StatoilHydro uses ROACE to measure the return on capital employed, regardless of whether the financing is through equity or debt. In the company's view, this measure provides useful information, both for the company and for investors, regarding performance during the period under evaluation. We make regular use of this measure to evaluate our operations. Our use of ROACE should not be viewed as an alternative to income before financial items, income taxes and minority interest, or to net income, which are measures calculated in accordance with generally accepted accounting principles or ratios based on these figures.

ROACE was 21.3% in 2008, compared with 17.9% in 2007 and  22.9% in 2006. The increase from last year was mainly due to higher prices for both liquids and natural gas, an increase of volumes of natural gas sold and an increase in net financial loss.

Adjusted for the effects of restructuring costs and other costs arising from the merger, ROACE was 21.1% in 2008, compared with 19.9% in 2007 and 22.9% in 2006. ROACE is defined as a non-GAAP financial measure.