Strong profits in oil industry

Companies holding licences on the Norwegian continental shelf performed extremely well in 1996. The average return on total assets for the companies was 22.4 per cent, and the return on net capital was 28.4 per cent. On the other hand, the profits of large mining and manufacturing companies declined from 1995 to 1996, with the average return on total assets amounting to 7.8 per cent and return on net capital totalling 13.3 per cent in 1996. Both oil and manufacturing companies improved their financial strength in 1996.

Preliminary figures show that the return on total capital for oil and gas production has not been higher since 1990, when the return on total assets was 24.1 per cent. Identical businesses increased their return on total assets from 17.1 per cent in 1995 to 22.8 per cent in 1996. The improved profitability is largely attributable to higher operating margins. Operating results compared to operating revenues increased from 25 per cent in 1995 to 32.4 per cent in 1996. Financial results worsened slightly in 1996 compared to 1995 and are mainly due to lower financial income precipitated by especially low foreign exchange profits.

New Statistics

Accounts statistics. Oil and gas extraction and manufacturing, 1996. Preliminary figures:
Statistics are published annually in the Weekly Bulletin of Statistics and Official Statistics of Norway (NOS) Statistics of Accounts. More information: Sissel Fjeld, tel. +47 21 09 47 62, e-mail: sfi@ssb.no, Anita Bjerkestrand, tel. +47 21 09 47 60, e-mail: akb@ssb.no or Bjørg Kvalshaug, tel. +47 21 09 47 49, e-mail: bok@ssb.no.

Weekly Bulletin issue no. 4, 1998