Huge returns spurs massive growth for Norway's oil fund

A return of 13.7% on the fund’s equity investments pushes the half-year result to USD 143bn.
Photo: Staff
Photo: Staff
RITZAU/REUTERS

Norway’s oil fund ended the first half of 2023 with a profit of NOK 1501bn, according to the oil fund’s accounts, reports news agency Reuters.

The amount corresponds to USD 143bn.

The oil fund invests the Norwegian state’s profits from the country’s oil and gas production and is the world’s largest equity investor. It owns 1.5 percent of all listed shares in the world.

In the first six months of the year, the investments have secured a significant return for the Norwegian oil fund.

”The fund’s equity investments had a strong first half after a weak 2022. Equity investments returned 13.7% for the period,,” the Norwegian oil fund writes in its financial statements.

Technology companies in particular have generated strong returns.

The fund’s investments in this type of company returned 38.6% in the first half of 2023.

”The sector benefited from strong demand for new artificial intelligence solutions from the biggest internet and software companies and their semiconductor suppliers,” the fund writes in the report.

The fund also encourages the technology companies in its portfolio to invest in artificial intelligence in general, as this is where the development potential lies.

This is according to Nicolai Tangen, CEO of the Norwegian Oil Fund.

”We of course expect them to use AI for the best possible benefit of the business.”

”AI is a huge opportunity for companies and for society, but we need to make sure that it is used in the right way,” he says.

The total value of the Norwegian oil fund is USD 1.4 trillion.

The fund has shares in 9200 companies worldwide.

(Translated using DeepL with additional editing by Simon Øst Vejbæk)

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