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11072
Profitable development
statistikk
2010-06-16T10:00:00.000Z
Public sector;Public sector
en
offregn, Public corporations, accounts, central government corporations, local government corporations, central government quasi-corporations, profit and loss account, balance sheet, accounts by industryLocal government finances , Central government finances , Public sector
false

Public corporations, accounts, 2003-2008

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Profitable development

Public non-financial corporations achieved a profitable account in the 2008 fiscal year. The high profit is mainly attributed to enterprises involved in mining and quarrying. Corporations involved in electricity, gas, steam and air conditioning supply also achieved high profits, totalling approximately NOK 34 billion.

Public ownership

Both the central and local government have a significant ownership interest in Norwegian business and industry. The public companies vary with regard to economic activity and employment. The level of ownership varies from holdings in large listed corporations to small fully-owned enterprises. The corporations are involved in activities such as mining and quarrying, energy supply, transport, real estate operations and rehabilitation. Mining and quarrying is the dominating business area and includes the State’s Direct Finance Investment (SDFI) and Statoil ASA among others. Corporations in the transportation and storage industry are the largest employers. These industries include Posten Norge AS and Norges Statsbaner AS.

Development

There were about 3 300 public non-financial corporations at the end of 2008. In addition, Statistics Norway has not obtained accounting data for about 100 enterprises. These are mainly small enterprises. Since 2003, the number of publicly-owned enterprises has almost doubled. One reason for this development is that some major enterprises have been reorganised either as a result of takeovers or buying and selling of corporations. Another explanation is the improved method of data collection in Statistics Norway. The number of the enterprises will differ from the structural business statistics as a result of some business units changing sector to management. The effect of these changes will be noticed in the 2009 accounting statistics publication.

Revised Standard for Industrial Classification

Statistics Norway now applies the revised Standard for Industrial Classification (SIC007) in its statistical production. Table 3, which contains information on the industrial classifications, will differ from the previous years. General information can be found here .

Public non-financial corporations achieved some NOK 470 billion in profit before tax in 2008. This is about 35.8 per cent of the operating income. The corresponding figures for 2007 were NOK 354 billion and 35.3 per cent respectively.

Operating result before tax. Public non-financial corporations. NOK million. 2003-2008

The high profit is mainly attributed to mining and quarrying, which contributed about NOK 379 billion to the profit before tax, or just slightly more than 80 per cent. SDFI and Statoil ASA dominate this industry.

The electricity, gas, steam and air conditioning supply had a good year in 2008. The profit before tax was NOK 78 billion and the net profit for the year was NOK 65 billion.

The transportation, storage, information and communication industry achieved a profit before tax of just below NOK 7 billion and a net profit of slightly more than NOK 5 billion. 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 94.5 per cent of the total profit before tax or about NOK 444 billion. SDFI alone accounted for about NOK 160 billion1. The major business units included Statoil ASA, Statkraft SF and Telenor ASA.

For local government, electricity, gas, steam and air conditioning supply enterprises were most profitable.

Operating result before tax, by sector. Per cent. 2008.

Moderate increase in asset value

Public non-financial corporations’ total assets value amounted to NOK 2 445 billion at the end of 2008. This was an increase of about NOK 336 billion from the previous year. The value of the fixed assets increased by 12.6 per cent, while the value of the current assets relating to sales of goods and services increased by 30 per cent.

However, most of the capital is located in a small number of companies. Approximately 50 corporations contributed about 75 per cent of the total assets. Each of these corporations has an asset value of more than NOK 6 billion. Twelve of these capital-intensive enterprises are owned by local government, eleven are located in the electricity, gas, steam and air conditioning supply industry and one is in real estate.

The financial situation

The public non-financial corporations had a relatively stable financial structure in the period 2003 to 2008. Since 2003, the equity ratio has been around 41 per cent. Furthermore, the ratio of fixed assets to long-term capital has been relatively stable and was about 1. In other words, fixed assets have been financed by long-term capital. The debt-equity ratio has been relatively stable.

The current ratio has had a moderate downward development from 2003 and was about 0.76 in 2008. 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. The central government quasi-corporations comprise the SDFI, Statens Kartverk, Statsbygg and Forsvarsbygg, together with the four districts’ hospital dispensaries. These corporations are wholly owned by the state.

Employment

Some 140 000 people were employed by public non-financial corporations at the end of 2008. This was an increase of around 1 850 new employees from 2007.

Central government corporations had the largest number of employees and about 81 000 people were employed at the end of 2008. Statoil ASA and Posten Norge AS are the major employers.

Central government quasi-corporations had a modest increase in the number of employees and employed some 3 700 at the end of 2008.

Employment in the local government owned enterprises continues to be on the increase and employed about 55 000 at the end of 2008.

Employees in public non-financial corporations, by sector. Per cent. 2008.

About the statistics

The statistics include all market non-financial corporations in which either the central government or municipalities/county municipalities directly or indirectly own more than 50 per cent of the shares. These include all companies incorporated by special legislation as well as central government market entities.

Types of corporations

Central and local governments are mainly engaged in the following types of corporations:

- Private limited companies and public limited companies, including public corporations

- Central and local government market entities, so-called quasi-corporations

- Companies incorporated by special legislation

IFRS (International Accounting Standards)

As from the accounting year 2005, Norwegian companies registered at Oslo Stock Exchange must use international accounting standards. Other Norwegian corporations can choose to use international accounting standards. Nevertheless, Statistics Norway does not have well defined information about the population of public-owned non-financial corporations that have started using the IFRS. Subsequently, the transition to international accounting standards can affect the comparability of the accounting figures, for example the value of assets.

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