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9032
High oil prices contributed to higher profits
statistikk
2005-06-28T10:00:00.000Z
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, 2003

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High oil prices contributed to higher profits

As a result of higher oil prices the operating income of oil companies operating on the Norwegian continental shelf increased by NOK 21 billion to NOK 404 billion in 2003 and led to a rise in operating profits of NOK 10 billion.

The operating income of the oil companies increased by 5.4 per cent from 2002 to 2003. The increase was caused by the rise in prices of Brent Blend from USD 25.14 per barrel to USD 28.72 per barrel. The operating result increased from NOK 124 billion in 2002 to NOK 134 billion in 2003. However, the annual profit only increased by NOK 1 billion in 2003, mainly due to considerably lower gains on exchange differences in 2003 than in 2002.

The average return on total assets fell from 29.9 per cent in 2002 to 27.3 per cent in 2003, while the return on equity increased from 36.0 to 37.5 per cent. The equity ratio increased by 2.7 per cent and amounted to 27.8 per cent.

Profitability measures. Extraction of crude oil and natural gas. 1998-2003

Continued increase in return on equity

The return on equity increased from 2002 to 2003, which was a year with a high return on equity. This was caused by the rise in the profit on ordinary activities after tax from NOK 44 billion to NOK 53 billion.

A substantial portion of the earnings of licensees benefited the government through direct and indirect taxes. Taxes in 2003 were estimated at NOK 88.5 billion (a decrease from NOK 98.4 billion in 2002), of which taxes payable came to NOK 93.9 billion. Taxes thus accounted for 63 per cent of pre-tax profits.

NOK 557 billion in total assets

The companies' total assets amounted to NOK 557 billion at the end of 2003, of which 15 per cent were current assets (mainly receivables) and 85 per cent fixed assets (mainly properties, plants and equipment). There has been an increase in fixed assets from NOK 445 billion in 2002 to NOK 473 billion in 2003. 25 per cent of the capital was financed by short-term debt. Long-term financing by long-term debt accounted for 47 per cent and long-term financing by equity capital 28 per cent at the end of 2003. The equity ratio increased in the course of the year, thereby increasing the oil companies' financial strength in 2003.

Financial highlights for licensees1 on the Norwegian Continental Shelf2. 1987-2003
  Number of enterprises Operating income. NOK million 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
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
1  Includes all activities in the enterprises, also not oil related.
2  Does not include the state's direct financial interest (SDøE).
3  New Accounting Act in force from 1999.
4  Profit on ordinary activities before tax in per cent of operating income.
5  The figures for operating income are not fully compareable with the previous year.
More information:  Division for Energy and Industrial Production Statistics.
Financial highlights for licensees on the Norwegian Continental Shelf,
including the state´s direct financial interest. 2002 and 2003
Key figures1 All licensees Of this the state's direct financial interest
2002 2003 20022 20032
1) Number of enterprises 35 33 1 1
2) Employees as of 31 December 22 009         19 756 - -
  NOK million
3) Operating income  490 820  508 717  108 023  105 185
4) Operating profit  193 869  202 549 69 652 68 147
5) Financial items, net 8 829  371 -9 063 -6 571
6) Profit on ordinary activities before tax  202 698  202 920 60 616 61 576
7) Profit on ordinary activities  104 273  114 409 60 616 61 576
8) Annual profit  105 197  107 245 60 616 61 576
9) Fixed assets  568 387  597 820  123 524  124 407
10) Current assets 85 109 94 436 10 832 11 101
11) Long-term liabilities  263 509  270 781 11 220 11 140
12) Short-term liabilities  140 144  148 220 4 576 5 986
13) Equity  249 842  273 256  119 429  118 382
14) Total liabilities and equity  653 496  692 257  134 356  135 508
  Per cent
15) Return on total assets 33.9 31.9 . .
16) Return on equity 42.6 44.0 . .
17) Equity ratio 38.2 39.5 . .
18) Current ratio 0.61 0.64 . .
1  Key figures per 31 December.
2  The figures for Petoro are included in the figures for all licensees and not in the figures for the State´s
direct financial interest.
More information:  Division Energy and Industrial Production Statistics.


For more information, contact: morten.qvenild.andersen@ssb.no , telephone +47 21 09 47 64.