OSLO - Norsk Hydro (OTC:NHYDY) ASA, a leading aluminum producer, has concluded its share repurchase program, finalizing transactions on January 31, 2024, as part of the 2023-2024 buyback initiative first announced on September 22, 2023. The company has successfully repurchased 21,163,019 shares in the open market, with the remaining 11,029,604 shares to be acquired from the Norwegian state. This arrangement ensures that the Ministry of Trade, Industry and Fisheries will maintain its current 34.26% stake in the company.
The aggregate number of shares bought back under this program totals 32,192,623, all of which are slated for cancellation following the Annual General Meeting's approval in May 2024. The shares purchased on the open market have already impacted the company's cash reserves, while the shares from the Norwegian state will be settled in conjunction with the capital reduction planned for mid-2024.
The weighted average purchase price for the shares acquired on the open market was 62.13 Norwegian kroner. On the final day of the program, January 31, Norsk Hydro bought 180,747 shares at an average price of 61.86 Norwegian kroner, amounting to a transaction value of 11,181,281 Norwegian kroner.
Prior to the initiation of this buyback program, Norsk Hydro held 15,096,878 of its own shares. With the recent transactions, the company's treasury stock has increased to 36,259,897 shares, equivalent to 1.78% of its share capital.
The completion of the buyback program is part of Norsk Hydro's capital allocation strategy and reflects its commitment to delivering value to shareholders. The details of the transactions carried out under the program have been made publicly available in accordance with the EU Market Abuse Regulation and the Norwegian Securities Trading Act.
This news is based on a press release statement from Norsk Hydro ASA .
InvestingPro Insights
In light of Norsk Hydro ASA's recent completion of its share repurchase program, InvestingPro data and tips offer additional context that may be of interest to investors. The company's market capitalization stands at $11.74 billion, with a Price/Earnings (P/E) ratio of 19.6, indicating investors' expectations of future earnings. Notably, the P/E ratio has adjusted to 21.44 over the last twelve months as of Q3 2023. Despite a decrease in revenue growth by 9.2% during the same period, Norsk Hydro has maintained a strong gross profit margin of 35.71%. Furthermore, the company boasts a robust dividend yield of 8.48%, rewarding shareholders significantly.
InvestingPro Tips highlight that management's aggressive share buybacks and the company's position as a prominent player in the Metals & Mining industry are key factors to consider. Additionally, with a history of maintaining dividend payments for 14 consecutive years and the expectation of profitability this year, investors may find assurance in the company's financial stability. However, it is important to note that three analysts have revised their earnings estimates downwards for the upcoming period, and net income is expected to drop this year. These mixed signals underscore the importance of in-depth analysis provided by InvestingPro, which includes over 10 additional tips for Norsk Hydro ASA at https://www.investing.com/pro/NHYDY.
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