Første kvartal John Ottestad, CFO

Transkript

1 Første kvartal 2005 John Ottestad, CFO

2 Hovedpunkter første kvartal Høye råvarepriser God kostnadskontroll Rekordresultater Hydro Media

3 Sterke råvarepriser svak dollar Aluminiumpris LME 3m Oljepris Brent USD/tonn USD/fat 2000 NOK indeks USD 45 NOK indeks USD Hydro Media

4 Resultat fra videreført virksomhet* Per kvartal Millioner kroner Gevinster fra avhendelse Akkumulert * Etter endringer i regnskapsprinsipper i 1. kvartal 2003, som utgjorde en positiv effekt på 281 millioner kroner Hydro Media

5 Resultatregnskap Millioner kroner Driftsinntekter Driftsresultat Tilknyttede selskaper Finansinntekter (kostnader), netto Andre poster Resultat fra videreført virksomhet før skatt og minoritetsinteresser Skattekostnad Minoritetsinteresser Resultat fra videreført virksomhet Resultat fra avhendet virksomhet Resultat etter skatt Resultat per aksje fra videreført virksomhet (i kroner) Resultat per aksje fra avhendet virksomhet (i kroner) Resultat per aksje (i kroner) 1. kvartal (910) (7 283) (81) ,70 14,70 1. kvartal (624) (5 786) ,30 4,20 16,50 * For beregning avresultat per aksje, 1. kvartal 2005: aksjer, 1. kvartal 2004: aksjer Hydro Media

6 Rekordhøy kontantinntjening Resultat før rentekostnader, skatt og avskrivninger (justert EBITDA) Millioner kroner Akkumulert Hydro Media

7 Driftsresultat Per segment Millioner kroner Utforsking og Produksjon Energi og Oljemarkedsføring Elimineringer Olje & Energi Metall Valsede Produkter Extrusion og Automotive Annet og elimineringer Aluminium Øvrige virksomheter Konsernaktiviteter og elimineringer Totalt 1. kvartal (261) (36) (92) kvartal (264) Hydro Media

8 Olje & Energi driftsresultat Driftsresultat, millioner kroner Utforsking og Produksjon Energi og Oljemarkedsføring Elimineringer Olje & Energi 1. kvartal (261) kvartal Operasjonelle data Olje og gassproduksjon (1.000 foe/dag) Realisert oljepris, USD/fat Realisert oljepris, NOK/fat Realisert gasspris, NOK/Sm³ Utforsking kostnadsført, millioner kroner 1. kvartal ,4 291,7 1, kvartal ,6 218,3 1, Hydro Media

9 Aluminium driftsresultat Driftsresultat, millioner kroner Metall Valsede Produkter Extrusion og Automotive Annet og elimineringer Aluminium 1. kvartal (36) (92) kvartal Operasjonelle data Realisert aluminiumpris, USD/tonn Produksjon primæraluminium (1.000 tonn) 1. kvartal kvartal Hydro Media

10 Gjeldsgrad 0,6 0,38 0,11 0, Rentebærende gjeld + netto pensjonsforpliktelse (skattejustert) + forpliktelser relatert til leie og leasingavtaler (diskontert) kontanter og bankinnskudd andre betalingsmidler dividert med egenkapital + minoritetsinteresser Hydro Media

11 Olje &Energi hovedpunkter Rekordresultat Tre utbyggingsplaner godkjent, tre nye levert Fem utforskingsbrønner to funn Troll Olje kumulativ produksjon: 1 milliard fat Hydro Media

12 Olje & Energi driftsresultat Millioner kroner Utforsking og Produksjon Elimineringer Energi og Oljemarkedsføring Akkumulert Hydro Media

13 Petroleumproduksjon per kvartal foe/dag 615 Olje Gass Snitt Hydro Media

14 Produksjonskostnader per fat NOK/foe 23,2 22,9 23,9 20,1 19,8 25,6 21,1 21,0 24,0 22,3 19,6 17,4 17,1 Snitt vektet ,6 20,7 20, , Hydro Media

15 Oljepris drevet avtilbudssiden OPEC ledig kapasitet på lavt nivå USD/fat millioner fat/dag Kilder: Pira, Reuters, Platts OPEC ledig kapasitet Brent Brent forward Hydro Media

16 Olje & Energi utsikter Fortsatt høy oljepris Volatile energimarkeder i Europa 2005 produksjonsmål opprettholdes fat/dag 2005 maksimal produksjonskostnad opprettholdes NOK 24/fat Høy leteaktivitet Riggkapasitet sikret Hydro Media

17 Aluminium hovedpunkter Økt aluminiumpris realisert USD 1 793/tonn Aluminiumsproduksjon opp 7 prosent Godt bidrag fra forbedringsprogrammene Svakere nedstrømsmarked Hydro Media

18 Aluminium kommentarer Metaller Rekordproduksjon, Sunndal i full produksjon Aluimprover vellykket gjennomført Valsede Produkter Flatt marked i Europa Økt salg innen høymarginprodukter Reversering av tapsavsetninger, NOK 100 millioner Ekstrusion & Automotive Svakere salgsvolum Nedstengningskostnader i Leeds, NOK 174 millioner Oppstart av ny produksjonslinje for støping av motorblokker, Dillingen Hydro Media

19 Aluminium driftsresultat Millioner kroner Metall Extrusion og Automotive Valsede produkter Annet og eliminering (1 951) Akkumulert Hydro Media

20 Aluminiummarkedet Aluminiumlager (forbruk i dager) Aluminiumpris (LME 3m) USD/tonn dager Hydro Media

21 Aluminium utsikter Aluminiumprisen støttes av Lave lagre Høy kostnad på innsatsfaktorene Primæraluminium Konkurransedyktig produksjonsvekst Ekstrudering Fortsatt svak ordreinngang Valsede produker Oppstart av ny litholinje i Tyskland Hydro Media

22 Hydro prioriteringer Driftsmessige forbedringer Førsteklasses prosjektgjennomføring Bedre lønnsomhet i aluminium Styrke ressursgrunnlaget innen olje og gass Hydro Media

23 Tilleggsinformasjon

24 Adjusted income first quarter 2005 NOK million Exploration and Production Energy and Oil Marketing Eliminations Oil & Energy Metals Rolled Products Extrusion and Automotive Other and eliminations Aluminium Other activities Corporate and eliminations Total operating income 1st quarter (261) (36) (92) Adjustments (250) (91) (689) (493) Adjusted income (6) (293) Nonconsolidated investees Financial income (expense), net 213 (910) Income from continuing operations before tax and minority interest Income tax expense Minority interest Income from continuing operations (7 283) (81) (150) 318 (7 433) (81) Hydro Media

25 Infrequent and other special items impacting income statement first quarter 2005 Accounting imbalance gas portfolio Eliminations of unrealized loss on internal gas contract Rationalization cost due to Aluimprover Inventory losses Reversal contract provisions Rationalization costs Leeds closure Unrealized loss on LME contracts Marktomarket of additional power contract Elimination of unrealized gain on internal power contracts Elimination of demanning cost Net impact on operating income Nonconsolidated investees currency gain for Alunorte Financial income (expense) net net currency loss Net impact on operating income from continuing operations before tax and minority interest Energy and Oil Marketing Oil & Energy eliminations Metals Rolled Products Rolled Products Extrusion and Automotive Aluminium Other and Elimination Corporate and Eliminations Corporate and Eliminations Corporate and Eliminations Metals Hydro group NOK million (250) (100) (224) (311) (154) (493) Hydro Media

26 Adjusted income first quarter 2004 NOK million Exploration and Production Energy and Oil Marketing Eliminations Oil & Energy 1st quarter Adjustments (285) (285) Adjusted income Metals Rolled Products Extrusion and Automotive Other and eliminations (350) (19) Aluminium Other activities Corporate and eliminations Total operating income Nonconsolidated investees Financial income (expense), net Other income (loss), net Income from continuing operations before tax and minority interest Income tax expense Minority interest Income from continuing operations (264) (624) (5 786) (350) (154) (789) 8 (110) (891) 166 (725) (418) (624) (5 620) Hydro Media

27 Infrequent and other special items impacting income statement first quarter 2004 Item Gain regarding sale of Gjøa Unrealized gain on LME postitions Elimination of unrealized loss on internal power contracts Net impact on operating income Nonconsolidated investees currency gain for Alunorte Other Income Net impact on income from continuing operations before tax and minority interest Exploration and Production Aluminium, Other and Eliminations Corporate and eliminations Metals Hydro group NOK million (285) (350) (154) (789) 8 (110) (891) Hydro Media

28 Adjusted EBITDA Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Eliminations Oil & Energy Metals Rolled Products Extrusion and Automotive Other and eliminations Aluminium Other activities Corporate and eliminations Total 1st quarter (260) (91) st quarter (145) Hydro Media

29 Depreciation, depletion and amortization Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Oil & Energy Metals Rolled Products Extrusion and Automotive Aluminium Other activities Corporate and eliminations Total 1st quarter st quarter Hydro Media

30 Net financial income (expense) NOK million Interest income Dividends and net gain (loss) on securities Interest income and other financial income Interest expense Capitalized interest Net foreign exchange gain (loss) Other Interest expense and foreign exchange gain (loss) Net financial income (expense) 1st quarter (410) 165 (951) (26) (1 222) (910) 1st quarter (565) 132 (454) (39) (926) (624) Hydro Media

31 Equity in net income of nonconsolidated investees Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Oil & Energy Metals Rolled Products Extrusion and Automotive Aluminium Other activities Corporate and eliminations Total 1st quarter (5) st quarter (1) Hydro Media

32 Variance analysis Hydro group NOK million Variance adjusted EBITDA Prices and currency, Exploration and Production (E&P) Margin incl. currency effects ¹ ) Volume Fixed costs Depreciation Production and exploration costs, E&P Infrequent items Trading and unrealized LME effects, Aluminium Other Variance operating income Nonconsolidated investees Interest income and other Other income Depreciation and amortization Variance adjusted EBITDA 1st quarter (815) (285) (5) (485) (355) (110) (154) ) Including positive variance for elimination of unrealized gain/loss on electricity contracts of NOK 388 million and a negative variance for elimination of the gain/loss on gas contracts of NOK 271 million Hydro Media

33 Investments 1) Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Oil & Energy Metals Rolled Products Extrusion and Automotive Other and eliminations Aluminium Other activities Corporate and eliminations Total 1st quarter st quarter ) (1) ) Additions to property, plant and equipment (capital expenditures) plus longterm securities, intangibles, longterm advances and investments in nonconsolidated investees 2) Includes effect of change in accounting principle (FIN 46R). Noncash increase in investment of NOK million Hydro Media

34 Consolidated balance sheet NOK million Cash and cash equivalents Other liquid assets Receivables and other current assets Inventories Noncurrent assets Total assets Shortterm interestbearing debt Current portion of longterm debt Other current liabilities Longterm interestbearing debt Other longterm liabilities Deferred tax liabilities Minority interest Shareholders' equity Total liabilities and shareholders' equity Shareholders' equity per share, NOK Hydro Media

35 Statement of cash flow NOK million Operating activities: Net income Depreciation, depletion and amortization Other adjustments Net cash provided by operating activities Investing activities: Purchases of property, plant and equipment Purchases of other longterm investments Purchases of shortterm investments Proceeds from sales of property, plant and equipment Proceeds from sales of other longterm investments Proceeds from sales of shortterm investments Net cash used in investing activities Financing activities: Loan proceeds Principal repayments Ordinary shares purchased Ordinary shares issued Net cash used in financing activities Foreign currency effect on cash Net cash provided by discontinued operations Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 1st quarter (3 531) (38) (4 412) (6 517) 508 (441) (981) 15 (899) st quarter (3 297) (199) (2 845) 10 (2 956) (445) 9 (3 382) Hydro Media

36 Operating income Adjusted EBIT Adjusted EBITDA First quarter 2005 NOK million Operating income Noncons. investees Interest income Selected fin. items Other income Adj. EBIT Depr. and amort. Adj. EBITDA Exploration and Production Energy and Oil Marketing Eliminations (261) (1) (1) (261) (260) Oil & Energy (2) Metals Rolled Products Extrusion and Automotive Other and eliminations (36) (92) 116 (5) (2) (6) (91) (91) Aluminium Other activities Corporate and eliminations Total Hydro Media

37 Financial solidity calculation Amounts in NOK million 31 December December December December March 2005 [A] Cash and cash equivalents [B] Other liquid assets [C] Bank loans and other interestbearing shortterm debt (8 458) (7 306) (5 569) (3 785) (4 547) [D] Current portion of longterm debt (1 966) (1 958) (1 242) (568) (746) [E] Longterm debt (37 853) (30 902) (28 568) (19 487) (20 396) [F]=[A]+[B] +[C]+[D]+[E] Net interestbearing debt (18 708) (31 554) (18 549) [G] Net pension liabilities at fair value (2 133) (10 107) (11 973) (10 056) (10 404) [H] Expected income tax benefit 30% [I]=[G]+[H] Net pension liabilities tax adjusted (1 493) (7 075) (8 381) (7 039) (7 283) [J] Operating lease commitments discounted at 4.8% (2004: 10%) (5 072) (4 924) (4 916) (3 500) (4 062) [K]=[F]+[I] +[J] Adjusted net interestbearing debt (25 272) (43 552) (31 846) (9 043) (6 176) [L] Net pension liabilities not recognized without equity effect (2 767) (6 994) (7 862) (6 341) (6 338) [M] Expected income tax benefit 30% [N]=[L]+[M] Equity adjustment offbalance sheet pension liabilities (1 937) (4 896) (5 504) (4 439) (4 436) [O] Minority interest [P] Shareholders' equity [Q]=[N]+ [O]+[P] Adjusted shareholders equity and minority [R]=[K]/[Q] Adjusted debt / equity ratio Hydro Media

38 Net income* By quarter NOK million * Accumulated * Including the effect of change in accounting principles for 1st quarter 2003 amounting to a positive effect of NOK 281 million Hydro Media

39 Oil & Energy Adjusted EBITDA NOK million Eliminations Energy and Oil Marketing Exploration and Production Accumulated Hydro Media

40 Variance analysis Oil & Energy NOK million Variance adjusted EBITDA 1st quarter Prices and currency Oil Gas Currency (715) Margin Volume Fixed costs Depreciation Production costs Exploration costs Other Variance operating income Nonconsolidated investees Interest income and other Other income Depreciation and amortization Variance adjusted EBITDA (75) (635) (225) (60) (450) (37) (84) Hydro Media

41 Variance analysis Exploration and Production NOK million Variance adjusted EBITDA 1st quarter Prices and currency Oil Gas Currency Volume Depreciation Production costs Exploration costs Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA (715) _ (720) 75 (225) (60) (440) (37) (75) Hydro Media

42 Variance analysis Energy and Oil Marketing NOK million 1st quarter Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Other Variance operating income (10) 313 Nonconsolidated investees Interest income and other Depreciation and amortization 10 (10) Variance adjusted EBITDA Hydro Media

43 Production per field Q Boe/day (oil including NGL and condensate) Grane Oseberg Snorre Ekofisk Oseberg South Gullfaks inclu. Sat Åsgard Troll C Troll B Oseberg East Norne Visund Fram Sleipner Area Tordis Vigdis Brage Girasol Terra Nova Hibernia Kharyaga Other Oil Gas Total production Q Q Hydro share percent , /9.4/ Hydro production Hydro Media

44 Operating costs per barrel NOK/boe Q 2005 Exploration Net transportation * Other cost/income Deprec. and aband Production cost Total Million boe produced * Hydro s net cost as owner and user of transportation and processing Hydro Media

45 Exploration activity and costs NOK million Expensed share Activity Expensed old wells Cost reduction repayment Angola Capitalized share Hydro Media

46 New fields on stream Nonoperator NCS Operator NCS International Field Murzuq Kharyaga Dalia Rosa Oseberg South J Oseberg Vestflanken Oseberg East Drilling solution Fram Øst Vilje Njord gas phase Ormen Lange Kvitebjørn Visund gas phase Urd (Norne satellites) Kristin Rimfaks/Skinfaks IOR satellite project Volve Development PDO submittal Start production Hydro Plateau (boe/day) Hydro Media

47 UK gas prices NBP forward curves pence/th End of 2003 End of Q End of 2004 End of Q Hydro Media

48 Nordic power market forward curves NOK/MWh End of Q End of Q End of 2004 End of Q Hydro Media

49 Average Realized Gas Prices NOK/Sm 3 1Q 2Q 3Q 4Q Hydro Media

50 Aluminium Adjusted EBITDA NOK million Other and Eliminations Extrusion and Automotive Rolled Products Metals Accumulated Hydro Media

51 Variance analysis Aluminium NOK million Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Trading and hedging Unrealized LME effects Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 1st quarter (272) (100) (150) (155) (50) (435) 10 (288) 82 3 (69) (272) Hydro Media

52 Variance analysis Metals NOK million Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Trading & price hedging Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 1st quarter (5) (50) (3) (36) Hydro Media

53 Variance analysis Rolled Products NOK million 1st quarter Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA (125) (10) (5) 5 (22) Hydro Media

54 Variance analysis Extrusion and Automotive NOK million Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 1st quarter (225) (20) (250) (155) 5 (218) 3 1 (11) (225) Hydro Media

55 Aluminium operational data Volumes and prices Q Q Q Q Q Q Q Primary production (1 000 tonnes) * Total metal products sales excluding trading (1 000 tonnes) LME realized (USD/tonne) including hedges USD/NOK realized including hedges ** LME realized (USD/tonne) excluding hedges USD/NOK realized excluding hedges ** Rolled Products external shipment (1 000 tonnes) Extrusion and Automotive external revenues (NOK million) Extrusion order intake (indexed, 1996=100) * Full consolidation of Slovalco from 2004 ** Difference between realized exchange rate and spot rate at the transaction date is reported as currency gain/loss and not included in EBITDA (except currency hedges where hedge accounting is applied) Hydro Media

56 Inventories primary aluminium tonnes IAI (Producers' inventories) LME (London Metal Exchange) Sources: IAI and LME Hydro Media

57 Variance analysis Polymers NOK million 1st quarter Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA (40) (10) Hydro Media

58 Forwardlooking statements/ use of nongaap financial measures In order to utilize the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forwardlooking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to these items. By their nature, forwardlooking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The actual results and developments may differ materially from those expressed or implied in the forwardlooking statements due to any number of different factors. These factors include, but are not limited to, changes in costs and prices, changes in economic conditions, and changes in demand for the Company's products. Additional information, including information on factors which may affect Hydro's business, is contained in the Company's 2004 Annual Report on Form 20F filed with the U.S. Securities and Exchange Commission. With respect to each nongaap 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 nongaap 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 ( Hydro Media

59 Hydro Media