Norsk Hydro Quarterly Report 2nd quarter 2002.Business Editors OSLO, Norway--(BUSINESS WIRE)--July 22, 2002 Norsk Hydro Norsk Hydro ASA (OSE: NHY, NYSE: NHY) is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. (NYSE NYSE See: New York Stock Exchange :NHY NHY Norsk Hydro NHY Nehmé Hassan Younes ): Quarterly Report 2nd quarter 2002
CONSOLIDATED RESULTS Second quarter First half Year
(US GAAP)
2002 2002 2001 2002 2002 2001 2001
Million, except per NOK EURO(1) NOK NOK EURO(1) NOK NOK
share data
Operating revenues 44,702 6,029 40,951 82,741 11,159 82,079 152,835
Operating income 5,077 685 6,065 9,900 1,335 13,510 21,083
Non-consolidated
investees (203) (28) 83 (95) (13) 284 566
Interest income and
other financial
income 288 39 737 874 118 1,404 2,847
Other income, net 142 19 - 219 30 179 578
Earnings before
interest expense and
taxes (EBIT) 5,304 715 6,885 10,898 1,470 15,377 25,074
Interest expense and
foreign exchange
gain/(loss) 1,754 237 (1,146) 922 124 (2,323) (3,609)
Income before tax and
minority interest 7,058 952 5,739 11,820 1,594 13,054 21,465
Income tax expense (4,214) (568)(3,633)(6,848) (924)(7,834)(13,750)
Minority interest (4) (1) 74 - - 195 177
Net income 2,840 383 2,180 4,972 670 5,415 7,892
Earning per share (in
NOK and Euro) 11.00 1.50 8.40 19.30 2.60 20.90 30.50
Financial data
EBITDA - million 9,125 1,231 9,970 17,713 2,389 21,329 37,757
Investments - million 9,652 1,302 3,310 36,055 4,863 6,224 16,328
Net to interest-
bearing
debt/equity(2) 0.48 0.48 0.35 0.48 0.48 0.35 0.28
Cash flow from
operations - million 3,415 460 3,728 9,764 1,317 13,372 26,172
1) Presentation in EURO is a convenience conversion based on the
NOK/EUR exchange rate at 30 June 2002, which was 7.4145.
2) Net interest-bearing debt divided by shareholders' equity plus
minority interest.
Norsk Hydro's net income in the second quarter of 2002 was NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2,840 million (NOK 11.00 per share), compared to NOK 2,180 million (NOK 8.40 per share) for the corresponding period of the previous year. The result is strongly impacted by foreign currency effects Foreign Currency Effects The extent to which the changes in a foreign currency affects the return on a foreign investment. Notes: Foreign investments are complicated by the currency fluctuation and conversion between countries. and includes gains primarily in connection with loans and financial derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. of NOK 2,471 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. is NOK 988 million lower than the same period of last year. Net income for the first half-year is NOK 4,792 million (19.30 per share), compared to NOK 5,415 million (20.90 per share) for the corresponding period of last year. Earnings in all business areas were negatively impacted by a weaker US dollar and a stronger Norwegian Norwegian associated in some way with Norway. Norwegian buhund, Norwegian sheepdog a medium-sized (26-40 lb), spitz-type dog with a short, dense coat in wheaten, black, red or sable, sometimes with black markings on the face, ears krone. The effect of the weaker US dollar was particularly noticeable towards the end of the second quarter. The US dollar weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. by 17 percent over the first half-year
and by 15 percent in the second quarter alone. An unchanged exchange
rate will negatively affect future earnings from operating activities."I consider these results satisfactory given current market conditions. It is pleasing to report that internal improvement processes have brought results in the form of lower costs, and that our financial position is still strong at a time of continued uncertainty regarding global economic developments. Our aluminium operation has successfully completed the integration of the acquired companies VAW and Technal. There has been considerable growth in oil and gas production, but it is disappointing that exploration has not increased our resources in any substantial way. Our results to come will be negatively influenced by recent foreign exchange movements, and I do not envisage en·vis·age tr.v. en·vis·aged, en·vis·ag·ing, en·vis·ag·es 1. To conceive an image or a picture of, especially as a future possibility: envisaged a world at peace. 2. that current market conditions will improve substantially. This underlines the necessity for us to continue placing considerable emphasis on Hydro's improvement processes and strengthening our market positions," says President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Eivind Reiten Eivind Kristofer Reiten (b. 1953) is a Norwegian corporate officer and a politician for the Centre Party. Since 2001 he was the Director General of Norsk Hydro. Eivind Reiten resigned from his position after accusations of corruption. . Hydro has in the second quarter achieved a record high production of oil and gas. The increase is largely due to new fields coming on stream and to the acquisition of former SDFI SDFI Secure Digital Forensic Imaging ( State Direct Financial Interest) assets on Norwegian fields. Exploration costs amounting to NOK 936 million have been charged to the accounts for the second quarter, compared with NOK 365 million in the same period of the previous year. Second quarter 2002 results for Hydro Aluminium include the VAW and Technal operations, both of which were acquired by Hydro in the course of the first quarter. The increased activity resulting from these acquisitions has contributed to the improved results for this business area. Lower aluminium prices, especially when expressed in Norwegian kroner, have weakened the result. The result for Hydro Agri, when adjusted for non-recurring effects, declined in both the second quarter and the first half compared to the corresponding periods in 2001, due particularly to low ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. and urea prices. Results for the first half of 2002 include a NOK 6,848 accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for income tax expense. This represents approximately 58 percent of income before taxes. During the first half of 2001, income tax expense represented approximately 60 percent of income before taxes and minority interest.
SECOND QUARTER 2002
Non-cons. inv.,
interest Depreciation
Operating & selected &
NOK million income fin. items Other amort- EBITDA
(loss) income ization
Hydro Oil and Energy 3,686 64 - 2,405 6,155
Hydro Aluminium 711 (198) - 779 1,292
Hydro Agri 604 51 166 377 1,198
Other Activities 68 (141) - 256 183
Corporate and Eliminations 8 309 (24) 4 297
Total 5,077 85 142 3,821 9,125
FIRST HALF 2002
Non-cons. inv.,
interest Depreciation
Operating & selected &
Million income fin. items Other amort- EBITDA
(loss) income ization
Hydro Oil and Energy 7,393 101 77 4,431 12,002
Hydro Aluminium 1,056 (103) - 1,238 2,191
Hydro Agri 1,562 176 166 677 2,581
Other Activities (26) (89) - 461 346
Corporate and
Eliminations (85) 694 (24) 8 593
Total 9,900 779 219 6,815 17,713
Further information about Norsk Hydro ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and and the second quarter results 2002 are available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : www.hydro.com |
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