Norsk Hydro to close polymers sale in Q1

30 October 2007 07:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Norwegian energy major Hydro said on Monday it expects to close the sale of its polymers business in the first quarter of 2008 after the unit more than doubled third quarter net income on strong polyvinyl chloride (PVC) prices.

Third-quarter net income for the polymers unit reached Norwegian kroner (NKr) 296m ($55.4m/€38.4m) up from NKr146m in the same period a year ago, it said in a statement on its website.

Net income for the first nine months this year reached NKr590m, up 3.7% compared with the same period of 2006, it added.

The company has stopped recording depreciation for the unit which has been classified as held for sale.

Net earnings from the unit will remain with Hydro until the close of the sale to INEOS, it added.

The sale was delayed after the European Commission (EC) extended its investigation into the proposed acquisition to consider the effects on competition in the UK suspension-PVC (S-PVC) market and in other national markets for caustic soda, S-PVC compounds and PVC films.

At group level, the new Hydro, which has merged its petroleum business with Statoil, recorded a 9.7% fall in its third quarter earnings before interest and taxes (EBIT) to NKr12.58bn.

($1 = NKr5.34/€1 = NKr7.70)

By: Florence Tan
+65 6780 4359

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