Public corporations, accounts, 2014

Public non-financial corporations achieved NOK 152 billion in profit before tax in 2014. This is about 12 per cent of the operating income. The corresponding figures for 2013 were NOK 432 billion and 33 per cent respectively.

The decrease in the profit is mainly the result of the reduction in profit in mining and quarrying, and also the water supply, sewerage, waste management and remediation activities. State's Direct Financial Interest (SDFI) and Statoil ASA and BIR AS dominate these industries.

Electricity, gas, steam and air conditioning supply had a total decline of NOK 3 billion in operating results compared to the previous year.

The information and communication industry achieved a profit before tax of NOK 2 billion and a deficit of NOK 614 billion. Transportation and storage achieved a profit before tax of NOK 10 billion, and a net profit of just under NOK 3.8 billion. The major corporations in this industry include Telenor ASA, Posten Norge AS and Norges Statsbaner AS.

Central government corporations had major deficit

While central government quasi-corporations achieved a profit of just less than NOK 115 billion, the central government corporations had a total deficit of almost NOK 92 billion. The decrease in the net profit for the year is a result of an increase in financial expenses from the previous year. Some of the foreign subsidiary companies had a reduction in the asset value. The central government corporations and the central government quasi-corporations accounted for about 94 per cent of the total operating profit. SDFI had a deficit of slightly more than NOK 9 billion. The deficit for the local government-owned enterprises was almost NOK 8 billion in 2014.

Increase in assets

Public non-financial corporations’ total assets amounted to NOK 3 473 billion at the end of 2014. This was an increase of about NOK 300 bill50ion from the previous year. The value of the fixed assets increased by 6.1 per cent, while the value of the current assets increased by 24.8 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 7 billion. Eleven of these capital-intensive enterprises are owned by local government and these are all located in the electricity, gas, steam and air conditioning supply industry.

The financial situation

The public non-financial corporations had a relatively stable financial structure in the period 2009 to 2014. The equity ratio was about 48 per cent in 2014.

Furthermore, the ratio of fixed assets to long-term capital has been relatively stable at around 1, but nevertheless had a slight decrease in the period 2009-2014. The fixed assets have mainly been financed by long-term capital.

The current ratio increased from 0.98 in 2013 to 1.05 in 2014. This means that the current assets have gone from being less than the current liabilities to being higher 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.

1 The accounting figures are taken from Petoros AS Annual Accounting Report for 2014.