We are witnessing a large-scale industrial transition to renewable energy and green technology. It is happening both in maritime and land-based industries. Meanwhile, markets are becoming more volatile. We encounter both trends through increased demand for state guarantees for export in 2018, according to Wenche Nistad, CEO of GIEK.
Applications to GIEK mirror international demand
In 2018 GIEK issued new guarantees worth NOK 14 billion, a 17 percent increase from 2017. Adding to this was an even larger increase in new applications, 21 percent. GIEK outstanding guarantee liabilities at the end of 2018 totalled NOK 88 billion, and GIEK made a total profit of NOK 1 billion.
In 2018 our guarantees contributed to the financing of new industrial projects in the maritime industry, renewable energy and environmental technology at home and abroad, says Nistad.
Norwegian products and services were exported to 32 countries on all continents.
Rising tensions highlight the role of ECAs
Rising international tensions affect external trade. Along with other export credit agencies (ECA) around the world, GIEK is partaking in a regulated system to secure export financing and maintain international trade. In 2018 GIEK received new applications for NOK 47 billion, and anticipates that ocean based industries like fisheries and fish farming, cruise vessels and low-emission ship technology will increase as part of GIEK’s portfolio, together with renewable energy.
Offshore oil and gas
The export of vessels and technology for offshore oil and gas constituted the bulk of GIEK-guaranteed deals until 2016. These guarantees still dominate GIEK's outstanding liabilities, although the share was reduced from 79 to 66 percent during 2018. The outlook for the oil and gas industries is improving, but the oversupply of offshore service vessels is still a problem.
We expect more work on debt restructuring going forward. Working with the industry, we seek solutions that combine our needs as creditors with those of the industry, Nistad concludes.
This file is to be updated with a brief version of the complete Norwegian report.