Orkla Associates primarily consists of investments in the Renewable Energy Corporation ASA (REC) (39.73 % stake), Jotun AS (42.5 % stake) and Hjemmet Mortensen AS (40 % stake). The figures below are on a 100 % basis.
REC achieved its production targets and posted income growth of 10%. First-quarter operating revenues were NOK 1,771 million (NOK 1,616 million)1. EBITDA was NOK 742 million (NOK 869 million)1.
The reduction of 15 % is ascribable to high expansion costs and currency translation effects. A sales contract on wafers to an existing customer worth NOK 2 billion was announced together with the quarterly profit figures. At the start of April REC acquired 20 % of Mainstream Energy LLC in the USA, a leading downstream participant in the industry.
Continued high activity in shipbuilding and oil and gas projects, and a booming construction industry in the Middle East, enabled Jotun to maintain its progress in the first quarter of 2008. Operating revenues were up 9 % from the same period last year, accompanied by growth in operating profit. All business areas recorded sales growth and profits on a par with or better than in the same period of 2007. However, persistent high raw material prices and a weaker USD reduced margins some what in core areas. Jotun continues its international expansion and opened a new factory in India in March. Further, decisions were taken to build new factories in Korea and Libya.
Hjemmet Mortensen's first-quarter operating revenues came to NOK 436 million (NOK 459 million)1, while EBITA was NOK 50 million (NOK 74 million)1.
1 The figures in brackets refer to the corresponding period of the previous year.
2 Excluding acquisitions, divestments and currency translation effects.