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9044
Lower profit for oil companies
statistikk
2009-12-08T10:00:00.000Z
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
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Oli and gas extraction, statistics of account, 2007

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Lower profit for oil companies

The operating profit for the oil companies operating on the Norwegian continental shelf decreased by NOK 52 billion to NOK 248 billion in 2007, as a consequence of decreased oil production and a decline in prices for natural gas. Last time the profit went down was in 2002.

Prices of natural gas decreased by 10 per cent in 2007 and the production went down with 6 per cent. This contributed to a decline in the operating profit of 18.3 per cent.

The average return on total assets and the average return on equity went down in 2007. The average return on total assets was measured to 39.4 per cent in 2007, but corrected for a merger between two companies, the figure falls to about 36 per cent.

Average return on equity increased from 46.3 to 48.0 per cent, corrected for the merger. Without the merger, the equity return would have been about 42 per cent in 2007.

The decrease in average return on total assets is caused by a decrease in operating result and an increase in total capital. The decrease in average return on equity is mainly caused by the decrease in the ordinary result.

Profitability measures. Extraction of crude oil and natural gas. 2003-2007.

Increased total capital

Total capital in the companies was booked at NOK 918 billion at the end of 2007, an increase of more than 23 per cent since 2006. Of this capital, 19.3 per cent was bound in current assets (mainly receivables) and 80.7 per cent in fixed assets (mainly property, plant and equipment). There has been an increase in fixed assets from NOK 610 billion in 2006 to NOK 741 billion in 2007. 33 per cent of the capital was financed by short-term debt. Long-term financing by long-term debt made up 40 per cent and long-term financing by equity capital 27 per cent at the end of 2007. Due to a relatively larger increase in short-term debt compared with current assets, the current ratio decreased from 0.62 to 0.60 in the course of the year, and thereby decreasing the oil companies' financial strength in 2007.

Financial highlights for licenses1 on the Norwegian Continental Shelf2. 1989-2007
Year Number of enterprises Operating income Mill. NOK 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
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
2000 ..... 31  343 657 43.0 440.7 33.6 32.2 26.0 0.68
2001 ..... 34 5 375 032 37.3 437.2 32.1 34.3 22.6 0.49
2002 ..... 34  382 797 32.4 437.1 29.9 36.0 25.1 0.54
2003 ..... 32  403 532 33.3 435.0 27.3 37.5 27.8 0.59
2004 ..... 37  496 706 36.0 440.5 35.1 44.1 26.0 0.51
2005 ..... 40  634 675 40.9 446.5 46.7 61.6 29.9 0.62
2006 ..... 55  698 358 42.8 446.9 47.0 46.3 32.2 0.62
2007 ..... 57  706 183 35.1 441.0 39.4 48.0 27.4 0.60
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.
5  The figures for operating income are not directly compareable with the previous year.
More information:  Division for Energy and Industrial Production Statistics.
Financial highlights for licensees on the Norwegian Continental Shelf, included the state´s direct financial interest. 2005-2007
Key figures1 All licensees Of this the state's direct financial interest
2005 2006 2007 20052 20062 20072
1) Number of enterprises 41 56 58 1 1 1
2) Employees as of 31 December 19 845 20 763 21 086 - - -
  NOK million
3) Operating income  791 296  877 676  878 354  156 621  179 318  172 171
4) Operating profit  372 348  430 029  362 709  113 069  129 833  114 493
5) Financial items, net 29 168 19 349 32 617 -6 567 -8 210 -8 781
6) Operating result before taxes  401 516  449 378  395 326  106 502  121 623  105 712
7) Ordinary result  217 334  223 934  209 937  106 502  121 623  105 712
8) Annual profit  218 413  227 324  209 937  106 502  121 623  105 712
9) Fixed assets  682 235  768 338  899 133  142 238  158 432  158 178
10) Current assets  160 121  154 204  203 230 21 274 20 757 26 121
11) Long-term liabilities  269 775  318 472  397 529 19 186 31 228 29 123
12) Short-term liabilities  235 148  227 971  316 268 9 771 11 212 18 178
13) Equity  337 433  376 098  388 867  134 554  136 748  136 998
14) Total liabilities and equity  842 356  922 542 1 102 663  163 512  179 188  184 299
  Per cent
15) Return on total assets 52.0 52.4 43.8 . . .
16) Return on equity 70.7 62.8 59.3 . . .
17) Equity ratio 40.1 40.8 35.3 . . .
18) Current ratio 0,68 0,68 0,64 . . .
1  Key figures per 31 December.
2  The figures for Petoro are included in the figures for all licenses and not in the figures for the State´s
direct financial interest.
For more information:  Division Energy Statistics.