Norsk Hydro Second Quarter 2004
July 19 2004 - 4:27AM
PR Newswire (US)
Norsk Hydro Second Quarter 2004 OSLO, Norway, July 19
/PRNewswire-FirstCall/ -- Oslo (2004-07-19): Consolidated Results
(US GAAP) (unaudited) Second quarter First half 2004 2003 2004 2003
Million, except per share data NOK NOK NOK NOK Operating revenues
38,250 31,354 77,848 67,117 Operating income 8,290 3,989 17,566
9,971 Non-consolidated investees 121 246 252 433 Financial income
(expense), net (447) 152 (1,071) (499) Other income (loss), net --
(1,881) 110 (1,881) Income from continuing operations before tax
and minority interest 7,964 2,506 16,857 8,024 Income tax expense
(5,605) (735) (11,391) (4,711) Minority interest (135) 38 (107) 66
Income from continuing operations 2,224 1,809 5,359 3,379 Income
from discontinued operations -- 515 1,083 1,146 Income before
cumulative effect of change in accounting principle 2,224 2,324
6,442 4,525 Cumulative effect of change in accounting principle --
-- -- 281 Net income 2,224 2,324 6,442 4,806 Earnings per share
from continuing operations (in NOK and Euro) 8.70 7.00 21.00 13.10
Earnings per share before change in accounting principle (in NOK
and Euro) 8.70 9.00 25.20 17.50 Financial data EBITDA(2) - million
12,266 8,197 25,812 18,132 Investments - million 3,925 4,023 8,701
8,692 Net interest-bearing debt/equity (3) 0.20 0.48 0.20 0.48 2)
EBITDA: Earnings Before Interest, Tax, Depreciation and
Amortization. 3) Net interest-bearing debt divided by shareholders'
equity plus minority interest, adjusted for unfunded pension
obligation (after tax) and present value of future obligations on
operating leases. All comparative figures are for the corresponding
period in 2003 unless otherwise stated. Certain amounts in
previously issued consolidated financial statements were
reclassified to conform with the 2004 presentation. Hydro's income
from continuing operations in the second quarter of 2004 was NOK
2,224 million (NOK 8.70 per share), compared with NOK 1,809 million
(NOK 7.00 per share) in the second quarter of 2003. For the first
half of 2004, Hydro's income from continuing operations was NOK
5,359 million compared with NOK 3,379 million in the first half of
2003. Hydro's agri business was transferred to Yara International
ASA in a demerger transaction completed on 24 March 2004. Results
relating to periods prior to the demerger are reported under Income
from discontinued operations. The following discussion excludes
these activities. "The second quarter marks another period with
strong results for Hydro, both in terms of financial as well as
operational performance. The results were influenced by high oil
prices and improved aluminium markets and it is encouraging that
both our main businesses delivered solid operational performance.
Oil & Energy reported a significant increase in oil and gas
production from the same period last year while Aluminium
demonstrates continued progress," said President and CEO Eivind
Reiten. "Hydro's financial results in the first six months of 2004
represent the best half-year results in our history. Our financial
position remains robust and the organization is geared toward
reaching ambitious targets and continuing to deliver value to our
shareholders," Eivind Reiten said. Operating income for the second
quarter of 2004 amounted to NOK 8,290 million compared with NOK
3,989 million in the second quarter of 2003. Both Oil & Energy
and Aluminium delivered strong results for the quarter. Operating
income for the first half of 2004 was NOK 17,566 million compared
to NOK 9,971 million in the first half of 2003. The improved
earnings in Oil & Energy were mainly due to increased
production, continued high oil prices and good cost control. The
average realized oil price was USD 34.7 per barrel in the second
quarter of 2004, compared to USD 25.5 in second quarter 2003.
Measured in NOK, the oil price was 33 percent above the
corresponding period last year. Oil and gas production in the
second quarter averaged 569,000 barrels of oil equivalents (boe)
per day, compared to 484,000 boe per day in the second quarter of
2003. For the first half of 2004, production averaged 592,000 boe
per day, an increase of 14 percent compared to the first half of
2003. The increase was mainly due to new fields coming on stream
during the second half of 2003. Aluminium operations benefited from
positive market conditions. Higher aluminium prices, higher volumes
and the effects of improvement programs contributed to improved
results. Hydro's realized price for aluminium increased from USD
1,417 per tonne in the second quarter of 2003, to USD 1,657 per
tonne in the second quarter of 2004. Measured in NOK, the realized
aluminium price improved by approximately 13 percent. Downstream
activities benefited from increased demand, leading to higher
volumes both from new capacity and improved capacity utilization.
Margins were under pressure mainly due to increased metal costs.
However, converted into NOK, margins improved slightly. Cash flow
from operations in the first half of 2004 was NOK 12.2 billion
compared to NOK 11.3 billion in the first half of 2003. Investments
in the second quarter of 2004 amounted to NOK 3.9 billion. Around
half of the amount invested related to oil and gas operations. The
provision for current and deferred taxes in the first half of 2004
was NOK 11,391 million, approximately 68 percent of pre-tax income.
Second quarter 2004 Non-cons. Operating inv., Other Depreciation
NOK million income Interest & income and EBITDA (loss) selected
amortization fin.items Hydro Oil & Energy 7,184 46 -- 2,534
9,764 Hydro Aluminium 1,269 102 -- 964 2,335 Other activities 47 49
-- 128 224 Corporate and eliminations (210) 146 -- 7 (57) Total
8,290 343 -- 3,633 12,266 First half 2004 Non-cons. Operating inv.,
Other Depreciation NOK million income Interest & income and
EBITDA (loss) selected amortization fin.items Hydro Oil &
Energy 15,002 108 -- 5,157 20,267 Hydro Aluminium 2,898 209 --
1,936 5,043 Other activities 140 195 110 259 704 Corporate and
eliminations (474) 264 -- 8 (202) Total 17,566 776 110 7,360 25,812
Outlook for the coming months Oil prices are expected to remain at
a high level for the coming months due to continued strong global
demand, capacity constraints and low stocks. Hydro's production of
oil and gas during the second half of 2004 is expected to decline
as a result of maintenance shutdowns and seasonal fluctuations in
gas volumes. Oil and gas production on the Norwegian Continental
Shelf (NSC) may also be impacted if the current labor dispute
relating to floating rigs continues for an extended period. For
Aluminium, the first half of 2004 was characterized by high volumes
and increasing aluminium prices. The growth in aluminium shipments
is expected to gradually level off as consumer inventories are
filled. The downstream activity has experienced margin pressure in
local currencies during the first half of the year, which is
expected to continue in the second half. More information regarding
Norsk Hydro ASA and the second quarter result is available on the
Internet: http://www.hydro.com/ Attachments: 2nd Quarter Report:
http://hugin.info/106/R/953195/135681.pdf 2nd Quarter Presentation:
http://hugin.info/106/R/953194/135680.pdf Certain statements in
this press release are or may constitute "forward- looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Statements that are not in the nature of
historical facts may be deemed to be forward-looking statements and
may contain identifying words such as "believes", "anticipates",
"plans", "expects" and similar expressions. These forward looking
statements are based on Hydro's current expectations, assumptions,
estimates and projections about the company and the industries in
which it engages in business. All forward-looking statements
involve risks and uncertainties. For a detailed description of
factors that could cause Hydro's actual results to differ
materially from those expressed in or implied by such statements,
please refer to its annual report on Form 20-F for the year-ended
December 31, 2002 and subsequent filings on Form 6-K with the U.S.
Securities and Exchange Commission. With respect to each non- GAAP
financial measure Hydro uses in connection with its financial
reporting and other public communications, Hydro provides a
presentation of what Hydro believes to be the most directly
comparable GAAP financial measure and a reconciliation between the
non-GAAP and GAAP measures. This information can be found in
Hydro's earnings press releases, quarterly reports and other
written communications, all of which have been posted to Hydro's
website (http://www.hydro.com/). Contact Cecilie Ditlev-Simonsen
(+47) 22 53 20 97 (+47) 41 552 50 Idar Eikrem (+47) 22 53 32 73
(+47) 95 02 83 63 Kjetil Bakken (+47) 22 53 23 13 (+47) 91 889 889
Norsk Hydro ASA Drammensveien 264 N-0240 Oslo Norway Telephone:
(+47) 22 53 81 00 Fax: (+47) 22 53 27 25 http://www.hydro.com/
DATASOURCE: Norsk Hydro CONTACT: Cecilie Ditlev-Simonsen,
+47-22-53-20-97, or +47-41-552-50, or , or Idar Eikrem,
+47-22-53-32-73, or +47-95- 02-83-63, or , or Kjetil Bakken,
+47-22-53-23-13, or +47- 91-889-889, or . all of Norsk Hydro Web
site: http://www.hydro.com/
http://hugin.info/106/R/953195/135681.pdf
http://hugin.info/106/R/953194/135680.pdf
Copyright