SDFI and Petoro annual report 2023
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Petoro AS - Notes

Note 1 - Government contribution and other revenue

NOK 304.2 million was appropriated for operation of Petoro AS, excluding VAT, in 2023. This amount is recorded as a contribution from the Norwegian state.
Other revenue primarily relates to services in connection with negotiation management in the SDFI portfolio.


Note 2 - Deferred revenue

The change in deferred revenue recorded in the income statement comprises deferred revenue related to NOK 0.06 million in investments made during 2023, as well as NOK 1.0 million in depreciation of investments made during the year and in earlier years, cf. Note 5.


Note 3 - Payroll expenses, number of employees, remuneration, etc.

Payroll expenses (All figures in NOK 1 000)20232022
Directors' fees2,1742,017
Liability insurance for the Board (applies to the entire Board of Directors)240203
Payroll tax23,47918,347
Pension costs (see Note 10)32,01825,613
Other remuneration3,5644,939
Employees at 31 December7370
Employees with a signed contract who had not started work at 31 Dec.15
Average number of full-time equivalents employed71.568.4
Please refer to Petoro's executive pay report for 2023 for additional information about remuneration for executive management and the Board.


Note 4 – Financial items

All figures in NOK 1,00020232022
Financial income
   Interest income12,3306,146
   Currency gain57210
Financial expenses
   Interest expenses2-
   Currency loss232277
Net financial result12,1536,079

Note 5 - Tangible fixed assets

All figures in NOK 1,000Fixtures and fittingsOperating equipmentICTTotal
Acquisition cost at 1 Jan. 20235,19610,93041,42157,548
Additions fixed assets-57-57
Disposal fixed assets/obsolescence----
Acquisition cost 31 Dec. 20235,196 10,98741,42157,605

Accumulated depreciation at 1 Jan. 20234,79610,03040,36255,188
Reversed accumulated depreciation----
Depreciation for the year125496374995
Accumulated depreciation at 31 Dec. 20234,92110,52640,73656,183

Book value at 31 Dec. 20232754616861,422
Economic lifeLease term3/5 years3 years
Depreciation scheduleStraight lineStraight lineStraight 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 253 million, including NOK 10 million in withheld tax and funds to cover unsecured pension obligations in the amount of NOK 228 million.


Note 8 - Share capital and shareholder information

The company's share capital at 31 December 2023 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 capitalOther equityTotal
Equity at 1 Jan.10,00018,41628,416
Net profit6,7536,753
Equity at 31 Dec.10,00025,16935,169

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 2023, 53 employees are covered by the defined contribution scheme, while 20 employees are covered by the transitional scheme.
Net pension cost (figures in NOK 1,000)20232022
Present value of benefits earned during the year10,94512,083
Interest expense on pension obligation10,7566,765
Return on pension plan assets(6,577)(4,231)
Recorded change in estimates4,321372
Payroll tax1,2621,427
Pension cost, defined benefit scheme20,70716,416
Pension cost, defined contribution plan incl. payroll tax11,3119,197
Net pension cost32,01825,613
Capitalised pension obligation20232022
Estimated pension obligation at 31 Dec.387,844366,081
Pension plan assets (market value)(143,500)(135,500)
Net pension obligations 244,343230,581
Unrecorded change in estimates(61,632)(45,955)
Capitalised pension obligation182,711184,626
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.
Discount rate3.10%3.00%
Expected return on plan assets4.80%4.70%
Expected increase in pay3.50%3.50%
Expected increase in pensions1.80%1.50%
Expected adjustment of the National Insurance Scheme's Basic Amount (G)3.25%3.25%

Note 11 - Other current liabilities

Other current liabilities generally consists of deposits for incurred costs, salaries owed, holiday pay, withheld taxes and social security and appropriation invoiced in advance for the 1st quarter of 2024.


Note 12 - Auditor’s fees

The company's chosen auditor is KPMG AS. Fees charged for ordinary external auditing of the consolidated financial statements  in 2023 totalled NOK 0.4 million. Consultancy services from KPMG totalling NOK 7,000 have also been expensed in connection with assistance related to the digital collaboration solution.
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. PricewaterhouseCoopers AS (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 0.9 million for financial auditing and NOK 0.6 million for internal auditing in 2023. Costs have also been expensed for invoiced services from PwC within joint venture auditing totalling NOK 0.8 million.


Note 13 - Leases

Petoro AS entered into a lease with Smedvig Eiendom AS for office premises in the autumn of 2003. Petoro AS chose to exercise the last option in the lease from 2021. The remaining lease term is now 2 years. Rent for the year totalled NOK 12.6 million, which included all operating and shared 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. The accounting fee carried to expense for Azets in 2023 for accountancy for the SDFI amounted to NOK 11 million.
Petoro AS has had a contract with Tietoevry ASA concerning the provision of IT operations services for office support and administrative solutions as well as consultancy services leading up to 31 December 2023. Costs under the IT operations agreement for 2023 amounted to NOK 14.2 million. New agreements for IT operations services have been entered into as of 1 January 2024. 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 will then be automatically renewed in one-year increments. Costs under the operations contract for petroleum technology solutions amounted to NOK 9 million in 2023.


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 2023 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.