The board is satisfied with the financial results from research activities for 2015, taking into consideration the market difficulties in oil and gas.
Following the implementation of measures in the form of downsizing and other cost savings, with positive effects for financial results for 2015, the board is also of the opinion that the company has a better adapted costs structure at the start of 2016. This also includes changes in the pension plan from defined benefit to defined contribution, although the winding up of the defined benefit plan gave expenses of an extraordinary nature in 2015.
In spite of the challenges on the market side, activities in Energy have also made a positive contribution to the year’s financial results for 2015.
The market situation for Ullrigg Drilling and Well Centre has been difficult in 2015. Lower activity levels have meant a fall in financial results, but there is still a positive contribution to annual financial results.
Operational and financial difficulties in IRIS Environment continued to mean negative financial results in 2015, although somewhat less so than in 2014.
Activities in IRIS Social Science have shown a certain fluctuation over time and for 2015 there is a small negative contribution to the annual financial results, at approximately the same level as in 2014.
The commercialisation of research results from both IRIS and the University of Stavanger is an important part of our value creation. The results of the commercialisation activities will naturally vary somewhat from year to year, but in the board’s opinion development over time is good.
Sale of technological rights and profit/loss on the sale of shares amounted to NOK 10.3 million in 2015 (NOK 35.0 million in 2014). Results from investment in associated companies amounted to NOK 27.5 million in 2015, which must be seen in the context of positive development in equity mainly connected with Calysta Inc. (USA).
Operating revenues for the IRIS group in 2015 amounted to NOK 324 million, of which sales revenues accounted for NOK 312 million. Sales revenues were reduced by NOK 12 million (4 per cent) compared with 2014. The accounts of the IRIS group show a profit before tax expenses of NOK 23.5 million, against NOK 27.6 million in 2014.
The 2015 accounts of the parent company IRIS show operating revenues and profit before tax expenses of NOK 342 million (NOK 331 million in 2014) and NOK 19.5 million (NOK 16.3 million in 2014) respectively. The results for IRIS include group contributions from subsidiaries of NOK 15.9 million, which have been entered under other operating revenues.
Equity in the IRIS group amounted to NOK 168 million per 31 December 2015, which represents an equity ratio of 52 per cent. Equity and equity ratio in the parent company IRIS were NOK 153 million and 48 per cent respectively.
Working capital in the IRIS group fell by NOK 1.9 million in 2015 and amounted to NOK 43.6 million per 31 December 2015.
Working capital in the parent company IRIS amounted to NOK 35.6 million per 31 December 2015, compared with NOK 33.1 million in 2014.
Group contributions/liquidation proceeds received from subsidiaries amounted to NOK 17.0 million, while group contributions of NOK 19.3 million were given to subsidiaries.
Accounts receivable for the associated company SEKAL of NOK 9.7 million, including accumulated interest, have been converted into a convertible loan per 31/12/2015. Total investment in equipment, laboratories and plant etc. for 2015 was NOK 14.3 million, an increase of NOK 3.6 million over the previous year. Of the total investments, NOK 5.6 million were self-financed, NOK 5.0 million were financed by infrastructure grants from the Research Council and NOK 3.7 million were project-financed. Self-financed investments show a small decline from 2014.
The board of directors believes that the annual accounts give a true picture of the company’s assets and liabilities, financial position and results.