Net income and dividend – Norsk Hydro ASA
Norsk Hydro ASA (the parent company) had a profit before tax of NOK 9,410 million in 2007, compared with NOK 20,786 million in 2006. The decrease was mainly due to lower dividends from subsidiary companies.
On 12 March 2007 Hydro’s Board of Directors agreed to a proposed merger of Hydro’s petroleum activities with Statoil to form StatoilHydro ASA. The merger was completed on 1 October 2007. As a result of the demerger, Norsk Hydro ASA’s shareholders’ equity was reduced by NOK 33,403 million. Norsk Hydro ASA does not present the demerged business as discontinued operations. Norsk Hydro ASA’s total equity as of 31 December 2007, after the demerger and proposed dividends for 2007 was NOK 20,027 million.
According to Section 3-3 of the Norwegian Accounting Act, the Board of Directors confirms that the financial statements have been prepared on the assumption of a going concern.
