Norsk Hydro on Wednesday announced several consequences for the company's third quarter results 2001.
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 NOK 270 million. The company's Board of Directors will in addition evaluate further measures within the magnesium activities in its meeting on Friday, Oct. 12.
In connection with a price-hedging program for Hydro Aluminium Metal Products 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 NOK 340 million in the third quarter.
In the Oil and Energy business area the result will be affected by an unrealized loss on oil and gas inventory, lower electricity production, extraordinary costs of repairs at the Åsgard field in the North Sea and a production outage at the Scanraff refinery in Lysekil, Sweden. Operating income for Oil and Energy will be approximately NOK 4.5 billion, according to a company announcement.