Første kvartal 2007

Transkript

1 Første kvartal

2 Hovedpunkter første kvartal Sterke resultater innen Aluminium Metal og Olje & Energi Kraftig resultatforbedring for Aluminium Products Fortsatt gode markedsforhold Ormen Lange/Langeled i rute Sammenslåingen av olje- og gassvirksomheten med Statoil forventes gjennomført 1. oktober 2

3 Resultat fra videreført virksomhet Per kvartal Millioner kroner US GoM nedskrivning Gevinst fra avhendelser US GAAP Akkumulert US GAAP IFRS 2005 US GAAP IFRS IFRS

4 Resultatregnskap Millioner kroner 1. kvartal kvartal kvartal 2006 Driftsinntekter Andel resultat i tilknyttede selskaper Andre inntekter, netto Sum inntekter Avskrivninger og nedskrivninger Andre kostnader (4 703) (30 588) (8 425) (32 198) (4 131) (32 613) Resultat før finansposter og skatt Finansinntekter (-kostnader), netto 753 Resultat før skatt Skattekostnad Minoritetsandel av resultat (9 982) (103) (5 529) (8) Årets resultat etter minoritetsandel (12 751) 77 Resultat per aksje, majoritetens andel 4,50 2,70 3,90 For beregning av resultat per aksje, 1. kvartal 2007: , 4. kvartal 2006: , 1. kvartal 2006: aksjer. 4

5 Resultat før finansposter og skatt (EBIT) Millioner kroner 1. kvartal kvartal kvartal 2006 Utforsking og Produksjon Energi og Oljemarkedsføring Elimineringer (290) Olje & Energi Aluminium Metal Aluminium Products Øvrige virksomheter Konsernaktiviteter og elimineringer (365) 899 (481) 736 (2 119) Sum

6 Resultat før finansposter skatt og avskrivninger (EBITDA) Millioner kroner US GAAP US GAAP Akkumulert IFRS IFRS 6

7 Justert netto gjeldsgrad 0,50 0,31 0,23 0,11 0, kvartal 2007 US GAAP US GAAP IFRS IFRS Rentebærende gjeld + netto pensjonsforpliktelse (skattejustert) + forpliktelser relatert til leie og leasingavtaler (diskontert) kontanter og bankinnskudd markedsbaserte verdipapirer dividert med egenkapital + minoritetsinteresser. 7

8 Olje & Energi hovedpunkter Olje- og gassproduksjon foed Fire nye funn Ormen Lange/Langeled i rute 94 prosent ferdigstilt Peregrino-plan for utbygging og drift godkjent av brasilianske myndigheter Realisert oljepris 55,94 US-dollar per fat Realisert gasspris 1,90 kroner per Sm 3 8

9 Olje & Energi nøkkeltall Operasjonelle data 1. kvartal kvartal kvartal 2006 Olje- og gassproduksjon (1 000 foe/dag) Realisert oljepris, US-dollar/fat Realisert oljepris, kroner/fat Realisert gasspris, kroner/sm³ Utforsking kostnadsført, millioner kroner ,94 347,80 1, ,80 369,20 1, ,61 403,50 2, EBIT, millioner kroner 1. kvartal kvartal kvartal 2006 Utforsking og Produksjon Energi og Oljemarkedsføring Elimineringer (290) Olje & Energi

10 Olje- og gassproduksjon per kvartal foe/dag Olje Gass Gjennomsnitt

11 Produksjonskostnader per fat Kroner/foe Gassinjeksjonskostnader Produksjonskostnader eksklusive gassinjeksjon kv Produksjon i millioner foe

12 Utforskingsaktivitet 60 brønner planlagt i 2007 Ni brønner ferdigstilt i første kvartal Fire funn tre i Norge og ett i Mexicogolfen i USA Aktivitet 900 millioner kroner 12

13 Oil & Energi utsikter Produksjonsmål for 2007: foed Ormen Lange i rute Peregrino feltutvikling i rute Høy utforskingsaktivitet Sammenslåingen av olje- og gassvirksomheten med Statoil forventes gjennomført 1. oktober 13

14 Aluminium Metal hovedpunkter Beste kvartalsresultat noensinne Realisert aluminiumpris US-dollar per tonn Produksjon tonn som planlagt Høye produktpremier for støperivirksomheten i Europa 14

15 Aluminiumprisen tre måneders LME US-dollar per tonn LME (3-måneders snitt) LME forward Primæraluminium LME 1. kvartal 2007 gjennomsnitt 1. kvartal 2007 slutt 4. kvartal 2006 gjennomsnitt 4. kvartal 2006 slutt 3. kvartal 2006 gjennomsnitt 3. kvartal 2006 slutt 2. kvartal 2006 gjennomsnitt 2. kvartal 2006 slutt 1. kvartal 2006 gjennomsnitt 1. kvartal 2006 slutt USdollar/tonn Gjennomsnitt Gjennomsnitt Kilde: Reuters Ecowin / Bloomberg, ukentlig gjennomsnitt, forward kurve per 25. mai

16 Aluminium Metal EBIT Justert for spesielle effekter Millioner kroner Realisert aluminiumpris US-dollar per tonn - +7 % mot 4. kv 2006, +21 % mot 1. kv kroner per tonn - +4 % mot 4. kv 2006, +12 % mot 1. kv 2006 Primærproduksjon tonn Høyere råmaterial- og energikostnader demper effekten av prisøkning Lavere faste kostnader sammenliknet med uvanlig høyt nivå i 4. kvartal kvartal 2007 Justert EBIT Rapportert EBIT Sterke produktpremier Sterke resultater i Alunorte 16

17 Aluminium Metal utsikter Fortsatt høye aluminiumpriser 83 prosent av andrekvartalsproduksjonen solgt til US-dollar per tonn per 31. mars - Inkluderer full effekt av strategisk sikringsprogram Endelig byggebeslutning for Qatalum forventes i juli 2007 Produksjonsmål for primæraluminium i tonn - Årdals Søderberg produksjon ( tonn) stenges ned i juni

18 Aluminium Products hovedpunkter Rekordresultat - Sterkt resultat innenfor Extrusion og Rolled Products - Salg av Automotive-enhetene, netto gevinst 690 millioner kroner Magnesiumfabrikken i Canada nedstengt i mars Fortsatt restrukturering 18

19 Aluminium Products EBIT Justert for spesielle effekter Millioner kroner Rolled Products - Margin- og volumforbedringer sammenliknet med 1. kvartal og 4. kvartal 2006 Extrusion - Positiv marginutvikling, noe ned fra 4. kvartal - Stabile volumer Automotive - Svake resultater - Avhendede virksomheter (Castings) inkludert med EBIT på 79 millioner kroner 2006 Q Justert EBIT Rapportert EBIT (104) Fokus på kontantinntjening - EBITDA: millioner kroner - Investeringer: 232 millioner kroner 19

20 Aluminium Products utsikter Bygge på sterke posisjoner i Europa - Sterke markeder for Extrusion, Building Systems og Rolled Products i Europa Svake markeder i USA og for Automotive Restrukturering av portefølje fortsetter - Pressverket i Ellenville i USA stenges ned i andre kvartal 20

21 Sterke resultater for nye Hydro i første kvartal 2007 Millioner kroner Estimert EBIT Estimert EBITDA Aluminium Metal Aluminium Products Kraft Konsernaktiviteter og annet (250) (233) Sum * Spesielle poster (800) (800) Sum etter spesielle poster * * Hydro Polymers ekskludert 21

22 Hydro prioriteringer Vellykket olje- og gassintegrasjon med Statoil Lansere nye Hydro Solid drift Konkurransedyktig kapitalavkastning Førsteklasses prosjektgjennomføring av Qatalum Solid grunnlag for oppstrømsvekst 22

23 Cautionary note in relation to certain forward-looking statements Certain statements contained in this announcement constitute forward-looking information within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. In order to utilize the safe harbors within these provisions, Hydro is providing the following cautionary statement. Certain statements included within this announcement contain (and oral communications made by or on behalf of Hydro may 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, drilling activity 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 Hydro believes 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 Hydro s actual results to differ materially from those projected in a forwardlooking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to, world economic growth and other economic indicators, including rates of inflation and industrial production, trends in Hydro s key markets, and global oil and gas and aluminium supply and demand conditions. For a detailed description of factors that could cause Hydro s results to differ materially from those expressed or implied by such statements, please refer to the risk factors specified under Risk review Risk factors on page 134 of Hydro s Annual Report 2006 (including Form 20-F) and subsequent filings on Form 6-K with the US Securities and Exchange Commission. 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. 23

24 Use of non-gaap financial measures/ Cautionary note in relation to oil and gas reserves With respect to each non-gaap 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 non-gaap 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 ( The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation material, such as expected recoverable resources, that the SEC s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, SEC File No , available from us at our Corporate Headquarter: Norsk Hydro, N-0240 Oslo, Norway. You can also obtain this form from the SEC by calling SEC

25 Additional information 25

26 Conversion to IFRS Hydro will use IFRS as primary GAAP from 2007 Comparable IFRS figures for 2006 US GAAP figures for 2005 and earlier Limited impact on results - Net income US GAAP NOK 17.4 billion - IFRS NOK 17.7 billion Main differences compared with US GAAP - Presentation and classification - Pensions - Financial instruments - Property, plant and equipment Future reporting to US Securities and Exchange Commission based on IFRS with a reconciliation to US GAAP 26

27 Adjusted income Q NOK million Reported income Adjustments Adjusted income Exploration and Production Energy and Oil Marketing Eliminations (290) (1) Oil & Energy Aluminium Metal Aluminium Products Other activities Corporate and eliminations (135) (817) Total EBIT Income continuing operations before tax and minority interest Income tax expense 1) Minority interest (365) Financial income (expense), net 753 (566) (9 982) (103) (188) (9 862) (103) Net income attributable to parent (68) (191) 1) Estimated tax effect on income statement adjustments using the quarterly marginal tax rate of 64.1 %. 27

28 Special items impacting income statement Q NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration & Production 355 Unrealized (gains)/losses on gas contracts Exploration & Production 417 Unrealized (gains)/losses on gas contracts Energy and Oil Marketing 67 Unrealized (gains)/losses on power contracts Energy and Oil Marketing (22) Unrealized (gains)/losses on gas and power contracts Eliminations Oil & Energy 289 Total impact Oil & Energy Closure costs Aluminium Metal 17 Unrealized (gains)/losses on LME contracts Aluminium Metal (272) Unrealized (gains)/losses on power contracts Aluminium Metal 127 Associates/JVs - unrealized currency (gains)/losses Alunorte Aluminium Metal (41) Associates/JVs - unrealized (gains)/losses on LME contracts Alunorte Aluminium Metal (13) Associates/JVs - unrealized (gains)/losses power contracts Aluminium Metal 47 Total impact Aluminium Metal (135) Inventory (gains)/losses Rolled Products (149) Net gain on disposed business Automotive (691) Unrealized (gains)/losses on LME contracts Other and Eliminations 23 Total impact Aluminium Products (817) Unrealized (gains)/losses on power contracts in Polymers Other Activities 50 Total impact Other Activities 50 Unrealized (gains)/losses on power and NGL contracts Corporate and Eliminations 174 Total impact Corporate and Eliminations 174 Net impact on EBIT Hydro 378 Net foreign exchange (gain)/loss Hydro (566) Net impact on income before tax Hydro (188) Marginal tax rate 1) Hydro 64.1% Estimated impact on income tax expense Hydro 120 Net impact on net income attributable to parent Hydro (68) 1) Estimated tax effect on income statement adjustments using the quarterly marginal tax rate of 64.1%. 28

29 Adjusted income Q NOK million Reported income Adjustments Adjusted income Exploration and Production Energy and Oil Marketing Eliminations (144) (57) Oil & Energy Aluminium Metal Aluminium Products Other activities Corporate and eliminations (119) - (780) (376) Total EBIT (527) Financial income (expense), net 664 (529) 135 Income continuing operations before tax and minority interest Income tax expense 1) Minority interest (12 751) 77 (1 056) (11 983) 77 Net income attributable to parent (288) ) Estimated tax effect on income statement adjustments using the quarterly marginal tax rate of 72.7 %. 29

30 Special items impacting income statement Q NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration & Production 127 Unrealized (gains)/losses on gas contracts Exploration & Production 320 Unrealized (gains)/losses on gas contracts Energy and Oil Marketing (262) Unrealized (gains)/losses on power contracts Energy and Oil Marketing 118 Unrealized (gains)/losses on gas and power contracts Eliminations Oil & Energy (57) Total impact Oil & Energy 246 Closure costs Aluminium Metal 499 Unrealized (gains)/losses on LME contracts Aluminium Metal (422) Unrealized (gains)/losses on power contracts Aluminium Metal 191 Associates/JVs - unrealized currency (gains)/losses Alunorte Aluminium Metal (82) Associates/JVs - unrealized (gains)/losses on LME contracts Alunorte Aluminium Metal 24 Associates/JVs - unrealized (gains)/losses power contracts Aluminium Metal (84) Total impact Aluminium Metal 126 Inventory (gains)/losses Rolled Products (349) UK defined pension plan Rolled Products 15 UK defined pension plan Extrusion 340 UK defined pension plan Automotive 25 Unrealized (gains)/losses on LME contracts Other and Eliminations (150) Total impact Aluminium Products (119) Unrealized (gains)/losses on power and NGL contracts Corporate and Eliminations (400) Elimination of UK defined pension plan Corporate and Eliminations (380) Total impact Corporate and Eliminations (780) Net impact on EBIT Hydro (527) Net foreign exchange (gain)/loss Hydro (529) Net impact on income before tax Hydro (1 056) Marginal tax rate 1) Hydro 72.7% Estimated impact on income tax expense Hydro 768 Net impact on net income attributable to parent Hydro (288) 1) Estimated tax effect on income statement adjustments using the quarterly marginal tax rate of 72.7%. 30

31 Estimated EBIT and EBITDA for new Hydro Q Estimated EBIT Reported Special items Adjusted Aluminium Metal (135) Aluminium Products Power Corporate and other Total * (250) (817) (22) 174 (800) (76) Hydro Polymers Estimated EBITDA Reported Special items Adjusted Aluminium Metal (135) Aluminium Products Power Corporate and other Total * (233) (817) (22) 174 (800) (59) Hydro Polymers * Hydro Polymers excluded 31

32 Variance analysis Hydro NOK million Q Variance EBIT (2 047) Prices and currency -Oil -Gas -LME - Currency - Margin - Volume - Strategic hedges - Derivatives - Associates and JCE - Exploration and production costs - Other operational costs, net - Depreciation incl. Impairment - Portfolio (619) (518) (1 003) 402 (251) (261) (1 741) (28) (665) 637 Variance EBIT (2 047) 32

33 Consolidated balance sheets NOK million 31 March December March 2006 Cash and cash equivalents Short-term investments Receivables and other current assets Inventories Assets held for sale Non-current assets Total assets Short-term interest-bearing debt Other current liabilities Liabilities included in disposal groups Long-term interest-bearing debt Other long-term liabilities Deferred tax liabilities Minority interest Equity attr. to equity holders of the parent Total liabilities and equity

34 Statement of cash flows NOK million Q Q Year 2006 Operating activities: Net income Depreciation, amortization and impairment loss Other adjustments Net cash provided by operating activities Investing activities: Purchases of property, plant and equipment Purchases of other long-term investments Purchases of short-term investments Proceeds from sales of property, plant and equipment Proceeds from sales of other long-term investments Proceeds from sales of short-term investments (3 289) (915) Net cash used in investing activities (44) Financing activities: Loan proceeds Principal repayments Ordinary shares purchased Ordinary shares issued Dividend paid Net cash provided by (used in) financing activities 107 Foreign currency effect on cash and bank overdraft (43) (3 587) (632) (3 998) 3 (1 576) (1 558) (84) (2 256) (15 927) (6 197) (22 650) (31 208) 89 (1 431) (3 949) 59 (5 506) (10 738) 319 Net increase (decrease) in cash, cash equivalents and bank overdraft Cash, cash equivalents and bank overdraft reclassified to assets held for sale Cash, cash equivalents and bank overdraft at beginning of period (3 243) (47) Cash, cash equivalents and bank overdraft at end of period

35 High oil price driven by supply concerns Million bbl/day USD per bbl OPEC spare capacity Brent dated Brent forward Sources: Pira, Reuters, Platts 35

36 Oil & Energy EBIT NOK million Eliminations Energy and Oil Marketing Exploration and Production US GAAP US GAAP IFRS IFRS Accumulated

37 Average realized gas prices NOK/Sm ,97 1,90 1,85 1,79 1,73 0,99 1,03 1,01 1,06 1,10 0,98 1,07 1,20 1,47 1,31 1, Q

38 Average prices and exchange rates Oil Oil Gas 450 NOK/boe USD/boe 80 USD/boe NOK/boe NOK/USD NOK/Sm Q Q Q Q Avg Q Q Q Q , Avg Q Avg

39 Operating costs per boe NOK/boe YTD YTD excl HGoM Exploration 6,0 8,9 23,9 14,3 8,3 Net transportation 8,3 9,4 12,4 10,8 11,1 Other costs/income 0,7 3 2,7 6,9 6,9 Deprec.& aband. 46,4 48,2 83,1 63,9 52,8 Gas for injection 2,8 5,4 7,9 5,7 5,9 Prod. costs 17,9 19,9 24,3 25,1 24,2 Production million boe

40 Oil production per field Q1 Boe/day Oil and NGL/Condensate Share Hydro Q Hydro Q Grane 38.00% Oseberg incl. C 34.00% Snorre 17.77% Girasol/Jasmin 10.00% Ekofisk % Oseberg South 34.00% Troll 9.78% Åsgard 9.61% Terra Nova 15.00% Gullfaks incl. Sat 9.00% Kristin 14.00% 8 13 Fram 25.00% 7 11 US Gulf of Mexico 6 11 Visund 20.30% 2 11 Vigdis 13.28% 9 10 Hibernia 5.00% 9 6 Sleipner Area % 8 6 Tordis 13.28% 7 6 Kvitebjørn 15.00% 10 5 Kharyaga 40.00% 5 5 Norne 8.10% 7 5 Njord 20.00% 6 4 Brage 20.00% 5 4 Other fields Total oil Gas Total oil and gas

41 Gas production per field Q1 Boe/day Share Hydro Q Hydro Q Troll 9.78% Sleipner Area % Åsgard 9.61% Oseberg incl. C 34.00% Tune 40.00% US Gulf of Mexico 9 13 Kvitebjørn 15.00% 17 9 Kristin 14.00% 5 8 Gullfaks incl. Sat 9.00% 8 7 Visund 20.30% 1 6 Oseberg South 34.00% 4 5 Ekofisk % 4 4 Mikkel 10.00% 3 3 Other 8 7 Total gas Oil Total oil and gas

42 New fields on stream Start year Field name Hydro share at peak production (boed) Country Type Operator 2007 Ormen Lange Norway Gas/ Condensate Hydro Rosa Angola Oil Total Independence Hub Area Vilje US GoM Norway Gas Oil Hydro, Dominion, Anadarko Hydro Njord Gas Volve Norway Norway Gas Oil/Gas Hydro Statoil Rimfaks/Skinfaks Norway Oil/Gas Statoil Murzuk NC-186: B&H fields TBD Libya Oil Repsol 2008 Oseberg Delta Norway Oil/Gas Hydro Gimboa Angola Oil Sonangol/Hydro technical assistent Oseberg East Drilling Norway Oil Hydro Alve Norway Gas/ Condensate Statoil 2009 Tyrihans Norway Oil Statoil Tune South Norway Oil/Gas Hydro Thunder Hawk US GoM Oil/Gas Murphy 2010 Vega Norway Gas/Oil Hydro Peregrino Brazil Oil Hydro, Anadarko 42

43 Exploration activity/costs NOK million Expensed share Capitalized share Expensed Expensed old wells Refund insurance Iran Seismic Spinnaker 43

44 UK gas prices NBP forward curves Pence/th jan-06 jan-07 jan-08 jan-09 jan-10 jan-11 jan-12 End Q End Q End Q

45 Nordic power market forward curves NOK/MWh Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 End Q End Q End Q

46 Variance analysis Oil & Energy NOK million Q Variance EBIT (2 974) Prices and currency -Oil -Gas - Currency - Margin - Volume - Derivatives - Associates and JCE - Exploration and production costs - Other operational costs, net - Depreciation incl. impairment (619) (518) (1 003) 555 (192) (1 070) (23) (635) Variance EBIT (2 974) 46

47 Variance analysis Exploration and Production NOK million Q Variance EBIT (2 780) Prices and currency -Oil -Gas - Currency - Volume - Derivatives - Associates and JCE - Exploration costs - Production costs - Other operational costs, net - Depreciation incl. impairment (619) (518) (1 003) (160) (326) (1) 621 (201) 58 (632) Variance EBIT (2 780) 47

48 Variance analysis Energy and Oil Marketing NOK million Q Variance EBIT Margin - Volume - Derivatives - Associates and JCE - Other operational costs, net - Depreciation 415 (32) (258) (22) 53 (3) Variance EBIT

49 Primary aluminium production per quarter tons YTD Slovalco consolidated from Q

50 Primary aluminium market USD per tonne days Aluminium inventories (days of consumption) Aluminium price (LME 3 month)

51 Aluminium Metal hedge programs 1) program volume tonne 2) program LME price USD/tonne program (Sunndal) volume tonne 3) program (Sunndal) LME price USD/tonne program (Sunndal) LME price NOK/tonne Hedged volume in percent of primary aluminium production volume 16 % - 1) All hedges are designated as cash flow hedges of forecasted sales of primary metal production. Realized gains and losses on the hedges are recognized in earnings when the actual sales are made. All unrealized gains and losses on the hedges are booked directly to shareholders equity. 2) Volumes are spread evenly throughout the year. The hedge program is aimed at mitigating the effects of higher power prices. 3) Volumes are spread evenly throughout the year. The Sunndal hedge program was implemented in connection with the Sunndal metal plant expansion which was completed in amount is tonnes in each of the three first quarters, down to tonnes in the fourth quarter. 51

52 Aluminium operational data Volumes and prices Q Q Q Q Q Q Q Q Q Primary production (1 000 mt) LME realized (USD/mt) including hedges NOK/USD realized including hedges * LME realized (NOK/mt) including hedges LME realized (USD/mt) excluding hedges NOK/USD realized excluding hedges * LME realized (NOK/mt) excluding hedges Total metal products sales excluding trading (1 000 mt) Rolled Products external shipment (1 000 mt) Extrusion external shipment (1 000 mt) * 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). 52

53 Aluminium Metal EBIT NOK million Sourcing & Trading (S&T) Unrealized LME effects Aluminium Metal (excl. unrealized LME and S&T) Realized aluminium price - USD per tonne - +7% vs. Q4 2006, +21% vs Q NOK per tonne - +4% vs. Q4 2006, +12% vs Q Primary aluminium production mt Q4 2006, Q Higher raw material and energy costs reduce impact of price increase Fixed cost reductions compared to unusually high level in Q (113) (108) (468) Improved product premiums Accumulated Improved results in Alunorte Net positive special items NOK 135 million 53

54 Aluminium Products EBIT NOK million Rolled Products Automotive Extrusion Other and eliminations Rolled Products - Margin and volume improvement compared to both Q1 and Q Metal effect NOK 149 million in Q Extrusion - Positive margin development, somewhat down from Q4 - Volumes stable 326 (435) (481) Automotive - Weak results - Divested activities (Castings) included with EBIT of NOK 79 million - Gain on divested activities NOK 691 million Accumulated (104) Focus on cash generation in Adjusted EBITDA: NOK million - Investments: NOK 232 million 54

55 Variance analysis Aluminium Metal NOK million Q Variance EBIT Price LME - Margin - Volume - Strategic hedges - Derivatives - Associates and JCE - Other operational costs, net - Depreciation - Portfolio (286) (126) (261) (37) (25) Variance EBIT

56 Variance analysis Aluminium Products NOK million Q Variance EBIT Margin - Volume - Derivatives - Associates and JCE - Other operational costs, net - Depreciation - Portfolio 32 (86) (184) Variance EBIT

57 Variance analysis Rolled Products NOK million Q Variance EBIT (126) - Margin - Volume - Derivatives - Associates and JCE - Other operational costs, net - Depreciation - Portfolio (129) 61 (10) 11 (89) Variance EBIT (126) 57

58 Variance analysis Extrusion NOK million Q (156) Variance EBIT Margin - Volume - Associates and JCE - Other operational costs, net - Depreciation 120 (77) (1) Variance EBIT

59 Variance analysis Automotive NOK million Q (156) Variance EBIT Margin - Volume - Associates and JCE - Other operational costs, net - Depreciation 120 (77) (1) Variance EBIT

60 Variance analysis Hydro Polymers NOK million Q Variance EBIT 59 - Margin - Volume - Derivatives - Associates and JCE - Other operational costs, net - Depreciation (50) (5) (63) (13) Variance EBIT 59 60

61 Investor Relations in Hydro Ada Christiane Rieker Gudmund Isfeldt Stefan Solberg Irene Raposo Vice President Investor Relations Officer Investor Relations Officer Investor Relations Secretary t: m: e: t: m: e: t: m: e: t: m: e: For more information see: 61

62 hydro.com 62