Accounting policy
Investments in unlisted renewable energy infrastructure (Unlisted infrastructure) are made through subsidiaries of Norges Bank, exclusively established as part of the management of the GPFG. Subsidiaries presented as Unlisted infrastructure in the balance sheet are measured at fair value through profit or loss. See note 2 Accounting policies for further information.
The fair value of unlisted infrastructure is determined as the sum of the GPFG’s share of assets and liabilities in the underlying subsidiaries, measured at fair value. For further information, see note 8 Fair value measurement.
Changes in fair value are recognised in the income statement and presented as Income/expense from unlisted infrastructure.
The following accounting policies apply to the respective income and expense elements presented in table 7.1:
Interest is recognised when it is accrued.
Dividends are recognised when the dividend is formally approved by the general meeting or equivalent decision-making body, or is paid out in accordance with the company’s articles of association.
Table 7.1 Income/expense from unlisted infrastructure
Amounts in NOK million 2021 2020
Payments of interest and dividend from unlisted infrastructure 80 -
Unrealised gain/loss1 1 118 -
Income/expense from unlisted infrastructure before foreign exchange gain/loss 1 198 -
1 Accrued interest and dividends which are not cash-settled are included in Unrealised gain/loss.
Table 7.2 Changes in carrying amounts unlisted infrastructure
Amounts in NOK million 31 Dec. 2021 31 Dec. 2020
Unlisted infrastructure at 1 January - -
Net cash flow to/from investments in unlisted infrastructure 13 375 -
Unrealised gain/loss 1 118 -
Foreign exchange gain/loss -207 -
Unlisted infrastructure, closing balance for the period 14 287 -
Cash flows between the GPFG and subsidiaries presented as Unlisted infrastructure
The GPFG makes cash contributions to subsidiaries in the form of equity and long-term loan financing, to fund investments in renewable energy infrastructure. Net income in the underlying infrastructure companies can be
distributed back to the GPFG in the form of interest and
dividend as well as repayment of equity and long-term loan financing. There are no significant restrictions on the distribution of interest and dividend from subsidiaries to the GPFG.
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Tables 7.3 specifies cash flows between the GPFG and subsidiaries presented as Unlisted infrastructure, related to ongoing operations and other activities.
Table 7.3 Cash flow unlisted infrastructre
Amounts in NOK million 2021 2020
Interest and dividend from ongoing operations 80 -
Repayments of intercompany loans from ongoing operations 648 -
Cash flow from ongoing operations unlisted infrastructure 728 -
Payments for new infrastructure investments -14 023 -
Cash flow to/from other activities unlisted infrastructure -14 023 -
Net cash flow unlisted infrastructure1 -13 295 -
1 Shown in the statement of cash flows as Receipts of interest and dividend from unlisted infrastructure and Net cash flow to/from investments in unlisted infrastructure.
Net income in the underlying infrastructure companies which is distributed back to the GPFG in the form of interest and dividends, is presented in the statement of cash flows as Receipts of interest and dividend from unlisted
infrastructure. In 2021 this amounted to NOK 80 million (NOK 0 million in 2020).
Cash flows between the GPFG and infrastructure
subsidiaries in the form of equity and loan financing, as well as repayment of these, are presented in the statement of cash flows as Net cash flows to/from investments in unlisted infrastructure. In 2021 this amounted to NOK -13 375 million (NOK 0 million in 2020).
A net cash flow from the GPFG to subsidiaries will result in an increase in the value of Unlisted infrastructure in the balance sheet, while a net cash flow from subsidiaries to the GPFG will result in a decrease.
Underlying infrastructure companies
Infrastructure subsidiaries have investments in other non-consolidated, unlisted companies. For further information, see note 16 Interests in other entities.
Principles for measurement and presentation
The following principles apply for the respective income and expense elements presented in table 7.4:
Income from the sale of renewable energy is recognised at time of delivery. Net income from the sale of renewable energy mainly comprises accrued income from power sales, less costs relating to the operation and maintenance of infrastructure assets.
Transaction costs and fees from purchases and sales of renewable energy infrastructure are incurred as one-off costs and expensed as incurred.
Table 7.4 specifies the GPFG’s share of net income generated in the underlying infrastructure companies, which is the basis for Income/expense from unlisted infrastructure presented in table 7.1.
Table 7.4 Income from underlying infrastructure companies
Amounts in NOK million 2021 2020
Net income from sale of renewable energy 747 -
Operating costs in wholly-owned subsidiaries1 -7 -
Operating costs in joint ventures 9 -
Tax expense -160 -
Net income from ongoing operations 589 -
Unrealised gain/loss2 639 -
Transaction costs and fees from purchases and sales -31 -
Net income underlying infrastructure companies 1 198 -
1 Operating costs in wholly-owned subsidiaries are measured against the upper limit from the Ministry of Finance, see note 12 Management costs for more information.
2 Unrealised gain/loss presented in table 7.1 includes net income in the underlying infrastructure companies which is not distributed back to the GPFG, and will therefore not correspond to Unrealised gains/loss presented in table 7.4.
Table 7.5 specifies the GPFG’s share of assets and liabilities in the underlying infrastructure companies, which comprises the closing balance for Unlisted infrastructure as presented in table 7.2.
Table 7.5 Assets and liabilities underlying infrastructure companies
Amounts in NOK million 31 Dec. 2021 31 Dec. 2020
Wind farm 14 290 -
Net other assets and liabilities1 -3 -
Total assets and liabilities underlying infrastructure companies 14 287 -
1 Net other assets and liabilities comprise cash, tax and operational receivables and liabilities.
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