Short summary: Prices for oil, light metals crimp 2001 earnings
(Feb. 11, 2002) Lower oil prices and weak markets affected Hydro 's financial results in 2001. Still,the result was the second-best in Hydro's history.
Net income in 2001 was NOK 7,892 million (NOK 30.50 per share) compared with NOK 13,981 million (NOK 53.40 per share) in 2000. The decline is mainly due to lower oil prices plus lower prices and margins in Light Metals. The impact of weaker markets has been most apparent during the second half of the year.
The Board of Director's proposal to the Corporate Assembly is a dividend of NOK 10.00 per share, compared with NOK 9.50 in the previous year.
The results for 2001 and 2000 include earnings gained from divestments. For 2001 these represented roughly NOK 520 million after tax (NOK 2.00 per share) and for 2000 they amounted to approximately NOK 2,800 million after tax (NOK 10.70 per share).
In the fourth quarter, net income after tax was NOK 1,144 million (NOK 4.40 per share) compared with NOK 4,859 million (NOK 18.60 per share) in the same period last year. The fourth quarter 2000 result included earnings of NOK 1,035 million after tax (NOK 4.00 per share) gained from the divestment of Hydro Seafood.
Production of oil and gas has increased. Oil production outside the Norwegian shelf increased significantly towards the end of the year, as the Girassol field in Angola came on stream and Terra Nova in Canada started up in January 2002. International exploration has gained access to important new licenses.
Aluminium reported weak results towards the end of the year, due especially to a downturn in the business cycle with low prices and margins for both metal and wrought products. The closure of magnesium production in Norway and the costs of other improvement measures also had a negative impact on the result for the last quarter. The acquisition of the French manufacturer Technal has made Hydro the world's leading company in aluminium building systems. The agreement to acquire the German company VAW will make Hydro Aluminium the leading aluminium company in Europe.
The Agri area has completed its extensive improvement program and achieved a considerably better competitive position and greater profitability. Restructuring in the European fertilizer industry has brought about a significant improvement in capacity utilization and there has been solid growth in Hydro's sales outside Europe.
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