Hydro sells non-strategic stake in Norwegian power producer
(Thomson Reuters ONE) -
Norsk Hydro ASA has on July 25, 2011, entered into an agreement to divest its
20.86% non-strategic ownership stake in northern Norwegian power production
company SKS Produksjon AS to Salten Kraftsamband AS for a cash consideration of
NOK 1 billion for the shares. The sale does not affect Hydro's ownership of 9.4
TWh of annual power production in Norway.
"The stake in SKS has been a minority position and a financial asset for Hydro
yielding an annual dividend of approx NOK 30 million over the past two years. I
am pleased with the valuation we have achieved in this transaction," says
Hydro's CFO Jørgen C. Arentz Rostrup.
"As SKS is located in an area where Hydro has no industrial power consumption
and with no synergies to our other power operations, the divestment has no
effect on Hydro's primary aluminium production in Norway. We will continue to
develop our captive power assets in Norway over the next years," Rostrup says.
SKS Produksjon operates solely as a power production company and distributes
dividends to its owners on a regular basis. There is no physical power off-take
agreement to Hydro and no link to Hydro's other power assets in Norway.
Following the transaction, SKS Produksjon will be fully owned by Salten
Kraftsamband.
SKS Produksjon owns nine power stations in Nordland in the northern part of
Norway, with a normal annual production of close to 1.8 TWh per year. Around
280 GWh of the production is sold as quota power at cost.
Hydro's ownership represents about 370 GWh of the total production, or about
310 GWh when adjusted for quota power.
The transaction is expected to be completed on July 26, 2011. Hydro expects to
recognize a gain of about NOK 650 million in its third-quarter result, with no
material tax expense implications.
Hydro owns 9.4 TWh of renewable hydropower capacity in Norway and is currently
executing an upgrade and expansion program with a total investment of about NOK
1.2 billion for the period 2011-2015.
Investor contact
Contact Stefan Solberg
Cellular +47 91727528
E-mail Stefan.Solberg(at)hydro.com
Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland(at)hydro.com
*********
Certain statements included within this announcement 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 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 we believe 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 our actual results to differ
materially from those projected in a forward-looking statement or affect the
extent to which a particular projection is realized. Factors that could cause
these differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium business;
changes in availability and cost of energy and raw materials; global supply and
demand for aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value of
currencies and the value of commodity contracts; trends in Hydro's key markets
and competition; and legislative, regulatory and political factors.
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.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
[HUG#1533322]
Unternehmensinformation / Kurzprofil:
Datum: 26.07.2011 - 07:01 Uhr
Sprache: Deutsch
News-ID 56694
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"Hydro sells non-strategic stake in Norwegian power producer"
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