Gross rates of return are available in the Annex tables of this release. Capital consumed refers to the decline in the current value in the stock of fixed assets (for example, due to depreciation). “Net” refers to the rate of return after having accounted for the current value of capital consumed and capital stocks. The rate of return is calculated as the economic gain (profit) shown as a percentage of the capital used in production. Net rate of return is used as the measurement of company profitability throughout this bulletin, except in the international comparisons section. Revisions to the net rates of return for PNFCs have been made back to Quarter 1 (Jan to Mar) 2017 and are consistent with the Quarterly national accounts, published on 28 September 2018. For these reasons, the net rate of return for UKCS companies is not directly comparable with those for other sectors. They also report high levels of depreciation of their fixed assets.

Owing to the nature of the industry, UKCS companies tend to be very capital-intensive and so require high levels of capital investment to operate. This only includes companies operating on the UK continental shelf – the area where the UK claims mineral rights beyond the territorial waters. UKCS companies engage in oil and natural gas exploration or extraction. Non-UKCS companies are further split into manufacturing companies, companies providing non-financial services and other industries (including construction, electricity and gas supply, agriculture, mining and quarrying). PNFCs comprise UK continental shelf (UKCS) companies and other non-financial UK (non-UKCS) companies.

This bulletin provides estimates of the profitability of UK-based private non-financial corporations (PNFCs). Things you need to know about this release

Change quark 2018 margins