Norsk Hydro launches a refreshed share buyback program
Norsk Hydro ASA has started a refreshed share buyback program approved by the Board of Directors. The aim is straightforward: return cash to shareholders and reduce the company’s share capital. It’s a measured step that aligns with Hydro’s long-standing focus on shareholder value and responsible capital management.
Program scope and size
The company may repurchase up to 100,000,000 shares, with a total spending cap of NOK 2,000 million. At today’s levels, that corresponds to about 1.8% of the market value of Norsk Hydro’s share capital—a meaningful but disciplined allocation that reflects the company’s solid standing.
Timeline and authorization
The buyback is scheduled to start on September 11, 2024 and is intended to be completed by February 28, 2025. The Board’s authorization to run the program remains valid until June 30, 2025. After the purchases are completed, the shares are intended to be cancelled—reducing the share capital—subject to approval by Norsk Hydro’s General Meeting.
Price limits
The program sets clear price boundaries: a minimum purchase price of NOK 20 per share and a maximum of NOK 150 per share. These limits define how the company may operate in the market and provide a transparent framework for execution.
Maintaining the State’s ownership percentage
Norsk Hydro has an agreement with the Norwegian State to keep the State’s ownership stake unchanged on a percentage basis. This will be achieved through a pro-rata redemption of shares owned by the State as other shares are bought back and cancelled. The approach balances shareholder interests with regulatory considerations.
Independent execution by Citigroup Global Markets
Citigroup Global Markets Europe AG has been engaged to carry out the buyback. Trading decisions will be made independently by Citigroup under its own protocols, ensuring a clear separation from Norsk Hydro’s day-to-day influence over purchases in the market.
Compliance and transparency
The program will be executed in full compliance with the Market Abuse Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) No 2016/1052. Operating within these rules supports a transparent process and helps maintain investor confidence in how the buyback is conducted.
Investor relations contact
Questions from investors are welcome. Please contact Martine Rambøl Hagen, Head of Investor Relations at Norsk Hydro, at +47 91708918 or Martine.Rambol.Hagen@hydro.com.
Frequently Asked Questions
What’s the goal of Norsk Hydro’s buyback?
The program is designed to return cash to shareholders and reduce the company’s share capital through the cancellation of repurchased shares, in line with the Board’s capital reduction strategy.
How many shares could be bought?
The company may repurchase up to 100,000,000 shares, with total spending capped at NOK 2,000 million.
What are the price limits for purchases?
Shares may be bought at no less than NOK 20 per share and no more than NOK 150 per share.
Who will execute the buyback?
Citigroup Global Markets Europe AG will execute the program and make trading decisions independently of Norsk Hydro.
When does it run?
The buyback is set to begin on September 11, 2024 and is intended to conclude by February 28, 2025. The authorization remains valid until June 30, 2025, and the repurchased shares are intended to be cancelled subject to General Meeting approval.
