Decline in operating profit for public non-financial corporations

Public non-financial corporations achieved some NOK 129 billion in operating profit in 2016. This is about 14 per cent of the operating Income. The corresponding figures for 2015 were NOK 174 billion and 17 per cent respectively, according to update figures from Public corporations, accounts.

The operating profit before tax in 2016 was NOK 180 billion. This is about 20 per cent of the operating income. The corresponding figures for 2015 were NOK 163 billion and 16 per cent respectively.

The decrease in the profit is mainly the result of a reduction in profit in mining and quarrying, and the manufacturing and professional, scientific and technical activities. In these industries, operating profit declined by NOK 63 billion from 2015 to 2016. State's Direct Financial Interest 1 (SDFI) and Statoil ASA dominate these industries.

The operating profit in electricity, gas, steam and air conditioning supply improved by NOK 8 billion compared to the previous year.

The information and communication industry achieved an operating profit of NOK 7 billion. Transportation and storage realised operating profit of NOK 8 billion. The major corporations in this industry include Telenor ASA, Posten Norge AS and The Norwegian State Railways.

Major operating profit in central government corporations

While the operating profit in the central government corporations was almost NOK 43 billion, the central government quasi-corporations realised a total operating profit of almost NOK 60 billion. The central government corporations and the central government quasi-corporations accounted for about 89 per cent of the total operating profit. SDFI achieved operating profit of NOK 60 billion.

The operating profit of the local government-owned enterprises was almost NOK 26 billion in 2016.

Decline in asset value

The value of public non-financial corporations’ total assets was around NOK 3 147 billion at the end of 2016. This was a decline of about NOK 89 billion from the previous year. The value of the fixed assets declined by 2.7 per cent, while the value of the current assets declined by 7.1 per cent.

However, most of the capital is located within 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. Fifteen of these capital-intensive enterprises are owned by local government and these are mostly 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 2011 to 2016. The equity ratio was about 43 per cent in 2016.

Furthermore, the ratio of fixed assets to long-term capital has been relatively stable at around 1. Nevertheless, it had a slight decrease in the period 2011-2016. The fixed assets had mainly been financed by long-term capital.

The current ratio declined from 1.02 in 2015 to 0.87 in 2016. This means the current asset has gone from being more than the current liabilities to being less 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.