Best ever result for Hydro

Aluminium operations, Hydro's core business after the merger of its oil and gas activities with Statoil, posted its strongest-ever first-half results, providing Hydro with a solid platform for growth as a leading global aluminium supplier. The companys says in its report that the merger with Statoil is on track for completion on 1 October, following shareholder and important regulatory approvals. Net income rose to NOK 6,060 million in the second quarter 2007 from NOK 5,594 million in the previous quarter and NOK 5,932 million in the same quarter of 2006. Earnings before financial items and tax (EBIT) amounted to NOK 14,198 million in the second quarter, compared with NOK 14,644 million in the first quarter of 2007 and NOK 15,620 million in the second quarter last year. Results for Aluminium Metal, Hydro's upstream aluminium business, were close to the record level achieved in the previous quarter, supported by firm aluminium prices and stable production. Aluminium Products, the company's downstream operations, delivered solid results reflecting sustained positive market conditions in Europe despite a continued weak North American market. "The second quarter confirms Hydro's operational performance in all core activities, giving us a solid basis to grow as a global aluminium company," said Hydro President and CEO Eivind Reiten. "I'm pleased to report that Hydro's extensive restructuring and rationalization program continues to deliver results, enabling the organization to concentrate on new and promising business opportunities worldwide," he said. "With the final go-ahead to begin construction of the Qatalum aluminium plant in Qatar, a key element in our growth strategy is in place. We have also signed a strategically important agreement with the intention to take part in the development of a new alumina refinery in Brazil, following our successful participation in the nearby Alunorte refinery. Upstream investments in geographically strategic areas are in line with our growth strategy as Hydro enters a new era as a global aluminium company," Reiten said.