European Economic Impact Report 2019 REPORT Neptune … · Impact Report 2019 REPORT OUR ECONOMIC...
Transcript of European Economic Impact Report 2019 REPORT Neptune … · Impact Report 2019 REPORT OUR ECONOMIC...
European Economic Impact Report
2019 REPORT
Neptune Energy’s impact on the European economy2019 REPORT
European Economic Impact Report
2019 REPORT
OVERVIEW
How we contribute to the economy
OUR DIRECT IMPACT
The people we employ + the GDP our operations generate.
The money we spend with suppliers who employ people, generate GDP and use other suppliers.
Wages spent by employees – ours and our suppliers – in the wider economy, generating more GDP and jobs.
Direct + indirect + induced = our total economic impact.
OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT
European Economic Impact Report
2019 REPORT
OUR EUROPEAN ECONOMIC IMPACT IN 2019
OUR DIRECT IMPACT
We directly generated $1.4 billion in gross value added to GDP across the UK, Netherlands, Norway and Germany.
We employed around 1,300 people.
We collected and paid more than $400 million in taxes. The majority of this was direct tax to the Norwegian government.
Note: Losses brought forward extinguished taxable profits in the UK. In Germany, no corporate tax was payable as the company generated taxable losses for the period.
We spent $1.1 billion on operational and capital goods and services across a range of industries.
This indirectly supported an estimated $984 million in gross value added to GDP across the UK, Netherlands, Norway and Germany.
We estimate it also indirectly supported 5,700 other jobs.
We spent 59% of capital expenditure on goods and services to develop and operate our oil and gas facilities, such as drilling equipment.
We spent $197 million on employee compensation payments and estimate $90 million of that was spent in the consumer economy.
Money spent by our suppliers’ employees supported $420 million in gross value added to GDP, as well as 4,500 jobs.
We supported an estimated $2.8 billion in gross value added to GDP in the UK, Netherlands, Norway and Germany. That’s the equivalent of 0.67% of Norway’s total GDP.
We supported a total of 11,500 jobs.
That’s the equivalent of supporting eight jobs for every Neptune employee.
OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT
European Economic Impact Report
2019 REPORT
OUR ECONOMIC IMPACT IN THE UK
Neptune in the UK• We are an active offshore operator in the UK,
with substantial North Sea interests in gas production, subsea development and exploration.
• We operate the Cygnus gas field, the UK’s largest single producing field, which supplies enough gas to support the equivalent of 1.5 million homes.
• We are also capable of supplying around 12% of domestic gas needs via our operated Cygnus and Gjøa platforms.
*based on an implied GVA multiplier of 2.5
UK in numbers
Gross value added to UK GDP:
$438 million
For every Neptune employee in the UK, around
16 jobs are supported elsewhere in
the domestic economy
Every $1 GVA we directly generated supported
another $1.5 elsewhere in the UK economy*
Total number of jobs:
2,800
$ MILLION
Gross value added (GVA) contribution to GDP
Employment
500 3,000
2,500
2,000
1,500
500
1,000
300
400
200
50
450
250
100
350
150
0 0
JOBS
161
174
53
94
118 438
605
833
1,180 2,779
Direct G
VA
Direct e
mploym
ent
Indirect G
VA - OPEX
Indirect e
mploym
ent
- OPEX
Tota
l GVA
Tota
l em
ployment
Induced GVA
Induced employm
ent
Indirect G
VA - CAPEX
Indirect e
mploym
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- CAPEX
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European Economic Impact Report
2019 REPORT
2,500
OUR ECONOMIC IMPACT IN NORWAY
Neptune in Norway• We are the fifth largest independent operator on the Norwegian
continental shelf.
• Our Norwegian fields make up the largest proportion of our portfolio.
• We have an interest in 68 licences, of which we operate 13.
• Gjøa is our largest operated asset and was the first floating production platform in the world to be powered sustainably by onshore facilities.
*based on an implied GVA multiplier of 1.8
Norway in numbers
Gross value added to Norway GDP:
$1.6 billionThis is the equivalent of 0.39% of Norway’s
total GDP in 2019
For every Neptune employee in Norway, around
6 jobs are supported elsewhere in
the domestic economy
Every $1 GVA we directly generated supported
another $0.8 elsewhere in the Norwegian economy*
Total number of jobs:
2,300
Norway had the highest spend on
capital goods of all four countries. We spent the majority on drilling rigs with local suppliers
A substantial proportion of Norway’s direct GVA went into
taxes paid to the Norwegian government
$ MILLION
Gross value added (GVA) contribution to GDP
Employment
1,800
2,000
1,500
500
1,000
1,000
1,400
600
1,600
800
200
1,200
400
0 0
JOBS
330
875
60
523
126 1,585
401
523
1,027 2,282
Direct G
VA
Direct e
mploym
ent
Indirect G
VA - OPEX
Indirect e
mploym
ent
- OPEX
Tota
l GVA
Tota
l em
ployment
Induced GVA
Induced employm
ent
Indirect G
VA - CAPEX
Indirect e
mploym
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- CAPEX
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European Economic Impact Report
2019 REPORT
OUR ECONOMIC IMPACT IN THE NETHERLANDS
Neptune in the Netherlands• We are the largest offshore operator in the Dutch sector of the North Sea.
• We operate 45 licences and maintain a large infrastructure of 29 offshore facilities, including four major production complexes.
• We are participating in a pilot project to create the world’s first offshore green hydrogen production plant. The project will integrate three energy systems on one platform: offshore wind, offshore gas and hydrogen.
*based on an implied GVA multiplier of 1.9
Netherlands in numbers
Gross value added to Dutch GDP:
$400 million
For every Neptune employee in the
Netherlands, around
8 jobs are supported elsewhere in
the domestic economy
Every $1 GVA we directly generated supported
another $0.9 elsewhere in the Dutch economy*
Total number of jobs:
3,000
The Netherlands had the highest spend on
operational goods and services of all four countries, mainly driven by helicopter transport and contractor costs.
$ MILLION
Gross value added (GVA) contribution to GDP
Employment
500 3,500
3,000
2,500
2,000
1,500
500
1,000
300
400
200
50
450
250
100
350
150
0 0
JOBS
337
232
75
50
76 434
996
731
950 3,014
Direct G
VA
Direct e
mploym
ent
Indirect G
VA - OPEX
Indirect e
mploym
ent
- OPEX
Tota
l GVA
Tota
l em
ployment
Induced GVA
Induced employm
ent
Indirect G
VA - CAPEX
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- CAPEX
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European Economic Impact Report
2019 REPORT
OUR ECONOMIC IMPACT IN GERMANY
Neptune in the Germany• Neptune businesses have had a presence in Germany for 130 years. Our
main assets are concentrated in the north German basin in the Altmarkand the Rhine Valley.
• Our diverse gas and liquid production portfolio includes fields at differentstages of their lifecycle.
• We supply 6.4% of Germany’s natural gas and 13% of its produced oil.
*based on an implied GVA multiplier of 3.3
Germany in numbers
Gross value added to German GDP:
$329 million
For every Neptune employee in Germany, around
6 jobs are supported elsewhere in
the domestic economy
Every $1 GVA we directly generated supported
another $2.3 elsewhere in the German economy*
Total number of jobs:
3,500
$ MILLION
Gross value added (GVA) contribution to GDP
Employment
350 4,000
3,500
3,000
2,500
2,000
1,500
500
1,000
300
200
50
250
100
150
0 0
JOBS
477
100
53
77
100 329
696
968
1,331 3,473
Direct G
VA
Direct e
mploym
ent
Indirect G
VA - OPEX
Indirect e
mploym
ent
- OPEX
Tota
l GVA
Tota
l em
ployment
Induced GVA
Induced employm
ent
Indirect G
VA - CAPEX
Indirect e
mploym
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- CAPEX
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ce: O
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