Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (September 2006)
15 slides from Norsk Hydro Asa's investor day presentation, Sep 28, 2006
Slide 1: Capital Markets Day 2006
Capital Markets Day 2006 www.hydro.com 2006-09-28
Slide 2: Cautionary note in relation to certain forward-looking statements
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 a
Slide 3: Use of non-GAAP financial measures / Cautionary note in relation to oil and gas reserves
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
Slide 4: Jørgen C. Arentz Rostrup
Jørgen C. Arentz Rostrup Senior Vice President, Oil & Energy Markets 4
Slide 5: Hydro's gas story
Hydro’s gas story z Strong reserve life – 20 years z Continued increase in gas production z Cost competitive and flexible asset base z Attractive market positions 5
Slide 6: Hydro on top in European gas production growth
Hydro on top in European gas production growth Reserve life gas 2005-2010 CAGR (reserves/production as of end 2004) Hydro OMV Gaz de France Hydro Marathon Statoil Hess ExxonMobil Statoil RWE ENI Chevron BP ConocoPhillips Chevron Shell Wintershall Total ENI BG Group Total Shell BG Group ConocoPhillip
Slide 7: The growth story continues beyond 2010
The growth story continues beyond 2010 Gas production 1 000 boed 400 z Increased gas production from existing reserve base 300 z Good progress in development of discoveries 200 z High exploration activity 100 0 2001 2005 2010E 7
Slide 8: From regional to global gas markets
From regional to global gas markets Global LNG supply and demand bcm 600 Asian Demand European Demand US Demand Supply z Europe and US increasingly dependent on long-distance imports (LNG) 400 z Global balance and regional imbalances z Worldwide competition over LNG cargoes 200 z Flexibility in LNG
Slide 9: UK connected to the Continent and global markets
UK connected to the Continent and global markets Existing infrastructure Planned infrastructure/ under construction z Strong capacity build-up z Improved flexibility to balance the market Tampen Link - Connectivity to continental Vesterled Europe Langeled - Highly responsive supply and demand in US
Slide 10: Strong NCS base in volatile markets
Strong NCS base in volatile markets p/th 100 NBP DAH NBP fwd German import price (est.) Ormen Lange PDO break-even 90 80 z High gas prices driven by high oil prices 70 60 z Record-high prices during last winter 50 40 z Possibility of low-price days in summer 30 z NCS gas competitive 20 10 0 Jan-01 J
Slide 11: Flexible asset base
Flexible asset base z Diversified supply sources z Extensive pipeline network z Multiple landing points N or z Flexible fields – Oseberg w ay and Troll key fields 11
Slide 12: Flexibility in gas deliveries
Flexibility in gas deliveries Transport z Hydro has significant swing capacity Production capacity to react on price signals capacity z High production and routing towards the UK at high prices Minimum UK z Minimum production and re-routing to the Continent at low prices production Minimum UK delive
Slide 13: Increased share of gas indexation
Increased share of gas indexation z New volumes to the United Kingdom z UK contracts typically gas indexed z Liquid market enabling day-to-day optimization z Gas indexation increase from 30 percent to 50 percent of gas sales 13
Slide 14: Well placed to extract market value in Northwest Europe
Well placed to extract market value in Northwest Europe Market developments Hydro position New import capacity Competitive cost base Long-term relationships with all major players Proactive Increased volatility positioning in Flexible production emerging markets Strong trading presence Geographical
Slide 15: Strong outlook
Strong outlook z Robust market fundamentals – volatility to continue z Highly competitive growth z Effective monetization strategy and approach 15