Continued pressure on prices on magnesium products from Chinese producers, has resulted in a write-down of assets related to the magnesium production in Porsgrunn, Norway, of approximately 270 million NOK. The company's Board of Directors will in addition evaluate further measures within the magnesium activities in its meeting on Friday 12th October.
In connection with a price-hedging program for Hydro Aluminium Metal for the period 2001 - 2003 additional collar options were acquired during 2000. As a consequence of the reduction in the aluminium-price (LME) these options have resulted in a loss of 340 million NOK in the third quarter.
In the Oil and Energy business area the result will be effected by an unrealised loss on oil and gas inventory, lower electricity production, extraordinary costs of repairs at Åsgard and a production outage at the Scanraff refinery. The operating income for Oil and Energy will be approximately 4.5 billion NOK.