The Norwegian state has large holdings in oil and gas licences on Norway’s continental shelf (NCS) through the State’s Direct Financial Interest (SDFI). These are managed by Petoro AS. The company’s most important job is to help ensure the highest possible value creation from the SDFI – value which benefits the whole of Norway.
The directors’ report describes financial and operational results for the SDFI and Petoro AS. Furthermore developments in the environment and outlook are discussed.
Total appropriation to Petoro was NOK 280,3 million before VAT. At the end of the year, the company had 64 employees. Net cash flow was NOK 120 billion with a net profit in accordance with NGAAP at NOK 114 billion.
The letter of assignment describes the framework and priorities, targets and reporting requirements for the company in 2018. In this chapter Petoro describes the company's performance in relation to this.
Managing huge assets on behalf of the Norwegian state makes big demands on corporate governance in Petoro that meet expectiations from stakeholders and the society.
Managing the portfolio is subject to the accounting regulations for the government. Accounts for the portfolio are presented both on the cash basis used by the government and in accordance with the Norwegian Accounting Act.
Petoro’s operating revenue is annual appropriation from the government. Year in accounts have been set up in accordance with the provisions of the accounting act and Norwegian accounting standards or other enterprises. The company maintains seperate accounts for all transactions relating to the participatory interest in the SDFI portfolio, so that revenue and expenses for the portfolio are kept apart from operation of the company.
