OSLO, Norway, Feb. 10, 2003 (PRIMEZONE) -- Norsk Hydro (NYSE:NHY):
Preliminary results 2002
Consolidated Results (U.S. GAAP)
(unaudited)
Fourth quarter Year
2002 2002 2001 2002 2002 2001
Million, except per NOK EUR(1) NOK NOK EUR(1) NOK
share data
Operating revenues 39,635 5,448 34,670 162,936 22,396 152,835
Operating income 6,139 844 2,832 19,984 2,747 21,083
Non-consolidated 484 67 265 33 5 566
investees
Interest income and
other financial 334 46 788 1,418 194 2,847
income
Other income, net -- -- (19) 219 30 578
Earnings before
interest expense 6,957 957 3,866 21,654 2,976 25,074
and taxes (EBIT)
Interest expense
and foreign 223 31 (1,036) 517 71 (3,609)
exchange
gain/(loss)
Income before taxes
and minority 7,180 988 2,830 22,171 3,047 21,465
interest
Income tax expense (3,769) (518) (1,703) (13,318) (1,830) (13,750)
Minority interest (28) (4) 17 15 2 177
Net income 3,383 466 1,144 8,868 1,219 7,892
Earnings per share 13.10 1.80 4.40 34.40 4.70 30.50
(in NOK and Euro)
Financial data
EBITDA -- million 10,598 1,457 7,297 35,801 4,921 37,757
Investments -- 6,037 830 6,284 45,804 6,296 16,328
million
Net
interest-bearing 0.44 0.44 0.27 0.44 0.44 0.27
debt/equity(2)
(1) Presentation in EURO is a convenience translation based on the
exchange rate at December 31, 2002, which was 7.2754
(2) Net interest-bearing debt divided by shareholders' equity plus
minority interest.
Norsk Hydro's net income in 2002 was NOK 8,868 million (NOK 34.40 per share) compared with NOK 7,892 million (NOK 30.50 per share) in 2001.
The improvement compared to the prior year was primarily due to a significant increase in oil and gas production, more extensive aluminium operations following the acquisition of VAW in the first quarter, unrealised gains in connection with energy contracts together with unrealised gains associated with the company's debt. Lower oil and gas prices, difficult market conditions for Hydro Aluminium, and the strengthening of the Norwegian kroner negatively impacted the results.
In the fourth quarter, Hydro's net income was NOK 3,383 million (NOK 13.10 per share), compared with NOK 1,144 million (NOK 4.40 per share) for the corresponding period in 2001.
The Board proposes to the Annual General Assembly a dividend of NOK 10.50 per share for 2002, compared with NOK 10 per share in 2001.
"Hydro has achieved a return on capital in 2002 which is consistent with established targets for the year. The debt/equity ratio remains strong despite significant acquisitions, which reflects a strong cash flow throughout the year. Productivity has improved in all our business areas, particularly in the oil and gas segment, where a significant production increase has made an important contribution to the company's profitability," said President and CEO, Eivind Reiten.
"Market conditions for our aluminium operations have been difficult, while the high price of oil is a strong positive factor. There is considerable uncertainty associated with international economic development in the future. This implies a large degree of uncertainty with regards to price development for Hydro's main products. We will continue to emphasize efforts to improve Hydro's competitiveness and maintain the company's financial strengths," said Reiten.
In the fourth quarter Hydro's oil and gas production was 540,000 barrels oil equivalents (boe) per day. Production in 2002 averaged 480,000 boe per day, an increase of some 14 percent from 2001. Average production for 2003 was estimated at 510,000 boe per day. Hydro's access to new oil and gas reserves, including the purchase and sale of field licences, comprised 187 percent of its annual production. The reserve replacement ratio was 98 percent, excluding purchases and sales of licenses. Exploration results in 2002 were disappointing and NOK 3.4 billion were expensed for the year.
Aluminium operations expanded significantly in 2002 through the acquisition of the companies VAW and Technal, both of which were fully integrated parts of Hydro's business operations during the year. Efforts to realize synergies after the integration and other improvement programs continue according to plan. Market conditions for metal and value added products have been difficult. The strong Norwegian kroner have contributed significantly to a weakened competitive position for Norwegian production units. This, in combination with low aluminium prices, has resulted in weak results for these Norwegian units.
Hydro Agri has maintained its level of earnings from the previous year, despite a weak fertilizer market during most of the year, and the negative effect of changes in exchange rates and higher raw material costs. Market shares have increased in Europe and sales volume outside of Europe has increased to a level greater than sales in the European market.
During 2002, KFK divested substantial parts of its operations. In addition, Hydro signed an agreement for the sale of the Flexible Packaging unit. In total, Hydro has entered into contracts for divestments of over NOK 6 billion out of its total target for 2002-2003 of NOK 10 billion. The provision for current and deferred taxes for 2002 amounted to NOK 13,318 million, approximately 60 percent of pre-tax income.
Fourth quarter 2002
Non-cons.
Operating inv., Other Depreciation EBITDA
NOK million income Interest & income and
(loss) selected amortization
fin.items
Hydro Oil and 5,527 132 -- 2,371 8,030
Energy
Hydro Aluminium 230 385 -- 701 1,316
Hydro Agri 209 122 -- 314 645
Other Activities 20 66 -- 247 333
Corporate and 153 113 -- 8 274
Eliminations
Total 6,139 818 -- 3,641 10,598
Year 2002
Non-cons.
Operating inv., Other Depreciation EBITDA
NOK million income Interest & income and
(loss) selected amortization
fin.items
Hydro Oil and 16,090 304 77 9,012 25,483
Energy
Hydro Aluminium 1,698 (90) -- 2,726 4,334
Hydro Agri 2,207 292 166 1,280 3,945
Other Activities 13 (81) -- 1,112 1,044
Corporate and (24) 1,026 (24) 17 995
Eliminations
Total 19,984 1,451 219 14,147 35,801
Further information about Norsk Hydro ASA and the company's preliminary results 2002 are available on the Internet: www.hydro.com
For full 4th Quarter Report with tables, follow this link: http://reports.huginonline.com/890958/113143.pdf
For 4th Quarter Presentation, follow this link: http://reports.huginonline.com/890960/113144.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, 2001 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.