a conversion premium for sheet ingot. That goes directly through. Extrusion ingots are priced on LME, plus extrusion ingot premium, and the same is valid for PFA. What we have seen recently is that we also have record high premiums for extrusion ingots and also for primary foundry alloys.
Any more questions from here or do you want to do the webcast?
We'll take a last question from the webcast.
Okay.
It's from Christian Kopfer of Nordea. Approximately how much of the alumina sales are exposed to spot prices versus contracts in 2014? The of the net sales is exposed to the index pricing.
Okay. Are there any other questions from here? No? I would just like to say thank you very much for joining us today and see you next time. Thank you.