Hydro Annual Report 2011b

F54
FINANCIAL STATEMENTS
Note 39 - Contractual commitments and other commitments for future investments
Note 39 - Contractual commitments and other commitments for future investments
Additional authorized future investments include projects formally approved for development by the Board of Directors or
management. General investment budgets are excluded from these amounts.
Amounts in NOK million 2012
Investments
thereafter Total
Contract commitments for investments in property, plant and equipment 379 285 663
Additional authorized future investments in property, plant and equipment 947 41 988
Contract commitments for other future investments 2 ­ 2
Total 1 328 326 1 654
Hydro has long-term contractual commitments for the purchase of aluminium, raw materials, electricity, and transportation in
addition to long-term sales commitments. The future non-cancellable fixed and determinable obligation under these
commitments as of December 31, 2011 is as follows:
Amounts in NOK million
Bauxite,
alumina
and
aluminium
Energy
related Other
Sales
commitments
2012 3 665 7 485 925 (11 588)
2013 3 543 7 212 802 (7 991)
2014 2 739 5 544 680 (6 400)
2015 2 629 5 321 630 (4 997)
2016 2 353 5 177 506 (3 318)
Thereafter 27 737 29 820 3 579 (12 181)
Total 42 666 60 558 7 121 (46 475)
Amounts relating to contracts which are wholly or partly linked to market prices such as LME, are based on the spot price as of
the balance sheet date.
Long-term sales commitments mainly relate to alumina, aluminium and electricity. Amounts include commitments for the
delivery of electricity from power stations that will revert to the Norwegian government amounting to 547 GWh in 2012 and
15.4 TWh in total. Commitments relating to concession power from stations that are not subject to reversion amount to 249
GWh annually.
Hydro also has contractual commitments for the sales and purchase of products from part-owned entities. These commitments
are excluded from the table above.
Hydro also has other long-term purchase and sales commitments which include variable elements which are not included in the
table above.