Norwegian Oil Fund generates 38 billion euros in profit

In particular, share price gains brought the sovereign wealth fund, which manages the country’s oil revenues, significant growth in the first quarter. It is now worth the equivalent of around 1.1 trillion euros.

Oil platform off the coast of Norway

Dhe continued price rally on the stock markets this year should please many private investors, but also large investors. For example, the Norwegian state fund reported a profit of 38 billion euros in the first quarter. The AFP news agency said that the main cause was stock gains in Oslo on Wednesday. The value of the sovereign wealth fund rose to 11 trillion Norwegian kroner (equivalent to around 1.1 trillion euros) by the end of March.

The share gains were mainly due to the price premiums in the finance and energy sectors, said the fund’s vice chairman, Trond Grande. The real estate sector has also contributed. Fixed-income securities, on the other hand, would have suffered price losses.

The fund was set up by the Norwegian government in the 1990s from profits from the state oil industry as a safeguard for future generations and is also known as the oil fund. It is fed by income from Norwegian oil and gas production and is administered by the central bank on behalf of the Ministry of Finance.

Sometimes strong fluctuations

The previous year showed how much the fund can fluctuate in value. The corona pandemic initially caused a loss of 18 billion euros in the first half of the year. At the end of the year, the world’s largest sovereign wealth fund, thanks to the price gains on the stock exchanges, finally rose by a total of around 102 billion euros. With a plus of 42 percent, investments in technology stocks performed best. All in all, stocks produced a return of a good 12 percent.

At the end of the year, the fund was worth around EUR 1.046 trillion, according to a statement. Around 73 percent of the assets were invested in stocks and around 25 percent in bonds.