水力to Merge Oil and Gas Activities and Focus on Aluminium

水力will continue as one of the world's leading, integrated aluminium companies following the recommended merger of Hydro's oil and gas activities with Statoil.

"The restructuring of Hydro’s aluminium activities is nearly complete. Hydro is ready to move on as a strong and focused aluminium company aimed at growing profitably through targeted international business development, operational excellence, leading technology and innovative solutions," said President and Chief Executive Officer Eivind Reiten, who continues in his position with Hydro and is proposed as Chairman of the Board of the merged energy company.

Following the completion of the recommended merger, Hydro will be the world’s third-largest listed aluminium company and is expected to be the fourth-largest company listed on the Oslo Stock Exchange in terms of market capitalization. Hydro’s upstream aluminium activities, Aluminium Metal, will deliver strong results in 2006 and profitability in Aluminium Products has improved.

水力is the second-largest producer of hydropower in Norway. This is an asset that will be an important part of Hydro going forward, leveraging a strong, captive power portfolio in Norway and taking competence abroad

水力将继续专注于其高性能的初级生产系统以及欧洲和美国发达的凯旋省和叛逆系统。Hydro还将在有吸引力的地区寻求新的氧化铝和金属增长机会。巴西的Alunorte氧化铝炼油厂的第三次扩展增强了其作为全球领先氧化铝炼油厂的地位。根据计划,卡塔尔计划中的巨型金属冶炼厂是一家50/50合资企业和卡塔尔石油公司之间的合资企业。

下游铝制投资组合的持续重组预计将于2007年完成。Hydro拥有欧洲一些最具成本效率的滚动产品资产,以及在全球市场上的关键位置,用于光刻表和无菌箔。该公司还建立在强大的品牌和靠近客户的基础上的重点挤压业务。它是欧洲最大的铝制建筑系统供应商。

除核心活动外,Hydro其他业务将继续在Hydro中,而Hydro在太阳能行业的参与也将保留在水中。Hydro本月早些时候宣布,计划列出或剥离其石化业务Hydro Polymers。

水力will continue with a strong financial position. Net interest-bearing debt is expected to be approximately NOK 4 billion at the end of 2006.Hydro’s debenture bonds will as part of the transaction follow the oil and gas activities. To balance the net interest bearing debt to zero, a cash amount equal to the bonds will be transferred at closing.Proposed dividend for 2006 is NOK 5 per share, totalling NOK 6.1 billion, which will be funded by Hydro’s oil and gas activity. Hydro expects to continue its current dividend policy with a payout ratio of 30 percent of net earnings over the cycle.

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