Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — FY2005 Earnings Presentation
93 slides from Norsk Hydro Asa's earnings presentation, February 2006
Slide 1: Foreløpig årsresultat 2005
Foreløpig årsresultat 2005 www.hydro.com
Slide 2: Hovedpunkter 2005
Hovedpunkter 2005 z Rekordresultat z Høye energipriser og god kostnadskontroll z Suksessrikt år i utforsking z Kjøp av Spinnaker z Strategisk skift i Aluminium z Sterk finansiell stilling 2
Slide 3: Resultat fra videreført virksomhet
Resultat fra videreført virksomhet* Per kvartal Millioner kroner Gevinster fra avhendelse 4 183 4 186 3 638 3 693 3 577 3 100 3 135 2 991 2 342 2 481 2 224 2 005 1 851 1 809 1 417 241 2002 2003 2004 2005 Akkumulert 7 100 8 656 11 477 15 638 * Endring i regnskapsprinsipp i fjerde kvartal 2005 utgjord
Slide 4: Resultatregnskap
Resultatregnskap 4. kvartal 4. kvartal Millioner kroner 2005 2004 Driftsinntekter 45 318 38 769 Driftsresultat 10 450 6 234 Tilknyttede selskaper (76) 90 Finansinntekter (-kostnader), netto (579) 900 Andre poster 758 59 Resultat fra videreført virksomhet før skatt og 10 533 7 283 minoritetsinteresse
Slide 5: Resultatregnskap
Resultatregnskap Millioner kroner 2005 2004 Driftsinntekter 174 201 153 891 Driftsresultat 46 432 31 847 Tilknyttede selskaper 619 629 Finansinntekter (-kostnader), netto (1 890) 137 Andre poster 990 169 Resultat fra videreført virksomhet før skatt og 46 152 32 781 minoritetsinteresser (30 317) (21
Slide 6: Resultat før rentekostnader, skatt og avskrivninger (justert EBITDA)
Resultat før rentekostnader, skatt og avskrivninger (justert EBITDA) Millioner kroner 15 852 17 108 17 000 15 533 13 546 13 210 12 266 12 094 11 045 9 820 9 935 9 451 7 955 8 197 7 199 6 775 2002 2003 2004 2005 Akkumulert 31 749 38 628 51 117 65 493 6
Slide 7: Olje & Energi – driftsresultat
Olje & Energi – driftsresultat 4. kvartal 3. kvartal 4. kvartal Operasjonelle data 2005 2005 2004 Olje- og gassproduksjon (1 000 foe/dag) 589 541 591 Realisert oljepris, USD/fat 55,60 60,40 41,80 Realisert oljepris, NOK/fat 368,80 390,60 263,80 Realisert gasspris, NOK/Sm³ 1,85 1,36 1,20 Utforsking k
Slide 8: Aluminium – driftsresultat
Aluminium – driftsresultat 4. kvartal 3. kvartal 4. kvartal Operasjonelle data 2005 2005 2004 Realisert aluminiumpris, USD/tonn 1 851 1 770 1 678 Realisert aluminiumpris, NOK/tonn 12 383 11 550 11 175 Produksjon primæraluminium (1 000 tonn) 464 461 446 4. kvartal 3. kvartal 4. kvartal Driftsresultat
Slide 9: Driftsresultat per segment
Driftsresultat Per segment 4. kvartal 3. kvartal 4. kvartal Millioner kroner 2005 2005 2004 Utforsking og Produksjon 10 690 11 799 7 116 Energi og Oljemarkedsføring 1 403 466 1 072 Elimineringer (556) 360 433 Olje & Energi 11 537 12 625 8 621 Metall 1 132 823 (1 949) Valsede Produkter 35 182 33 Extr
Slide 10: Betydelig bedret kapitalavkastning
Betydelig bedret kapitalavkastning Return on average Capital Employed – RoaCE Justering for spesielle forhold Realisert 19,9% 16,8% 13,6% 13,0% 8,4% 7,2% 2002 2003 2004 2005 * Spesielle forhold omfatter, 2004: nedskrivinger i Aluminium og endring i skattelovgivning, 2005: nedskrivinger i Aluminium o
Slide 11: Bedret avkastning ved konstante priser
Bedret avkastning ved konstante priser Normalisert RoaCE* 9,2% 7,5-8,5% 8,2% z Forutsetninger: - Olje pris USD 25/foe - Aluminium pris USD 1 500/tonn 6,3% - NOK/USD 7,0 - NOK/EUR 8,0 - Urealiserte gevinster/tap på derivativer, gevinster/tap ved avhendelser og restruktureringskostnader kostnader er e
Slide 12: Justert netto gjeldsgrad
Justert netto gjeldsgrad 0,6 0,38 0,31 0,11 2002 2003 2004 2005 Rentebærende gjeld + netto pensjonsforpliktelse (skattejustert) + forpliktelser relatert til leie og leasingavtaler (diskontert) – kontanter og bankinnskudd – andre betalingsmidler dividert med egenkapital + minoritetsinteresser 12
Slide 13: Foreslått utbytte 22 kroner per aksje
Foreslått utbytte 22 kroner per aksje Kroner per aksje 22,0 20,0 11,0 10,5 10,0 9,5 2000 2001 2002 2003 2004 2005 13
Slide 14: Olje & Energi – hovedpunkter
Olje & Energi – hovedpunkter z Høye energipriser og god kostnadskontroll z Produksjon – 589 000 foed i fjerde kvartal z Suksessrikt år i utforsking – 14 funn i 2005 z Reserveerstatning i 2005: 85 prosent z Ormen Lange/Langeled på plan – 60 prosent ferdigstilt z Overtakelsen av Spinnaker – styrket po
Slide 15: Påviste olje og gass reserver
Påviste olje og gass reserver SEC definisjon Reserver 31.12.2004 – millioner foe 2 076 Endring av tidligere anslag 64 Nye reserver 59 Kjøp, (salg)/bytte 52 Produksjon i 2005 (206) Reserver 31.12.2005 – millioner foe 2 046 Reserveerstatning og reserveliv Reserveerstatning i 2005 85% Reserveerstatning
Slide 16: Olje & Energi – driftsresultat
Olje & Energi – driftsresultat Millioner kroner 12 625 11 537 Utforsking og Produksjon Energi og oljemarkedsføring Elimineringer 9 842 9 447 8 621 7 818 7 521 7 184 6 175 5 994 5 384 5 322 3 707 3 686 3 652 3 170 2002 2003 2004 2005 Akkumulert 15 947 21 143 31 144 43 451 16
Slide 17: Petroleumsproduksjon per kvartal
Petroleumsproduksjon per kvartal 1 000 foe/dag 615 596 591 584 589 Olje Gass 552 569 540 539 541 514 489 173 482 484 166 176 147 178 184 448 452 143 156 142 123 154 104 112 116 88 430 442 110 422 415 397 396 406 399 405 378 391 385 364 372 373 338 2002 2003 2004 2005 Akkumulert 480 530 572 563 17
Slide 18: Produksjonskostnader per fat
Produksjonskostnader per fat Kroner/foe Gassinjeksjonskostnader Produksjonskostnader ekskl. gassinjeksjon 25,3 25 22,6 5,4 0,4 20,7 20,7 20 0,7 2,8 15 22,2 10 20,0 17,9 19,9 5 0 2002 2003 2004 2005 Produksjon i millioner foe 175 194 209 206 18
Slide 19: Sterke utforskingsresultater
Sterke utforskingsresultater 14 funn i 2005* - 2 i fjerde kvartal Norge Danmark Iran Libya Mexicogolfen i USA Angola 7 Spinnaker Exploration funn i 2005 * Ekskludert funn gjort av Spinnaker Exploration 19
Slide 20: Realisere potensialet i Mexicogolfen i USA
Realisere potensialet i Mexicogolfen i USA z Produksjonsanslag for 2006 – 30 000 foed z 443 leases (blokker) – 64 prosent på dypt vann z Høy utforskingsaktivitet – 20 brønner påbegynnes i 2006 z Utbygging av dypvannsfelt – Lorien og Eastern Gulf 20
Slide 21: Feltutbygginger i Mexicogolfen i USA
Feltutbygginger i Mexicogolfen i USA Kontinentalsokkelen - Flere gassfelt Telemark - Korte gjennomføringstider Area Dypvann z Lorien - 30 prosent eierandel Lorien - Starter produksjon i april 2006 - Produksjon i 2006: 7 000 foed z Eastern Gulf Eastern Gulf - Spiderman 18,33% - San Jacinto 26,67% Lou
Slide 22: Olje & Energi – utsikter
Olje & Energi – utsikter z Fortsatt høye energipriser z 2006 produksjonsmål 615 000 foed z Høy aktivitet innenfor utforsking og forretningsutvikling - 60 utforskingsbrønner inkludert forlengelsesbrønner vil bli påbegynt i 2006 z Sterkt fokus på å realisere potensialet i Mexicogolfen z Verdiskapning
Slide 23: Aluminium – hovedpunkter
Aluminium – hovedpunkter z Produksjon av primæraluminium økte 4 prosent i forhold til fjerde kvartal 2004 z Realisert aluminiumspris USD 1 851 per tonn i fjerde kvartal 2005 z Kostnader uten kontantstrømeffekt i fjerde kvartal - Nedskrivninger på 1 238 millioner kroner - Urealiserte tap på LME deriv
Slide 24: Stigende aluminiumspris
Stigende aluminiumspris USD per tonn 2 700 LME (3 month) 2 600 LME forward USD per tonn 2 500 2 400 Q3 2005 snitt 1 846 2 300 2 200 Q3 2005 slutt 1 851 2 100 2 000 Q4 2005 snitt 2 069 1 900 1 800 Q4 2005 slutt 2 277 1 700 Gjennomsnitt 2005 1 900 1 600 1 500 Gjennomsnitt 2004 1 721 1 400 1 300 1 200
Slide 25: Tiltak for å bedre konkurranseposisjonen
Tiltak for å bedre konkurranseposisjonen Nedbemanning i 2005 Restrukturering Smelteverk* 600 Hamburg, Tyskland Aluimprover i Norge Andre 430 Raufoss, Norge Holland, USA Leeds, UK Toulouse, Frankrike Sum restrukturering 1 030 Rasjonaliseringsinitiativer i alle sektorer 670 Sum 1 700 * Ekskluderer eff
Slide 26: Utilfredsstillende resultater i nedstrømsvirksomheten
Utilfredsstillende resultater i nedstrømsvirksomheten z Valsede Produkter – Driftsresultat i fjerde kvartal: 35 millioner kroner - Standard produkter – fortsatt press på marginer - Folie – økt salg - Litografiske plater – rekordhøye salgsvolumer - Metalleffekt – positivt bidrag på 90 millioner krone
Slide 27: Aluminium – utsikter
Aluminium – utsikter z Aluminium Metal - Høy aluminiumspris - Økte energi- og råvarekostnader - Reposisjonering og restrukturering av smelterverkene fortsetter z Aluminium Products - Nytt forretningsområde med fokus på restrukturering av nedstrømsvirksomheten - Reduksjon av investeringer, fokus på k
Slide 28: Hydro – prioriteringer
Hydro – prioriteringer z Driftsmessige forbedringer z Realisere potensialet i den styrkede posisjonen i Mexicogolfen z Førsteklasses prosjektgjennomføring z Veikart for lønnsomhetsmål i Aluminium z Ytterligere styrke ressursgrunnlaget innen olje og gass 28
Slide 29: Forward-looking statements/ use of non-GAAP financial measures
Forward-looking statements/ use of non-GAAP financial measures In order to utilize the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forward-looking statements
Slide 30: Cautionary note
Cautionary note 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 exist
Slide 31: Tilleggsinformasjon
HYDRO Tilleggsinformasjon
Slide 32: Safety
Safety Total reported injuries per million working hours (TRI) Rate 15 10 5 0 2000 2001 2002 2003 2004 2005 32
Slide 33: Capital allocation 2006 - 2010
Capital allocation 2006 - 2010 Uncommitted investments and exploration expenditure Aluminium investments E&P: Committed investments 30 30 Annual investments NOK 25–30 billion 25 20 Uncommitted investments and exploration expenditure: NOK 55-80 billion 10 Aluminium: NOK 25 billion Committed E&P: NOK
Slide 34: Return on capital by business area
Return on capital by business area Return on average Capital Employed – RoaCE Oil & Energy Aluminium 32.7% Adjustment for Spinnaker Adjustment for write-downs Actual Actual 23,4% 26,2% 16,2% 11,6% 7.0% 6.0% 4,7% 2,7% 3,5% 3,4% 2002 2003 2004 2005 2002 2003 2004 2005 34
Slide 35: Normalized RoaCE by business area
Normalized RoaCE by business area Oil & Energy Aluminium Normalized Adjustment for Spinnaker Normalized Adjustment for write-downs 12.6% 12,3% 11,3% 10,0% 4,2% 4.8% 4.2% 1,7% 1,3% 2003 2004 2005 2003 2004 2005 35
Slide 36: Adjusted income fourth quarter 2005
Adjusted income fourth quarter 2005 NOK million Reported income Adjustments Adjusted income Exploration and Production 10 690 591 11 281 Energy and Oil Marketing 1 403 (383) 1 020 Eliminations (556) 558 2 Oil & Energy 11 537 766 12 303 Metals 1 132 - 1 132 Rolled Products 35 64 99 Extrusion and Auto
Slide 37: Infrequent and other special items impacting income statement fourth quarter 2005
Infrequent and other special items impacting income statement fourth quarter 2005 NOK million Unrealized losses oil and gas derivatives, Spinnaker Exploration and Production 440 Unrealized gains/losses gas contracts Exploration and Production 151 Unrealized gains/losses gas contracts Energy and Oil
Slide 38: Adjusted income – 2005
Adjusted income – 2005 NOK million Reported income Adjustments Adjusted income Exploration and Production 40 594 625 41 219 Energy and Oil Marketing 3 575 39 3 614 Eliminations (719) 740 21 Oil & Energy 43 451 1 404 44 854 Metals 3 898 6 3 904 Rolled Products 754 (123) 631 Extrusion and Automotive (
Slide 39: Infrequent and other special items impacting income statement – 2005
Infrequent and other special items impacting income statement – 2005 NOK million Unrealized losses oil and gas derivatives, Spinnaker Exploration and Production 440 Unrealized gains/losses gas contracts Exploration and Production 185 Unrealized gains/losses gas contracts Energy and Oil marketing 39
Slide 40: Adjusted income fourth quarter 2004
Adjusted income fourth quarter 2004 NOK million Reported income Adjustments Adjusted income Exploration and Production 7 116 (100) 7 016 Energy and Oil Marketing 1 072 (169) 903 Eliminations 433 (444) (11) Oil & Energy 8 621 (713) 7 908 Metals (1 949) 2 542 593 Rolled Products 33 (6) 27 Extrusion an
Slide 41: Infrequent and other special items impacting income statement fourth quarter 2004
Infrequent and other special items impacting income statement fourth quarter 2004 NOK million Gain sale Snøhvit Exploration and Production (100) Inventory gains Energy and Oil Marketing 18 Unrealized gains/losses gas contracts Energy and Oil marketing (187) Elimination of unrealized gain on internal
Slide 42: Adjusted income 2004
Adjusted income 2004 NOK million Reported income Adjustments Adjusted income Exploration and Production 28 363 (385) 27 978 Energy and Oil Marketing 2 650 (441) 2 209 Eliminations 131 (144) (13) Oil & Energy 31 144 (970) 30 174 Metals 860 2 561 3 391 Rolled Products 626 (154) 472 Extrusion and Autom
Slide 43: Infrequent and other special items impacting income statement 2004
Infrequent and other special items impacting income statement 2004 NOK million Gain on asset sales (Gjøa, Snøhvit) Exploration and Production (385) Inventory gains Energy and Oil Marketing (59) Unrealized gains/losses gas contracts Energy and Oil Marketing (382) Elimination of unrealized gain on int
Slide 44: Operating income – Adjusted EBIT – Adjusted EBITDA
Operating income – Adjusted EBIT – Adjusted EBITDA Fourth quarter 2005 Non- Selected Depr. Operating Interest Other Adjusted Adjusted NOK million income cons. income fin. income EBIT and EBITDA investees items amort. Exploration and Production 10 690 4 4 23 - 10 721 2 955 13 677 Energy and Oil Marke
Slide 45: Adjusted EBITDA
Adjusted EBITDA Individual operating segment NOK million 4th quarter 2005 4th quarter 2004 Exploration and Production 13 677 9 825 Energy and Oil Marketing 1 645 1 325 Eliminations (556) 433 Oil & Energy 14 766 11 583 Metals 1 516 903 Rolled Products 363 217 Extrusion and Automotive 323 308 Other an
Slide 46: Variance analysis Hydro
Variance analysis Hydro NOK million Year to date 4th quarter 2005 65 493 17 000 2004 51 116 13 210 Variance adjusted EBITDA 14 377 3 790 - Prices and currency, Exploration and Production (E&P) 15 555 4 510 - Margin incl. currency effects ¹) 250 95 - Volume 85 620 - Fixed costs 860 (85) - Depreciatio
Slide 47: Depreciation, depletion and amortization
Depreciation, depletion and amortization Individual operating segment NOK million 4th quarter 2005 4th quarter 2004 Exploration and Production 2 955 2 700 Energy and Oil Marketing 166 180 Oil & Energy 3 121 2 880 Metals 448 2 499 Rolled Products 323 178 Extrusion and Automotive 1 458 403 Aluminium 2
Slide 48: Depreciation, depletion and amortization
Depreciation, depletion and amortization Individual operating segment NOK million 2005 2004 Exploration and Production 9 961 9 752 Energy and Oil Marketing 651 640 Oil & Energy 10 612 10 391 Metals 1 687 3 798 Rolled Products 773 687 Extrusion and Automotive 2 473 1 477 Aluminium 4 934 5 962 Other a
Slide 49: Equity in net income of non-consolidated investees
Equity in net income of non-consolidated investees Individual operating segment NOK million 4th quarter 2005 4th quarter 2004 Exploration and Production 4 2 Energy and Oil Marketing (16) (11) Oil & Energy (12) (10) Metals (111) 42 Rolled Products (10) (9) Extrusion and Automotive 35 21 Aluminium (87
Slide 50: Equity in net income of non-consolidated investees
Equity in net income of non-consolidated investees Individual operating segment NOK million 2005 2004 Exploration and Production 6 4 Energy and Oil Marketing 108 73 Eliminations (2) (2) Oil & Energy 112 75 Metals 272 281 Rolled Products (27) (13) Extrusion and Automotive 100 113 Aluminium 345 381 Ot
Slide 51: Net financial income (expense)
Net financial income (expense) NOK million 4th quarter 2005 4th quarter 2004 Interest income 266 399 Dividends and net gain (loss) on securities 74 13 Interest income and other financial income 340 412 Interest expense (555) (374) Capitalized interest 252 144 Net foreign exchange gain (loss) (601) 1
Slide 52: Net financial income (expense)
Net financial income (expense) NOK million 2005 2004 Interest income 897 973 Dividends and net gain (loss) on securities 338 190 Interest income and other financial income 1 235 1 163 Interest expense (1 745) (2 077) Capitalized interest 867 664 Net foreign exchange gain (loss) (2 159) 1 350 Other (
Slide 53: Net income
Net income* By quarter NOK million Gains from divestments 4 218 4 183 4 186 3 765 3 693 3 638 3 577 3 280 2 840 2 482 2 397 2 481 2 324 2 224 2 132 513 2002 2003* 2004 2005* Accumulated 8 765 10 968 12 560 15 638 * Changes in accounting principles for 4th quarter 2005 resulted in a negative amount o
Slide 54: Investments
Investments 1) Individual operating segment NOK million 4th quarter 2005 4th quarter 2004 Exploration and Production 2) 25 979 4 021 Energy and Oil Marketing 677 464 Oil & Energy 26 656 4 485 Metals 804 600 Rolled Products 302 307 Extrusion and Automotive 726 589 Aluminium 1 832 1 496 Other activiti
Slide 55: Investments
Investments 1) Individual operating segment NOK million 2005 2004 Exploration and Production 2) 33 846 10 606 Energy and Oil Marketing 2 333 1 460 Oil & Energy 36 179 12 067 Metals 1 792 4 244 Rolled Products 545 553 Extrusion and Automotive 1 425 1 398 Aluminium 3 762 6 194 Other activities 1 097 1
Slide 56: Consolidated balance sheet
Consolidated balance sheet NOK million 31.12.2005 31.12.2004 Cash and cash equivalents 10 463 14 366 Short-term investments 3 865 10 970 Receivables and other current assets 41 411 32 220 Inventories 14 553 12 851 Non-current assets 156 902 129 836 Total assets 227 195 200 243 Short-term interest-be
Slide 57: Statement of cash flow
Statement of cash flow NOK million 2005 2004 Operating activities: Net income 15 638 12 560 Depreciation, depletion and amortization 16 086 16 898 Other adjustments (4 339) (1 734) Net cash provided by operating activities 27 385 27 724 Investing activities: Purchases of property, plant and equipmen
Slide 58: Financial solidity – calculation
Financial solidity – calculation 31 December 31 December 31 December 31 December 31 December Amounts in NOK million 2001 2002 2003 2004 2005 [A] Cash and cash equivalents 27 148 5 965 15 249 14 366 10 463 [B] Short-term investments 2 421 2 647 1 581 10 970 3 865 [C] Bank loans and other interest-bea
Slide 59: Additional information – Oil & Energy
Additional information – Oil & Energy
Slide 60: High oil price driven by supply concerns
High oil price driven by supply concerns OPEC spare capacity at low levels Million bbl/day USD per bbl 5 70 60 4 50 3 40 2 30 20 1 10 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 OPEC spare capacity Brent dated Brent forward Sources: Pira, Reuters, Platts 60
Slide 61: Oil & Energy Adjusted EBITDA
Oil & Energy Adjusted EBITDA 15 190 14 766 NOK million Eliminations Energy and Oil Marketing 12 416 11 967 Exploration and Production 11 583 10 503 9 928 9 764 9 139 8 668 7 887 7 745 6 155 6 274 5 847 5 451 2002 2003 2004 2005 Accumulated 25 340 31 826 41 777 54 339 61
Slide 62: Average prices and exchange rates
Average prices and exchange rates 450 NOK/boe USD/boe 70 Oil Oil Gas USD/boe NOK/boe NOK/USD NOK/Sm3 400 60 Q1 2004 31.6 218.3 6.91 1.10 350 Q2 2004 34.7 238.0 6.85 0.98 50 300 Q3 2004 41.7 286.3 6.87 1.07 Q4 2004 41.8 263.8 6.32 1.20 250 40 Ave. 2004 37.3 251.3 6.74 1.09 200 30 150 Q1 2005 46.4 291
Slide 63: Operating costs per boe
Operating costs per boe NOK/boe 99.7 94.9 100 83.8 82.1 80 60 40 20 0 2002 2003 2004 YTD 2005 Exploration 20.3 8.1 6.0 8.9 Net transportation 9.0 6.8 8.3 9.4 Other cost/income 1.4 1.7 0.7 3 Deprec.& aband. 46.4 46.4 46.4 48.2 Gas for injection 0.4 0.7 2.8 5.4 Prod. cost 22.2 20.0 17.9 19.9 Productio
Slide 64: Production costs per barrel
Production costs per barrel NOK/boe 30 28.4 Production cost Gas for injection 27.3 26.3 25.6 25 23.2 23.9 25.6 24.0 22.9 23.9 22.3 4.9 23.2 1.7 21.1 21.0 6.4 8.0 20.1 19.8 4.2 1.2 19.6 21.4 20 21.2 21.1 20.4 20.9 20.1 19.8 19.8 19.8 4.7 17.4 17.1 2.5 1.1 17.6 2.8 17.1 15 16.0 14.6 10 5 0 2002 2003 2
Slide 65: Oil production per field – Q4 2005
Oil production per field – Q4 2005 Boe/day Oil and NGL/Condensate Share Q4 2004 Hydro Q4 2004 Q4 2005 Hydro Q4 2005 Grane 38.00% 141 53 200 76 Oseberg incl C 34.00% 167 57 144 49 Snorre 17.65% 177 31 160 28 Oseberg South 34.00% 74 25 75 26 Troll B&C 9.78% 288 28 238 23 Ekofisk 6.65% 385 26 343 23 Gu
Slide 66: Gas production per field – Q4 2005
Gas production per field – Q4 2005 Boe/day Share Q4 2004 Hydro Q4 2004 Q4 2005 Hydro Q4 2005 Troll A 9.78% 541 53 556 54 Oseberg incl C 34.00% 76 26 78 26 Sleipner Area 9.42% 241 23 242 23 Tune 40.00% 59 24 52 21 Åsgard 9.60% 192 18 166 16 Kvitebjørn 15.00% 40 6 71 11 Gullfaks inclu. Sat 9.00% 78 7
Slide 67: Oil production per field – 2005
Oil production per field – 2005 Boe/day Oil and NGL/Condensate Share 2004 Hydro 2004 2005 Hydro 2005 Grane 38.00% 118 45 178 67 Oseberg incl C 34.00% 170 58 149 51 Snorre 17.65% 201 36 157 28 Troll B&C 9.78% 312 30 245 24 Oseberg South 34.00% 80 27 71 24 Ekofisk 6.65% 363 24 354 24 Gullfaks inclu. S
Slide 68: Gas production per field – 2005
Gas production per field – 2005 Boe/day Share 2004 Hydro 2004 2005 Hydro 2005 Troll A 9.78% 444 43 469 46 Sleipner Area 9.42% 225 21 248 23 Tune 40.00% 68 27 54 21 Oseberg incl C 34.00% 44 15 51 17 Åsgard 9.60% 173 17 176 17 Kvitebjørn 15.00% 10 2 73 11 Gullfaks inclu. Sat 9.00% 62 6 72 6 Ekofisk 6.
Slide 69: New fields on stream 2005 - 2007
New fields on stream 2005 - 2007 Field Hydro peak production (boe/day) Peak year 2003 2004 2005 2006 2007 W International Lorien 7 000 2006 Dalia 24 000 2007 W Rosa 13 000 2008 W Eastern Gulf development* 12 500 2008 WWW W Oseberg Sør J 3 500 2006 W W Oseberg Vestflanken 12 000 2007 W Oseberg Sør J
Slide 70: Exploration activity/cost
Exploration activity/cost 1400 1200 1000 800 600 NOK million Expensed share 400 200 0 -200 -400 1/01 2/01 3/01 4/01 1/02 2/02 3/02 4/02 1/03 2/03 3/03 4/03 1/04 2/04 3/04 4/04 1/05 2/05 3/05 4/05 Capitalized share Expensed Expensed old wells Cost reduction Angola Refund insurance Iran Seismic Spinna
Slide 71: Exploration effort paying off
Exploration effort paying off Barents Sea Norwegian Sea Stetind Vigdis M5 Peon Astero Troll Brent Oseberg South B Oseberg South J North Sea Hydro operated Hydro partner Hejre 71
Slide 72: Average realized gas prices
Average realized gas prices 3 NOK/Sm 2,00 1,85 1,47 1,50 1,36 1,31 1,20 1,07 1,10 1,07 1,03 1,06 0,98 0,99 1,01 0,98 1,00 0,89 0,86 0,50 0,00 2002 2003 2004 2005 72
Slide 73: UK gas prices – NBP forward curves
UK gas prices – NBP forward curves Pence/th 105 95 85 75 65 55 45 35 25 15 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 End Q4 2004 End Q3 2005 End Q4 2005 73
Slide 74: Nordic power market – forward curves
Nordic power market – forward curves NOK/MWh 350 300 250 200 150 2005 2006 2007 2008 End Q4 2004 End Q3 2005 End Q4 2005 74
Slide 75: Variance analysis Oil & Energy
Variance analysis Oil & Energy NOK million Year to date 4th quarter 2005 54 339 14 766 2004 41 777 11 583 Variance adjusted EBITDA 12 562 3 183 - Prices and currency 13 260 2 750 - Oil 4 320 1 915 - Gas (1 400) 470 - Currency - Options (625) _ (625) _ 15 555 4 510 - Margin (720) (790) - Volume 325 5
Slide 76: Variance analysis Exploration and Production
Variance analysis Exploration and Production NOK million Year to date 4th quarter 2005 50 601 13 677 2004 38 168 9 825 Variance adjusted EBITDA 12 433 3 852 Prices and currency 13 260 2 750 - Oil 4 320 1 915 - Gas (1 400) 470 - Currency (625) _ (625) _ - Options 15 555 4 510 - Volume (600) 320 - Dep
Slide 77: Variance analysis Energy and Oil Marketing
Variance analysis Energy and Oil Marketing NOK million Year to date 4th quarter 2005 4 456 1 645 2004 3 478 1 325 Variance adjusted EBITDA 978 320 - Margin 130 200 - Volume 925 240 - Fixed costs (105) (125) - Depreciation (10) 15 - Other (15) - Variance operating income 925 331 - Non-consolidated in
Slide 78: Additional information - Aluminium
Additional information - Aluminium
Slide 79: Aluminium – operating income
Aluminium – operating income NOK million Metals Rolled Products Extrusion and Automotive Other and eliminations 1,629 1,341 1,269 1,337 858 (1,009) 842 711 709 653 564 530 345 412 230 (1 952) 2002 2003 2004 2005 Accumulated 1 698 2 456 1 805 2 511 79
Slide 80: Aluminium Adjusted EBITDA
Aluminium Adjusted EBITDA Other and eliminations 2 708 NOK million Extrusion and Automotive 2 436 2 453 Rolled Products 2 335 2 096 1 948 1 207 Metals 1 809 1 619 1 572 1 498 1 516 1 292 1 316 899 827 2002 2003 2004 2005 Accumulated 4 334 6 498 8 655 8 044 80
Slide 81: Primary aluminium market
Primary aluminium market Aluminium inventories (days of consumption) Aluminium price (LME 3 month) 2,800 70 2,600 65 2,400 60 55 USD per tonne 2,200 50 2,000 days 45 1,800 40 1,600 35 1,400 30 1,200 25 1,000 20 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Aluminium price LME 3 month updated up
Slide 82: Current Position – Power Market
Current Position – Power Market EEX Power market development. Baseload contract one year ahead. Avg. spot prices for the year EUR/Mwh 70.00 65,54 60.00 z Forward prices all time high – 50.00 45,98 above 50€/Mwh z Forward power prices 40.00 driven by CO2 and 29,49 fuel prices 30.00 z Inefficient powe
Slide 83: Inventories – primary aluminium
Inventories – primary aluminium 1 000 tonnes IAI (Producers' inventories) LME (London Metal Exchange) 5 000 4 000 3 000 2 000 1 000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sources: IAI and LME 83
Slide 84: Aluminium – operational data
Aluminium – operational data Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Volumes and prices 2005 2005 2005 2005 2004 2004 2004 2004 Primary production (1 000 tonnes) * 464 461 457 444 446 441 418 415 Total metal products sales excluding trading 736 741 835 802 735 752 776 786 (1 000 tonnes) LME realized (USD/tonne) inc
Slide 85: Variance analysis Aluminium
Variance analysis Aluminium NOK million Year to date 4th quarter 2005 8 044 1 207 2004 8 655 1 516 Variance adjusted EBITDA (611) (309) - Margin (565) 420 - Volume (105) 110 - Fixed costs 945 (20) - Depreciation 225 50 - Trading and hedging ¹) 170 280 - Unrealized LME effects (1 195) (1 090) - Restr
Slide 86: Variance analysis Metals
Variance analysis Metals NOK million Year to date 4th quarter 2005 6 025 1 516 2004 5 372 903 Variance adjusted EBITDA 653 613 - Margin (155) 390 - Volume 600 155 - Fixed costs (5) (100) - Depreciation 70 10 - Trading & price hedging ¹) 170 280 - Infrequent items 2 465 2 450 - Other (105) (105) Vari
Slide 87: Variance analysis Rolled Products
Variance analysis Rolled Products NOK million Year to date 4th quarter 2005 1 565 363 2004 1 361 217 Variance adjusted EBITDA 204 146 - Margin (235) 60 - Volume 70 (25) - Fixed costs 320 105 - Depreciation 65 5 - Infrequent items (90) (145) - Other - - Variance operating income 128 2 - Non-consolida
Slide 88: Variance analysis Extrusion and Automotive
Variance analysis Extrusion and Automotive NOK million Year to date 4th quarter 2005 1 495 323 2004 1 850 308 Variance adjusted EBITDA (355) 15 - Margin (255) (35) - Volume (775) (25) - Fixed costs 630 (25) - Depreciation 85 30 - Restructuring costs (20) (20) - Infrequent items (1 050) (990) - Other
Slide 89: Additional information – Other Businesses
Additional information – Other Businesses
Slide 90: Variance analysis Polymers
Variance analysis Polymers NOK million Year to date 4th quarter 2005 564 1 2004 774 232 Variance adjusted EBITDA (210) (231) - Margin (45) (135) - Volume (150) (45) - Fixed costs 55 15 - Depreciation (20) (5) - Other (25) (10) Variance operating income (185) (183) - Non-consolidated investees (42) (
Slide 91: Investor Relations in Hydro
HYDRO Investor Relations in Hydro
Slide 92: Investor Relations in Hydro
Investor Relations in Hydro t +47 22 53 32 73 Idar Eikrem Senior Vice President Idar.Eikrem@hydro.com m +47 950 28 363 t +47 22 53 24 55 Gudmund Isfeldt Investor Relations Officer Gudmund.Isfeldt@hydro.com m +47 480 01 180 t +47 22 53 35 39 Stefan Solberg Investor Relations Officer Stefan.Solberg@hy
Slide 93: founded in 1905, with 33,000 employees in nearly 40
founded in 1905, with 33,000 employees in nearly 40 93