Petoro AS - Notes
Note 1 - Government contribution and other revenue
NOK 319.3 million was appropriated in 2024 for operation of Petoro AS, excluding VAT. This amount is recorded as a contribution from the Norwegian state.
Other revenue is generally associated with services in connection with managing negotiations in the SDFI portfolio, in addition to income for employees contracted out on external engagements.
Note 2 - Deferred revenue
The change in deferred revenue recorded consists of depreciation of previous years' investments with a total of NOK 0.7 million; cf. Note 5.
Note 3 - Payroll expenses, number of employees, remuneration, etc.
| Payroll expenses (All figures in NOK 1 000) | 2024 | 2023 |
|---|
| Salaries | 142,824 | 132,029 |
| Directors' fees | 2,285 | 2,174 |
| Liability insurance for the Board (applies to the entire Board of Directors) | 260 | 240 |
| Payroll tax | 24,739 | 23,479 |
| Pensions (see Note 10) | 37,225 | 32,018 |
| Other remuneration | 4,267 | 3,564 |
| Total | 211,600 | 193,504 |
| Employees at 31 December | 79 | 73 |
|---|
| Employees with a signed contract who had not started work at 31 Dec. | 1 | 1 |
| Average number of full-time equivalents employed | 72.5 | 71.5 |
Please refer to Petoro's executive pay report for 2024 for additional information about remuneration for executive management and the Board.
Note 4 – Financial items
| All figures in NOK 1,000 | 2024 | 2023 |
|---|
| Financial income | | |
| Interest income | 15,018 | 12,330 |
| Currency gain | 237 | 57 |
| Financial expenses | | |
| Interest expenses | 0 | 2 |
| Currency loss | 238 | 232 |
| Net financial result | 15,017 | 12,153 |
Note 5 - Tangible fixed assets
| All figures in NOK 1,000 | Fixtures and fittings | Operating equipment | ICT | Total |
|---|
| Acquisition cost at 1 Jan. 2024 | 5,196 | 10,987 | 41,421 | 57,605 |
| Additions fixed assets | - | - | - | - |
| Disposal fixed assets/obsolescence | - | - | - | - |
| Acquisition cost 31 Dec. 2024 | 5,196 | 10,987 | 41,421 | 57,605 |
| | | | |
| Accumulated depreciation at 1 Jan. 2024 | 4,921 | 10,526 | 40,736 | 55,183 |
| Reversed accumulated depreciation | - | - | - | - |
| Depreciation for the year | 125 | 212 | 374 | 771 |
| Accumulated depreciation at 31 Dec. 2024 | 5,046 | 10,738 | 41,110 | 56,183 |
| | | | |
| Book value at 31 Dec. 2024 | 150 | 250 | 311 | 771 |
| Economic life | Lease term | 3/5 years | 3 years | |
|---|
| Depreciation schedule | Straight line | Straight line | Straight line | |
Operational leasing contracts include office equipment and machines. The initial lease period is 3-5 years.
Note 6 - Other receivables
Other receivables consist in their entirety of pre-paid costs relating primarily to rent, insurance, licences and subscriptions for market information.
Note 7 - Bank deposits
Bank deposits total NOK 265 million, including NOK 11 million in tied-up withheld tax and funds to cover unsecured pension obligations in the amount of NOK 226 million.
Note 8 - Share capital and shareholder information
The company's share capital at 31 December 2024 comprised 10,000 shares with a nominal value of NOK 1,000 each. All shares are owned by the Norwegian state, and all have the same rights.
Note 9 - Equity
| Petoro AS (All figures in NOK 1 000) | Share capital | Other equity | Total |
|---|
| Equity at 1 Jan. | 10,000 | 25,169 | 35,169 |
| Net profit | | 8,772 | 8,772 |
| Equity at 31 Dec. | 10,000 | 33,941 | 43,941 |
Note 10 - Pension costs, assets and liabilities
The company is obliged to offer an occupational pension scheme under the (Norwegian) Mandatory Occupational Pension Schemes Act. The company's pension plans comply with the requirements of this Act.
The company implemented a new pension plan with effect from 1 January 2016. This is a defined contribution plan pursuant to the (Norwegian) Defined Contribution Pensions Act. Premiums for the defined contribution plan are expensed on a continuous basis. The company has a transitional arrangement for employees with defined benefit pension who were less than 15 years from retirement age on 1 January 2016. As of 31 December 2024, 60 employees are covered by the defined contribution scheme, while 19 employees are covered by the transitional scheme. | Net pension cost (figures in NOK 1,000) | 2024 | 2023 |
|---|
| Present value of benefits earned during the year | 10,471 | 10,945 |
| Interest expense on pension obligation | 11,761 | 10,756 |
| Return on pension plan assets | (7,027) | (6,577) |
| Recorded change in estimates | 7,652 | 4,321 |
| Payroll tax | 1,196 | 1,262 |
| Pension cost, defined benefit scheme | 24,053 | 20,707 |
| Pension cost, defined contribution plan incl. payroll tax | 13,172 | 11,311 |
| Net pension cost | 37,225 | 32,018 |
| Capitalised pension obligation | 2024 | 2023 |
|---|
| Estimated pension obligation at 31 Dec. | 399,105 | 387,844 |
| Pension plan assets (market value) | (155,000) | (143,500) |
| Net pension obligations | 244,105 | 244,343 |
| Unrecorded change in estimates | (57,753) | (61,632) |
| Capitalised pension obligation | 186,352 | 182,711 |
Calculation of the year's net pension cost is based on the assumptions of previous years. The net pension liability is calculated on the basis of assumptions in the present year. Petoro AS has allocated dedicated funds to cover unsecured pension liabilities, cf. Note 7.
The actuarial assumptions are based on common assumptions made in the insurance business for demographic factors. | 2024 | 2023 |
|---|
| Discount rate | 3.90% | 3.10% |
| Expected return on plan assets | 5.30% | 4.80% |
| Expected increase in pay | 4.00% | 3.50% |
| Expected increase in pensions | 2.40% | 1.80% |
| Expected adjustment of the National Insurance Scheme's Basic Amount (G) | 3.75% | 3.25% |
Note 11 - Other current liabilities
Other current liabilities generally consists of deposits for incurred costs, salaries owed, holiday pay and appropriation invoiced in advance for the 1st quarter of 2025.
Note 12 - Auditor’s fees
The company's chosen auditor is KPMG AS. Fees charged for external auditing of the consolidated financial statements in 2024 totalled NOK 0.4 million.
In accordance with the Act relating to the Office of the Auditor General of 7 May 2004, the OAG is the external auditor for the SDFI. PwC has been engaged as the company's financial accountant in order to prepare a financial audit of the SDFI accounts as part of the company's internal auditing. PwC invoiced NOK 1.0 million for financial auditing and NOK 0.6 million for internal auditing in 2024. Costs have also been expensed for invoiced services from PwC within joint venture auditing totalling NOK 0.6 million.
Note 13 - Leases
Petoro AS' former lease agreement with Smedvig Eiendom AS to lease office space, which originally expired in 2026, was replaced with a new contract in autumn 2024. According to the new lease, the lessor is making temporary office space available to Petoro AS as of 13 December 2024. The total annual rent cost amounts to NOK 12.6 million, including operating and overhead expenses.
Note 14 - Significant contracts
Petoro AS has a contract with Azets Insights AS (Azets) concerning the delivery of accounting services and associated ICT services linked to SDFI accounting. This agreement entered into force on 1 March 2020 and runs for five years with an option for Petoro AS to extend it for two years. Petoro chose to exercise this option in 2024. The accounting fee carried to expense for Azets in 2024 for accountancy for the SDFI amounted to NOK 9.7 million.
Petoro AS has an agreement with TietoEvry ASA for providing IT operations services for office support, administrative solutions, as well as consultant assistance. This agreement entered into force on 1 January 2024 with a duration of 1+1+1 years. Costs under the IT operations agreement for 2024 amounted to NOK 11.4 million. Petoro AS also has a contract with SLB AS concerning the operation of petroleum technology solutions. This agreement entered into force on 1 January 2023 with a duration of 3 years, and an option to extend in subsequent periods. Costs under the operations contract for petroleum technology solutions amounted to NOK 10 million in 2024.
Note 15 - Close associates
Equinor ASA and Petoro AS have the same owner, the Ministry of Trade, Industry and Fisheries, and are thus close associates. There were no significant transactions in 2024 between Equinor ASA and Petoro AS. Petoro AS acted as lead negotiator for certain fields associated with the SDFI portfolio where Equinor ASA is operator, cf. Note 1.
