OSLO, Norway, Oct. 21, 2002 (PRIMEZONE) -- Norsk Hydro (NYSE:NHY), Oslo (20021021):
Consolidated Results (US GAAP)(unaudited)
Third quarter 01.0130.09 Year
2002 2002 2001 2002 2002 2001 2001
Million, except per NOK EURO NOK NOK EURO NOK NOK
share data
Operating revenues 40560 5521 36086 123301 16783 118165 152835
Operating income 3945 537 4741 13845 1884 18251 21083
Nonconsolidated (356) (48) 17 (451) (61) 301 566
investees
Interest income and
other 210 29 655 1084 148 2059 2847
financial income
Other income, net 418 219 30 597 578
Earnings before
interest 3799 517 5831 14697 2001 21208 25074
expense and taxes
(EBIT)
Interest expense
and (628) (85) (250) 294 40 (2573) (3609)
foreign exchange
gain/(loss)
Income before taxes
and minority 3171 432 5581 14991 2040 18635 21465
interest
Income tax expense (2701) (368) (4213) (9549) (1300) (12047) (13750)
Minority interest 43 6 (35) 43 6 160 177
Net income 513 70 1333 5485 746 6748 7892
Earnings per share 2.00 0.30 5.20 21.30 2.90 26.10 30.50
(in NOK and Euro)
Financial data
EBITDA million 7490 1019 9131 25203 3430 30460 37757
Investments 3712 505 3820 39767 5413 10044 16328
million
Net
interestbearing 0.43 0.43 0.24 0.43 0.43 0.24 0.28
debt/equity
Cash flow from
operations 10020 1364 9508 19784 2693 22880 26172
million
Norsk Hydro's net income in the third quarter of 2002 was NOK 513 million (NOK 2.00 per share), compared to NOK 1,333 million (NOK 5.20 per share) in the third quarter of 2001. Operating income in the third quarter of 2002 was NOK 3,945 million compared to NOK 4,741 million for the corresponding period of the prior year.
The decline in net income was principally due to higher expensing of exploration costs. In the third quarter of 2002 exploration costs amounted to approximately NOK 1.3 billion (NOK 295 million) of which a little over NOK 1.1 billion is connected to activities outside of Norway. Earnings in all of Hydro's business areas were negatively impacted by the strengthening of the Norwegian kroner and weakening of the U.S. dollar. Earnings were positively affected by higher oil prices and increased oil and gas production. However, the positive factors were largely offset by currency translation effects of oil and gas prices when measured in Norwegian kroner. Hydro Agri maintained good earnings in spite of the continued lower fertilizer prices. Hydro Aluminium's results were negatively influenced by difficult market conditions.
Hydro's net income for the first three quarters of 2002 was NOK 5,485 million (21.30 per share), compared to NOK 6,748 million (26.10 per share) for the corresponding period of previous year.
"As a whole, the earnings we are reporting for the third quarter are not satisfactory. We can be pleased about the production growth in oil and gas, but the results of our international exploration activities are disappointing. Earnings have been negatively impacted by the weak markets in our aluminium activities. The integration and improvement program in Aluminium is being carried out according to our plans and will be reinforced to help make earnings more robust during difficult market conditions. The positive developments in Hydro Agri continue, especially the growth outside of Europe remained strong in the quarter. I am satisfied that we have restored our strong financial position so soon after our acquisition of VAW and the SDFI assets. Moving forward we expect that oil and gas production will continue to develop positively. There continues to be great uncertainty related to the market development for our industrial products, especially aluminium," said President and CEO, Eivind Reiten.
Operating income for Oil and Energy was NOK 3,170 million for the third quarter of 2002, compared with NOK 4,622 million in the corresponding period of the prior year. Hydro's production of oil and gas in the third quarter of 2002 averaged 452,000 barrels of oil equivalents per day (boed), an increase of 33,000 boed compared to the third quarter of 2001. Hydro anticipates that its oil and gas production for the fourth quarter of 2002 will be approximately 500,000 boed, and therefore, has revised its 2002 average production target to 470,000 boed.
Operating income for Aluminium for the third quarter of 2002 was NOK 412 million, and has been affected by the weaker markets for processed products and a continued decline of metal prices in the third quarter of 2002.
Operating income for Agri for the third quarter of 2002 was NOK 436 million, compared with NOK 207 million in the third quarter of 2001. The result was negatively influenced by continued low international fertilizer prices. However, further reductions in fixed costs and increased sales volumes outside Europe made a positive contribution.
The provision for current and deferred taxes for the third quarter of 2002 amounted to NOK 2,701 million, approximately 85 percent of income before tax. The unusually high rate of taxation for the quarter is due primarily to a combination of high exploration costs outside of Norway, and the high marginal tax rate on earnings from oil and gas operations on the Norwegian Continental Shelf, which accounted for a considerable portion of Hydro's income before tax.
Third quarter 2002 Noncons.
inv.,
Operating Interest & Other Depreci- EBITDA
income selected Income ation
NOK million (loss) fin.items and
amorti-
zation
Hydro Oil and Energy 3170 71 -- 2210 5451
Hydro Aluminium 412 (372) -- 787 827
Hydro Agri 436 (6) -- 289 719
Other Activities 19 (58) -- 404 365
Corporate and (92) 219 -- 1 128
Eliminations
Total 3945 (146) -- 3691 7490
01.0130.09. 2002 Noncons.
inv.,
Operating Interest & Other Depreci- EBITDA
NOK million income selected income ation
(loss) fin.items and
amorti-
zation
Hydro Oil and Energy 10563 172 77 6641 17453
Hydro Aluminium 1468 (475) -- 2025 3018
Hydro Agri 1998 170 166 966 3300
Other Activities (7) (147) -- 865 711
Corporate and (177) 913 (24) 9 721
Eliminations
Total 13845 633 219 10506 25203
Further information about Norsk Hydro ASA and the company's third quarter results are available on the Internet: www.hydro.com
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 20F for the yearended December 31, 2001 and subsequent filings on Form 6K with the U.S. Securities and Exchange Commission.
To view this release in its entirety, please click the link: http://reports.huginonline.com/877455/108957.pdf