By Nicholas George
Norsk Hydro, the Norwegian energy and metals group, on Tuesday reported record quarterly profits boosted by higher prices for both oil and aluminium.
Norway's second-largest oil producer realised an average price of US$46.4 per barrel during the three months to March 31, up 47 per cent on the same period a year earlier. Pre-tax profits rose to NKr11.06bn (€1.36bn) compared with NKr8.89bn.
In its oil and energy division operating profits reached NKr9.842bn during the period despite a five per cent drop in production to 584,000 barrels of oil equivalents per day. The fall was due to unscheduled shutdowns of the Vigdis and Snorre fields and other fields.
Hydro said it expected oil prices to remain high.
Eivind Reiten, chief executive said: "Our operating results for the first quarter of 2005 represent a new record result for Hydro.
"High oil and gas prices and increased aluminium prices combined with good production performance underlie the very strong financial results. The quarter contributes to a continued improvement of our financial strength," he said.
Shares in the group were up NKr3 at NKr534 by late morning in Oslo.
(Financial Times)