More Export Credit loans to Clean Technology

Export Credit Norway disbursed NOK 3.3 billion in loans in the third quarter of 2015 (Q3 2014: NOK 8.8 billion). While the application volume relating to offshore industries is falling as expected, the number of applications linked to industry and clean technologies is increasing strongly.

In the third quarter, Export Credit Norway received 32 applications (Q3 2014: 25) from companies in the industry and clean technologies sector. The total application volume was NOK 8.5 billion, more than double the figure for the same period last year (NOK 3.7 billion).

INDUSTRY AND CLEAN TECHNOLOGY INCREASE

Export Credit Norway CEO Jarle Roth points out that the increase in applications and application volumes cannot be attributed to a “green shift”:

“The last two quarters have seen a welcome and significant increase in the number of applications relating to industry and clean technologies. The rise is due to a combination of a depreciated Norwegian krone, more intensive marketing and a simplified application process for this sector. Still, the most important task remains: applicants have to win the contracts they are bidding for,” says Roth.

In Q3 2015, Export Credit Norway received 62 loan applications (Q3 2014: 68) representing a total application volume of NOK 19.6 billion (Q3 2014: NOK 31.2 billion).

Applications from the oil and gas equipment sector have traditionally related to drilling rigs and drilling ships. In the third quarter, however, Export Credit Norway experienced a shift in application subject matter, with a new focus on subsea equipment and other new-field development technology. Although the number of applications received in Q3 2015 was on a par with Q3 2014, the application volume has declined by 34%.

In the maritime sector – ship financing and ship equipment – both the number of applications and the application volume declined compared to Q3 2014, by 34% and 74%, respectively.

OFFHSORE MARKET WEAK

“We expect the offshore market to remain weak for the rest of 2015 and all of 2016. Yards, offshore shipping companies and equipment suppliers face challenging market conditions. We appreciate the seriousness of the situation, and will be a constructive partner, engaging in dialogue with our customers to find beneficial, tailored solutions,” says Jarle Roth.

At the end of the third quarter, Export Credit Norway’s lending balance totalled NOK 74.6 billion (Q3 2014: NOK 54.5 billion), an increase of 37% on the same period last year. The depreciation of the Norwegian krone, particularly against the US dollar, increased the lending balance by approximately NOK 3.8 billion during the quarter.

As at 30 September, 74% of the company’s lending portfolio was guaranteed by GIEK. The remainder was guaranteed by Norwegian banks (13.1%) and foreign banks (12.9%).

Repayments in Q3 2015 amounted to NOK 2.2 billion, including NOK 558 million in early loan redemptions. Interest income amounted to NOK 337 million.

Download the quarterly report for Q3 2015 here

Associated companies:


Related news

Latest news

New contract: Windcat 41 - no 17 in the Servogear series

Servogear announces the signing of a new contract with Windcat Workboats BV for the delivery of Servogear Controllable Pitch Propellers (CPP)  for their new vessel Windcat 41. 

Seacat Enterprise to be launched January 12th

Seacat Services, is preparing to launch its first High Speed Utility Vessel (HSUV), Seacat Enterprise at January 12th.

Norsafe Signs Contract with the Swedish Coast Guard (KBV)

On Wednesday 21st December, Norsafe signed yet another new contract with the Swedish Coast Guard (KBV) to deliver nine new Magnum 750 MKII boats.

A Unique Second-generation Tomograph is Developed

A new gamma-ray tomograph designed to image up to 4” diameter pipes, is developed by CMR Prototech for the Saskatchewan Research Council (SRC) in Canada.

Sohome launches a new website

Sohome has launched a new website that makes it easier to find key information. 

Sohome AS receives orders for Johan Sverdrup Project

Sohome AS is proud to be a sub-contractor to Intelecom AS for the Johan Sverdrup Project. 

New 55'' Ultra High Definition Chart and Planning table passes Type Approval testing

Most advanced maritime display system ever produced, the 55'' Ultra High Definition Chart & Planning table, enables Integrated Bridge System manufacturers to develop new multi-data solutions.

Norsafe's experience in the Polar Code Pays Off

In readiness for the introduction of the Polar code, Norsafe has become the first LSA supplier to have executed full scale tests and trials 

Øglænd System Group winner of Business of the Year Award

Øglænd System Group won the Business of the Year Award in the Stavanger-region 2016.