Hydro's result for the first quarter 2003

Consolidated Results (US GAAP)
(unaudited)
	First Quarter			Year
	2003	2003	2002	2002
Million, except per share data	NOK	EUR1)	NOK	NOK
Operating revenues	44,814	5,660	37,766	167,040
Operating income	6,772	855	4,823	19,841
Non-consolidated investees	277	35	108	33
Interest income and other   financial income	424	54	586	1,418
Other income, net	40	5	77	219
Earnings before interest expense   and taxes (EBIT)	7,513	949	5,594	21,511
Interest expense and foreign   exchange gain/(loss)	(1,059)	(134)	(832)	517
Income before taxes and   minority interest	6,454	815	4,762	22,028
Income tax expense	(4,274)	(540)	(2,634)	(13,278)
Minority interest	21	3	4	15
Income before cumulative   effect of change in   accounting principle	2,201	278	2,132	8,765
Cumulative effect of change in   accounting principle	281	35	-	-
Net income	2,482	313	2,132	8,765
Earnings per share before   change in accounting principle    (in NOK and Euro)	8.50	1.10	8.30	34.00
Earnings per share    (in NOK and Euro)	9.60	1.20	8.30	34.00
Financial data
EBITDA2) - million	11,164	1,410	8,588	35,658
Investments - million	4,810	608	26,403	45,716
Net interest-bearing debt/equity3)	0.34	0.34	0.49	0.44

1) Presentation in EURO is a convenience translation based on the exchange rate at March 31, 2003, which was 7.9176
2) EBITDA: Earnings before Interest, Tax, Depreciation and Amortization
3) Net interest-bearing debt divided by shareholders' equity plus minority interest.

 

Norsk Hydro's net income in the first quarter of 2003 was NOK 2,482 million (NOK 9.60 per share), an increase from NOK 2,132 million (NOK 8.30 per share) in 2002. Net income included a positive effect to the change in accounting principle of NOK 281 million (NOK 1.10 per share).

 

"The first quarter of the year has been a period of continued improvements in operations in our three core areas. I would particularly like to highlight the strong development in Oil and Energy, where new oil and gas production records have been set, at the same time prices have been high. The extensive improvement programs in the aluminium operation are on schedule, and Hydro Agri has produced good results despite high energy costs and unfavorable development in foreign exchange rates. Good cash earnings further strengthen the company's financial position. We will continue to maintain high pressure on internal improvement programs and stringent capital discipline," says President and CEO, Eivind Reiten.

 

Hydro's oil and gas production in the first quarter of 2003 reached an average of 552,000 barrels of oil equivalents per day (boed), with particularly high gas sales due to low temperatures on the European Continent. The development of the Grane oil field made highly satisfactory progress, and the field is expected to start production in October 2003. Thus far, the oil and gas production target for 2003 of an average of 510,000 boed is being maintained.

 

The improved results in Aluminium were mainly due to new activities following the acquisition of VAW and Technal in the first quarter of 2002. The markets remain weak, with margins for finished products under pressure. The strong Norwegian kroner, particularly in relation to the US dollar, continues to remain a challenge to Norwegian aluminium operations. The improvement programs are proceeding according to plan, and sharp focus will be directed during the year to ensuring that the targets are met despite the difficult market situation.

 

Hydro Agri continues to produce good results, although improved market conditions did not fully compensate for negative currency effects and high energy costs. Agri further strengthened its competitive position during the first quarter of 2003, principally through increasing its market share in Europe.

 

Provisions for tax amounted to NOK 4,274 million in the first quarter of 2003. This was equivalent to 66 percent of pre-tax income.

 

First quarter 2003
NOK million	Operating income (loss)	Non-cons.inv., Interest & selected fin. items	Other income	Depreciation and amortization	EBITDA
Hydro Oil and Energy	6,175	108	-	2,385	8,668
Hydro Aluminium	653	128	-	791	1,572
Hydro Agri	807	133	-	262	1,202
Other Activities	(5)	31	23	211	260
Corporate and Eliminations	(858)	301	17	2	(538)
Total	6,772	701	40	3,651	11,164

 

Further information about Norsk Hydro ASA and the company's first quarter results 2003 are available on the Internet:
www.hydro.com

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Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2002 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.

 

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 (www.hydro.com).