OSLO, Norway, April 28, 2003 (PRIMEZONE) -- Norsk Hydro (NYSE:NHY):
Consolidated Results (US GAAP) (unaudited) First Quarter Year 2003 2003 2002 2002 Million, except per share data NOK EUR1) NOK NOK Operating revenues 44,814 5,660 37,766 167,040 Operating income 6,772 855 4,823 19,841 Non-consolidated investees 277 35 108 33 Interest income and other financial income 424 54 586 1,418 Other income, net 40 5 77 219 Earnings before interest expense and taxes (EBIT) 7,513 949 5,594 21,511 Interest expense and foreign exchange gain/(loss) (1,059) (134) (832) 517 Income before taxes and minority interest 6,454 815 4,762 22,028 Income tax expense (4,274) (540) (2,634) (13,278) Minority interest 21 3 4 15 Income before cumulative effect of change in accounting principle 2,201 278 2,132 8,765 Cumulative effect of change in accounting principle 281 35 - - Net income 2,482 313 2,132 8,765 Earnings per share before change in accounting principle (in NOK and Euro) 8.50 1.10 8.30 34.00 Earnings per share (in NOK and Euro) 9.60 1.20 8.30 34.00 Financial data EBITDA2) - million 11,164 1,410 8,588 35,658 Investments - million 4,810 608 26,403 45,716 Net interest-bearing debt/equity3) 0.34 0.34 0.49 0.44
1) Presentation in EURO is a convenience translation based on the exchange rate at March 31, 2003, which was 7.9176
2) EBITDA: Earnings before Interest, Tax, Depreciation and Amortization
3) Net interest-bearing debt divided by shareholders' equity plus minority interest.
Norsk Hydro's net income in the first quarter of 2003 was NOK 2,482 million (NOK 9.60 per share), an increase from NOK 2,132 million (NOK 8.30 per share) in 2002. Net income included a positive effect to the change in accounting principle of NOK 281 million (NOK 1.10 per share).
"The first quarter of the year has been a period of continued improvements in operations in our three core areas. I would particularly like to highlight the strong development in Oil and Energy, where new oil and gas production records have been set, at the same time prices have been high. The extensive improvement programs in the aluminium operation are on schedule, and Hydro Agri has produced good results despite high energy costs and unfavorable development in foreign exchange rates. Good cash earnings further strengthen the company's financial position. We will continue to maintain high pressure on internal improvement programs and stringent capital discipline," said President and CEO, Eivind Reiten.
Hydro's oil and gas production in the first quarter of 2003 reached an average of 552,000 barrels of oil equivalents per day (boed), with particularly high gas sales due to low temperatures on the European Continent. The development of the Grane oil field made highly satisfactory progress, and the field is expected to start production in October 2003. Thus far, the oil and gas production target for 2003 of an average of 510,000 boed is being maintained.
The improved results in Aluminium were mainly due to new activities following the acquisition of VAW and Technal in the first quarter of 2002. The markets remain weak, with margins for finished products under pressure. The strong Norwegian kroner, particularly in relation to the US dollar, continues to remain a challenge to Norwegian aluminium operations. The improvement programs are proceeding according to plan, and sharp focus will be directed during the year to ensuring that the targets are met despite the difficult market situation.
Hydro Agri continues to produce good results, although improved market conditions did not fully compensate for negative currency effects and high energy costs. Agri further strengthened its competitive position during the first quarter of 2003, principally through increasing its market share in Europe.
Provisions for tax amounted to NOK 4,274 million in the first quarter of 2003. This was equivalent to 66 percent of pre-tax income.
First quarter 2003 Non-cons.inv., Operating Interest & Depreciation income selected fin. Other and NOK million (loss) items income amortization EBITDA Hydro Oil and 6,175 108 - 2,385 8,668 Energy Hydro 653 128 - 791 1,572 Aluminium Hydro Agri 807 133 - 262 1,202 Other (5) 31 23 211 260 Activities Corporate and Eliminations (858) 301 17 2 (538) Total 6,772 701 40 3,651 11,164
Further information about Norsk Hydro ASA and the company's first quarter results 2003 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 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 (www.hydro.com).
Norsk Hydro ASA Bygdoey alle 2 N-0240 Oslo Norway Telephone: (+47) 22 53 81 00 Fax: (+47) 22 53 27 25 www.hydro.com