Annual reports for non-financial limited companies, account statistics, 2004

Non-financial limited companies had an average net profit of 15.5 per cent of invested equity in 2004. This was 7 percentage points higher compared to the previous year, and it is the highest since 1999. Oil and gas extraction and shipping contributed significantly to the high average. Return on capital for mainland-Norway was 13.4 per cent in 2004 compared to 7.7 per cent in 2003.

Industries in which return on capital is higher than average are, among others, mining of metal ores, with 33 percent, sale of motor vehicles and automotive fuel, with 32 per cent, and oil and gas extraction, with 24 per cent as well as construction, with a net profit of 32 per cent of invested equity. Industries where return on capital is lower than average are, among others, hotels and restaurants, with 10 per cent, fishing, with 7 per cent, manufacturing, with 7 per cent and electricity, gas and water supply, with 6 per cent. For detailed industry groups, comparable key figures based on the final accounting figures for the limited companies for 2004 can now be found in StatBank.

Net profit percentage

Profitability can also be expressed as a percentage of operating income. In 2004, non-financial limited companies had an average net profit, measured as a ratio of operating income, of 16.3 per cent. This was 10 per cent higher than it was in 2003, and it is the highest since 1999. Again oil and gas extraction and shipping have a significant impact on the average. For mainland-Norway, net profit as a percentage of operating revenues increased from 5.9 per cent in 2003 to 10.2 per cent in 2004. The highest net profit as a ratio of operating revenues was in real estate activities, with 62 per cent, and oil and gas extraction, with 39 per cent. Also, net profit percentage was high in electricity, gas and water supply and ocean transport, with 30 and 27 per cent, respectively. On the contrary, net profit as a percentage of operating revenues was just 3 per cent in hotels and restaurants, and in wholesale and retail trade, it was 4.4 per cent.

About the statistical basis

The statistics cover a total of 140 553 non-financial limited companies. The information on the companies is obtained from the Register of Company Accounts in Brønnøysund. According to Statistics Norway’s Central Register of Establishments and Enterprises, there were 154 656 non-financial limited companies in 2004.

There have been some classificatory changes in industry codes from 2003 to 2004, and this may affect comparability across industries between the two years. Changes in the classification of industries have affected the balance sheet more than the income statement.

The statistics include non-financial limited companies which have sent their accounts to the Register of Company Accounts. The statistics do not cover companies engaged in financial activities and other financial services (commercial banks, savings banks, finance companies and other financial enterprises). Accounts having serious errors or shortcomings in either the income statement or the balance sheet are excluded. Accounts for companies which are in the process of closing are excluded, since these accounts have not been prepared under the assumption of going concern and are therefore not comparable.

Tables:

• Table 1 Selected accounting figures for limited companies. Income statement. NOK million
• Table 2 Selected accounting figures for limited companies. Balance sheet at 31 December. NOK million
• Table 3 Key figures for limited companies