The State Ownership Report 2018
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THE STATE OWNERSHIP REPORT 2018 1 Contents In case of discrepancy between the original text in Norwegian Contents and the English translation, the Norwegian text shall prevail. Foreword by the Minister 3 Electronic Chart Centre AS 64 Rogaland Teater AS 104 GIEK Kredittforsikring AS 65 Simula Research Scope and key figures 5 Investinor AS 66 Laboratory AS 105 Key issues for the State as owner 9 Kommunalbanken AS 67 Siva – Selskapet for Industrivekst SF 106 Mantena AS 68 Return and financial values 11 Space Norway AS 107 Nysnø Klimainvesteringer AS 69 Statnett SF 108 Key figures describing Posten Norge AS 70 Statskog SF 109 financial performance 17 Statkraft SF 71 Staur gård AS 110 Vygruppen AS 72 Corporate governance 23 Store Norske Spitsbergen Kulkompani AS 111 You are what you measure 29 CATEGORY 4 Talent Norge AS 112 Diversity as a – Sectoral policy objectives Trøndelag Teater AS 113 competitive advantage 35 Andøya Space Center AS 76 Universitetssenteret Avinor AS 77 på Svalbard AS 114 AS Vinmonopolet 115 CATEGORY 1– Bane NOR SF 78 Commercial objectives Bjørnøen AS 79 Carte Blanche AS 80 Regional health authorities Ambita AS 42 AS Den Nationale Scene 81 Helse Midt-Norge RHF 118 Baneservice AS 43 Den Norske Opera & Ballett AS 82 Helse Nord RHF 119 Entra ASA 44 Eksportkreditt Norge AS 83 Helse Sør-Øst RHF 120 Flytoget AS 45 Enova SF 84 Helse Vest RHF 121 Mesta AS 46 Entur AS 85 Other companies 123 Gassco AS 86 CATEGORY 2 – Commercial objectives and ensuring head office functions Gassnova SF 87 Appendices 125 in Norway Graminor AS 88 Remuneration to the board Innovasjon Norge 89 and auditors for 2018 126 Aerospace Industrial Maintenance Norway AS 50 Kimen Såvarelaboratoriet AS 90 Remuneration to Kings Bay AS 91 the CEO for 2018 127 Aker Kværner Holding AS 51 Nationaltheatret AS 92 DNB ASA 52 Proportion of women on Nofima AS 93 the board of directors and Equinor ASA 53 Nordisk Institutt for in management 128 Kongsberg Gruppen ASA 54 Odontologiske Materialer AS 94 Feedback from the companies Nammo AS 55 Norfund 95 regarding some of the state’s Norsk Hydro ASA 56 Norges sjømatråd AS 96 expectations linked to the Telenor ASA 57 Norsk Helsenett SF 97 work relating to corporate Yara International ASA 58 social responsibility 130 Norsk rikskringkasting AS 98 Norsk Tipping AS 99 Owner-appointed and shareholder-elected CATEGORY 3 – Norske tog AS 100 board members 132 Commercial and other NSD – Norsk senter for specifically defined objectives forskningsdata AS 101 Contact details 136 Argentum Fondsinvesteringer AS 62 Nye Veier AS 102 Special circumstances Eksportfinans ASA 63 Petoro AS 103 and definitions 137 Cover Photo: © Statskog SF/Photo: Magnus Beyer Brattli 2 Foreword by the Minister There is a high level of direct state owner- challenge. I am therefore pleased that Nye companies to have the freedom in which ship in Norway. Twelve different ministries Veier shares its experiences in the report. to develop within the framework of their administer the state's ownership interests Another company that shared its expe- articles of association, without being mi- in 73 companies. In 25 of the companies, riences in the annual report is DNB, who cromanaged by the owner. This is how it the state’s objective as owner is to achieve talk about their work with diversity and must continue. the highest possible return over time competitiveness. As an owner, the state Even though the major parts of the (companies in categories 1-3), while in 45 expects that the companies have strate- ownership policy should remain in place, companies, the state’s goal is to achieve gies and measures for promoting gender further development is decisive to ensur- sectoral policy objectives as efficiently as equality and other diversity in their opera- ing good and sustainable management of possible (companies in category 4).1 The tions. Diversity of background and exper- state ownership. The government will state’s shareholdings in the companies in tise give different perspectives and can therefore present a new ownership re- which the state has the objective of achiev- provide a better and broader basis for port during 2019. Among other things, ing a return were valued at NOK 833 billion making good decisions. the ambition is to be clearer about objec- at the end of 2018. In June 2018, the state ended its long- tives and the reasons for state ownership The report will provide an overview of time ownership in SAS. The Ministry of in the companies. This makes it easier for the development of the companies and Trade, Industry and Fisheries sold the the companies and the state as owner to important events in the proceeding year. state’s remaining shares in the company follow-up the objectives. The expecta- The financial development in the compa- for NOK 597 million. In May 2019, the tions for the companies, which shall con- nies in which the state has the objective of ministry sold the state’s shares in Veter- tribute to achieving objectives and trans- achieving a return has varied. For the sev- inærmedisinsk Oppdragssenter for NOK parency about what is important to the en listed companies, the value-adjusted 45 million. The state will remain a signifi- state as an owner, will also be clarified in return, including reinvested dividends, cant owner in Norwegian business and the new report. was 3.2 per cent compared with 25.2 per industry, but the government will contin- I hope you will find this report informa- cent the previous year. The Oslo Stock Ex- ue to gradually reduce the state’s direct tive and useful! change Benchmark Index fell by 1.8 per ownership in companies for which there cent in 2018. Five of the seven companies is no reason for state ownership. © Marte Garmann with state ownership had negative re- The Norwegian state ownership model turns. For Norsk Hydro, the year was has been a success. I believe that the characterized by the demanding situation broad political consensus regarding the in Brazil. This was yet another reminder of framework for the ownership policy is an the scope and gravity of the challenges important reason for this. The state is fo- that the companies need to be prepared cussed on having a clear division of roles for. between owner and board and to exer- The achievement of objectives by each cise ownership in a responsible and pre- of the sectoral policy companies is pre- dictable manner, based on recognised sented in the report. When the state is an principles for good corporate govern- owner, it is expected that the board pre- ance. It is also vital that, as an owner, the pares clear objectives and strategies for state exercises its ownership authority the company within the framework of its through voting at general meetings and articles of association. Both quantifying by ensuring that the companies have and following-up effective achievement of good boards of directors. The Norwegian Torbjørn Røe Isaksen sectoral policy objectives can represent a state ownership model helps enable the Minister of Trade and Industry 1 Three companies were not categorised. 3 Scope and key figures The state's direct ownership ministries which manage the state’s own- the Storting - Diverse and value-creating The state's direct ownership includes ership interests can be found on page 136 ownership (Ownership Report). The com- companies in which the state's ownership of the appendix. panies are divided into four categories, interest is managed directly by the minis- based on the state’s ownership objectives: tries. The table on page 6 presents an Categorisation of the companies 1 Commercial objectives. overview of the 73 companies, classified The state has justifications and objectives 2 according to ministry. All the companies for its direct ownership. These are set out Commercial objectives and objective of are presented in the 2018 State Owner- in the presentation of the individual com- maintaining head office functions in ship Report. Contact details for the twelve panies in Report No. 27 (2013–2014) to Norway. Key figures 20181 Value of the state's shareholdings: NOK 833 billion Yara International 5 % Entra Unlisted companies 1 % in categories 1–3 DNB 11 % 16 % Telenor Norsk Hydro 19 % 4 % Yara International 5 % Entra Equinor Unoterte selskaper 1 % 59 % Listed companies Kongsberg Gruppeni kategori 1–3 DNB 2 % 11 % 16 % 84% Telenor Norsk Hydro 19 % 4 % Employees divided Return from listed companies: 3.2% according Other companies to company, Return on equity from unlisted Helse Sør-Øst RHF 20 % 22 % total companies in Categories 1–3: 12.2% 280,228 Dividend to the state: NOK 43 billion Operating revenues: NOK 1,437 billion Equinor Helse Nord 59 % RHF, 5 % Børsnoterte selskaper Kongsberg Gruppen Profit/loss for the year: 2 % NOK 140 billion Yara International 84% Norsk Hydro Capital contributions from/share 6 % 13 % purchases by the state: NOK 3.8 billion Helse Midt- Purchases by/subsidies from the state: Norge RHF © Øyvind Sætre / Gassco NOK 165 billion 6 % Telenor Posten 7 % Norge Equinor Helse Vest 1 Definitions on page 137. The figures are to be 5 % considered estimates that can be revised at a latter date. 7 % RHF 8 % 5 3 Commercial objectives and other spe- ated head office functions remain in Nor- State ownership of the companies in cifically defined objectives. way. For category 3 companies, the state category 4 has sectoral policy objectives. 4 Sectoral policy objectives. has commercial objectives and other soci- The state’s ownership of these compa- etal reasons for state ownership besides nies is usually managed by the ministries The main objective of the state’s commer- ensuring the head office remains in Nor- that are responsible for sectoral policy in cial ownership (companies in categories way.