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9040
Increased income in oil industry
statistikk
2001-09-05T10:00:00.000Z
Energy and manufacturing;Establishments, enterprises and accounts
en
oljeregn, Oli and gas extraction, statistics of accountAccounts , Oil and gas , Establishments, enterprises and accounts, Energy and manufacturing
false

Oli and gas extraction, statistics of account, 1999

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Increased income in oil industry

Oil companies licensed to operate on the Norwegian Continental Shelf experienced increased profitability in 1999. The operating income was even higher than in the top year 1997.

The average return on total assets went up from 10.5 per cent in 1998 to 14.4 per cent in 1999, while return on equity increased from 16.3 to 16.6 per cent. The equity ratio was stable and amounted to 27.0 per cent. The returns on assets and on equity are not higher because of the rise in total equity and liabilities from 1998 to 1999.

The increase in profitability is due to a rise in sales revenues, which in turn was caused by the higher oil prices throughout 1999 than in 1998. As a result, operating profits in relation to operating revenues went up from 22.4 per cent in 1998 to 27.1 per cent in 1999.

Stable return on equity

The return on equity was stable from 1998 to 1999 despite of increased operating income from 154 billions in 1998 to 191 billions in 1999 (compared to 188 billions in 1997). Return on net capital went up from 16.3 per cent in 1998 to 16.6 per cent in 1999. A substantial share of the earnings of licensees benefited the government through direct and indirect taxes. Taxes in 1999 were estimated at NOK 31.5 billion (an increase from NOK 13 billion in 1998), of which taxes payable came to NOK 23 billion. Taxes thus accounted for 64 per cent of pretax profits. Oil and gas companies had an average annual profit of NOK 9.3 out of every NOK 100 turned over in 1999.

NOK 431 billion in total capital

Total capital in the companies was booked at NOK 431 billion at the end of 1999. Of this capital, 18 per cent was bound in current assets (mainly receivables) and 82 per cent in fixed assets (mainly property, plant and equipment). 22 per cent of the capital was financed by short-term debt. Long-term financing by long-term debt made up 51 per cent and long-term financing by equity capital 27 per cent at the end of 1999. The equity ratio went up in the course of the year, thereby increasing the oil companies' financial strength in 1999.

Financial highlights for licenses1 on the Norwegian Continental Shelf2. 1987-1999
  Number of enterprises Operating income Million kroner Operating profit in per cent of operating income Profit before extraordinary items in per cent of operating income Return on total assets. Per cent Return on equity. Per cent Equity ratio. Per cent Current ratio
1987 50 102 054 20,4 17,9 15,8 28,5 24,1 0,88
1988 52 96 902 18,8 14,8 13,1 23,0 25,1 0,92
1989 54 117 800 23,4 19,3 17,6 27,9 28,1 1,00
1990 55 130 088 33,1 29,7 24,1 31,5 28,7 0,84
1991 53 138 694 26,5 25,0 19,9 28,2 30,4 0,71
1992 51 137 078 25,0 19,4 14,2 9,5 24,3 0,73
1993 52 145 929 24,4 18,2 13,6 12,8 23,1 0,62
1994 47 153 754 23,7 24,5 17,2 24,5 25,4 0,57
1995 46 158 748 25,4 24,0 16,7 23,8 25,9 0,60
1996 43 187 587 32,6 30,4 22,4 28,4 27,3 0,72
1997 41 188 256 34,0 28,7 19,9 20,3 28,2 0,68
1998 39 148 133 22,4 18,7 10,5 16,2 26,9 0,72
19993 36 191 226 27,1 425,8 14,4 16,6 27,0 0,80
1  Includes all activities in the enterprises, also not oil related.
2  Not included the state´s direct financial interest.
3  New accounting law in force from 1999.
4  Ordinary profit before taxes.
Financial highlights1 for licensees on the Norwegian Continental Shelf,
included the state´s direct financial interest. 1998 and 1999
  All licensees Of which the state's direct financial interest
  1998 19992 1998 19992
1 Number of enterprises 40 37 1 1
2 Employees as of 31 December 26 503     25 620 - -
  Million kroner
3 Operating income 205 732 279 047 57 599 87 821
4 Operating profit 58 413 96 555 25 329 44 719
5 Financial items, net 3-14 115 -11 039 3-8 645 -8 477
6 Operating result before taxes   85 516   36 242
7 Ordinary result   53 978   36 242
8 Annual profit 29 233 53 978 16 684 36 242
9 Fixed assets 430 060 510 346 135 192 154 991
10 Current assets 50 437 88 383 5 873 12 276
11 Long-term liabilities 187 930 229 848 1 540 10 477
12 Short-term liabilities 68 656 101 668 6 970 6 021
13 Equity 223 910 267 213 132 555 150 769
14 Total liabilities and equity 480 497 598 729 141 065 167 267
  Per cent
15 Return on total assets 12,9 18,3 . .
16 Return on equity 14,4 21,8 . .
17 Equity ratio 46,6 44,6 . .
18 Current ratio 0,73 0,87 . .
1  Key figures per 31 December.
2  New accounting law in force from 1999.
3  Interests on fixed capital paid to the Government are included.

The statistics are published annually in Daily Statistics and Official Statistics of Norway (NOS) Oil and Gas Activity.