Norwegian energy firm Norsk Hydro has posted a larger-than-expected drop in profits, blaming write-downs and restructuring costs.
Operating profits fell by 56% to 4.57bn Norwegian kroner ($745.9m; £381.5m) in the three months to December from 10.3bn kroner a year earlier.
A $836m write-down in Mexico's Gulf and the cost of a shake-up at its aluminium arm led to the fall, Norsk said.
The group also reiterated its plans to merge its oil business with Statoil.
Integration plans
"The process to plan the integration of Hydro's oil and gas activities with Statoil is on track," said chief executive Eivind Reiten.
Norwegian oil giant Statoil is set to acquire Norsk Hydro's oil and gas business in stock swap deal worth almost £15bn.
Mr Reiten said contributing to "a successful launch of the new energy company is on top of our agenda", while the group also plans to "move forward as an aluminium and power company, ready to pursue business opportunities worldwide."
The deal - to be complete by the end of September 2007 - will create the world's largest offshore oil firm, capable of producing 1.9 million barrels of oil a day.
Net income at Norsk Hydro declined to 1.32bn Norwegian kroner from 4.19bn kroner a year earlier.
The energy firm's results were in contrast to recent figures from state-run Statoil.
Statoil's full-year net income rose 31% to 40.6bn kroner in 2006.
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