Norsk Hydro ASA has today completed the sale of its 29.7 percent ownership interest in Qatar Vinyl Company (QVC) to Qatar Petroleum. The transaction represents net proceeds to Hydro of USD 136 million (NOK 735 million). The transaction is expected to result in a gain of approximately NOK 100 million to be recorded in the third quarter results. This completes the divestment of Hydro’s Polymers activities.
Hydro entered into an agreement to sell its Polymers activities to INEOS in late May 2007, consisting of production facilities in Norway, Sweden and the UK, and the 29.7 percent ownership interest in QVC. The sale to INEOS was completed February 1, 2008, excluding the QVC ownership interest as Qatar Petroleum exercised its pre-emptive right to acquire the QVC ownership interest.
Contact Halvor Molland
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Contact Stefan Solberg
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Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management’s plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro’s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro’s key markets and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.