Oil and Gas Still Largest Contributor to Norway Economy

Corporations involved in information and communication, electricity, gas, steam and air conditioning supply also contributed with just small changes, according to Statistics Norway.

Public non-financial corporations achieved some NOK 443 billion profit before tax. This is about 32 per cent of the operating income. The corresponding figures two years ago were NOK 575 billion and 40 per cent respectively.

The decrease in profit is mainly a result of the reduction in profit in mining and quarrying. SDFI and Statoil ASA dominate this industry.

The information and communication industry achieved a profit before tax of some NOK 36 billion and a net profit of just over NOK 32 billion. The transportation and storage industry realised profit before tax of some NOK 7 billion, and just below NOK 6.1 billion in net profit. The major corporations in this industry include Telenor ASA, Posten Norge AS and Norges Statsbaner AS.

Central government corporations with highest profit

Central government corporations and central government quasi-corporations together accounted for some 93.4 per cent of the total profit before tax or about NOK 414 billion. SDFI alone accounted for NOK 133 billion (the accounting figures are collected from Petoros AS Annual Accounting Report for 2013). Other major business units included Statoil ASA, Statkraft SF and Telenor ASA.

The local government enterprises achieved a profit of NOK 19.8 billion.

Increase in asset value

Public non-financial corporations’ total assets value amounted to some NOK 3 788 billion at the end of 2013. This was an increase of about NOK 762 billion from the previous year. The value of the fixed assets increased by 33.1 per cent, while the value of the current assets relating to sales of goods and services decreased by 3.7 per cent.

However, most of the capital is located in a small number of companies. Approximately 50 corporations contributed more than three quarters of the total assets. Each of these corporations has an asset value of more than NOK 8 billion. Eighteen of these capital-intensive enterprises are owned by local government and half of these are located in the electricity, gas, steam and air conditioning supply industry.

The financial situation

Public non-financial corporations had a relatively stable financial structure in the period 2008 to 2013. The equity ratio was about 45 per cent last year.

Furthermore, the ratio of fixed assets to long-term capital has been relatively stable and was around 1 during the period. In other words, fixed assets have been financed by long-term capital. The debt-equity ratio has been relatively stable.

The current ratio increased from 0.87 to 1.00. This means that the current assets are lower than the current liabilities. The figures do not necessarily illustrate the enterprises’ liquidity and therefore require careful consideration.

Central government quasi-corporations have been excluded here because the equity in these corporations cannot be compared with other public corporations.

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