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Will Equinor match Statoil’s success? Norway’s most valuable brands revealed

07 August 2018
This article is more than 5 years old.

· Statoil has dominated Norway’s brand landscape for years. Will Equinor automatically take its place as the nation’s most valuable and strongest brand?

· Telenor retains second place despite 5% drop in brand value

· Hydro is Norway’s fastest-growing brand this year, up 53% from 2017

View the full report on Norway’s 10 most valuable brands here

At the start of 2018 Statoil was Norway’s most valuable and strongest brand with a value of NOK65.4 billion and an elite AAA brand rating, according to the latest report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Statoil enjoyed a strong year of brand value growth due to higher global oil prices leading to increased revenue forecasts, and relatively strong workplace safety results over the last year.

Subsequently, the company changed names, to reflect its new brand strategy as a broad energy company, and not merely an oil company. The name change is just one demonstration of its new brand focus, with the increasing diversification of Equinor towards a low carbon future. This includes plans to develop long-term value on the Norwegian continental shelf and growing alternative energy sources. Last year, the company acquired its first major solar energy development (in Brazil) and now operates three offshore wind farms.

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands through the Brand Strength Index (BSI) – a balanced scorecard of factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. Along with the level of revenues, brand strength is a crucial driver of brand value.

According to these criteria, Statoil was also Norway’s strongest brand with a high score of 85.4 out of 100 and a corresponding AAA brand rating. The brand strength that Statoil has accumulated over the years, will be particularly important following the rebranding, especially in a year of geopolitical instability, with the possibility of changing OPEC policies and the increasing development of North American shale oil resources.

David Haigh, CEO of Brand Finance, commented:

“Name is an important part of brand, but it is not everything. Statoil became Norway’s most valuable and strongest brand because it was recognised as a trusted partner, delivering on its promise. Built upon the solid foundations of its oil business, the company now faces a challenge of transferring that equity to a new brand, encompassing a more diversified business portfolio. If the new brand is implemented well, it will help Equinor achieve long-term success, even if the rebranding process itself causes some initial erosion of the brand’s strength and value."

Telenor retains second place
In second place, Telenor (brand value down 5% to NOK54.5 billion) remained well ahead of third-ranked DNB (brand value up 3% to NOK26.9 billion). Telenor’s 2017 was a year of transformation as it realigned its corporate brand strategy to concentrate on the increasingly digital-focused demands of its customers. This was evident in Telenor’s customers using the company’s in-bound call centres 20% less than a year earlier, as customers now expect to obtain key information and make account changes online.

DNB, as Norway’s largest financial services group, grew its brand value modestly over the last year during a similar digital transformation. The company slightly improved its return on equity from 10.1% in 2016 to 10.8% last year as the Norwegian economy rebounded from the previous slump in oil prices. The brand benefited from strength across the broader economy, and DNB has a clear strategic plan to provide more services online.

Hydro is Norway’s fastest-growing brand
Hydro (brand value up 53% to NOK4.8 billion) is the fastest-growing brand in the Brand Finance Norway 10 league table. The acquisition of Extruded Solutions has enabled the brand to provide a vertically integrated aluminium supply chain, creating and extracting more value than by simply providing raw metal. Hydro also launched its new Hydro 75R product, which guarantees at least 75 percent recycled content reducing environmental impact – a key contribution to building a socially responsible brand in modern Norway.

Another brand to grow quickly this year is Norwegian (brand value up 14% to NOK7.8 billion). As recently as 2012, the airline operated only 68 aircraft but will grow its capabilities to almost 200 by the end of 2019. The brand has continued to grow despite unforeseen difficulties with Rolls-Royce components that have beset many airlines this year. Rapidly expanding into low-cost long-haul flying, the air carrier is also facing significant financial challenges in a world of increased oil and fuel prices.


Note to Editors

Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 10 most valuable Norwegian brands are included in the Brand Finance Norway 10 2018 league table.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is assessed through a balanced scorecard of factors (such as marketing investment, stakeholder equity, and business performance) and used to determine what proportion of a business’s revenue is contributed by the brand.

Additional insights, more information about the methodology as well as definitions of key terms are available in the Brand Finance Norway 10 2018 report.

Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.

Data compiled for the Brand Finance league tables and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.

Media Contacts

Penny Erricker
Communications Executive
Brand Finance

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.


Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

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