Omega in the local newspaper Grannar

Read about Omega in Grannar, the local newspaper for the Etne and Vindafjord region. The article focuses on how Omega has prepared for a downturn in the Norwegian market, and the company's strategy for future development.

Omega rigging for new markets

In 2015, the billion kroner concern, Omega AS, was affected by the downturn in the Norwegian oil market. Now, they work hard towards gaining entry into new markets.  

By Torstein Nymoen

Published: 31.03.16

The concern, which mainly delivers project management systems and personnel to the industry and has their main office in Ølensvåg, had in 2015 approximately the same turnover as the year before of about NOK 1,5 billion. However, looking at the mother company, Omega AS, one can see a drop in turnover; from NOK 1,6 billion in 2014 to NOK 982 billion last year. One must go back to 2011 to find a lower turnover for the company, who up until the previous year, have experienced a continued upturn. The consolidated income shows a result of NOK 37,2 million for the previous year, which is down from NOK 80,7 million in 2014. The mother company's results came to NOK 27,5 million, down from NOK 72,5 million from the year before. 

"Considering the major downturn in activity in the oil sector, which is our main sector, we are satisfied with keeping our turnover on the concern level," says CEO Petter Aalvik. 

Omega AS

Omega (concern)

(NOK mill) 2015 2014
Revenue 1 566.7 1 552.5
Operating profit 73.9 37.4
Net financial 6.85 -0.18
Result before taxes 80.7 37.3
Profit 58.9 22.5

Prepared for downturn in Norway

He says that the company prepared for a downturn here in Norway, by expanding internationally. Omega has several large assignments especially in Canada, where they because of climatic reasons are still building platforms in concrete. They have also had large contracts within the hydroelectric power industry. In Houston, USA, there has been high activity with deliveries tied to refineries. Pims, Omega's software division,contributed together with international subsidiary companies to a greater part of the turnover and result than what they have earlier; a trend that the board anticipates will continue this year.      

The other business area, Jobs, offers skilled consultants to the oil and gas industry within several disciplines in project management and operations. NOK 1,26 billion of the total turnover for 2015 came from consultancy services, NOK 216 millions from the system and data services, NOK 73 million from building and construction services and other business areas. In geographical terms, NOK 1,1 billion in turnover came from Norway, NOK 30,3 billion from Europe, and the remaining NOK 435 millions from the rest of the world.  

Highlight in February 

The number of new Omega projects in Norway has decreased over longer time.

"As the access to new projects has decreased rapidly, we have experienced that projects we have worked with for a long time have been discontinued," explains Aalvik.

However, in February, they hit a highlight.

"That was the first month in a long time that we registered more new projects than the number of projects that were being discontinued. It remains to be seen whether this was just a gust," he says. 

In 2016 it is all about adapting further to the market.  

Facsimile of the story about Omega in local newspaper, Grannar. Printed on 31.03.16.

"When our clients press down the costs it affects our margins; we are expecting a lower result in 2016 than the previous year," says Aalvik.  

Fewer employees

The number of employees in Norway has during one year, been reduced by 200. It has not been pleasant, but it has happened without trouble, he says. 

In Norway Omega has approximately 600 employees, 194 of these are tied to a project in the Haugaland region. 

"We have not reduced staff among those who are working with sales and with getting entry to new markets. Our biggest focus is to find new jobs for our people," he says.  

Abroad, Omega has grown by almost as much as it has decreased here in Norway. Based on the numbers from yesterday, a total of 934 people work in the Omega concern. At the end of 2015, the number was 961.

"Where is Omega in two years?" 

"At that time, we hope to be past the bottom of the oil market and that things are on their way to getting better. For our part, we will probably see a growth on a broader basis as we now get entry into new markets," he says.

He points out that they see growth within railway, powerline, wind power, and aluminum. Omega is among the companies who have received assignments tied to Hydro's new pilot project for the production of almunimun on the island Karmøy. Omega plans to increase the office space in Ølensvåg.

"We are working on preparing the construction project, and we will probably set the project on hold until we see a better market," says Aalvik.

Received agreement with Lundin

Omega AS could yesterday announce that they received a frame agreement for consultancy services with the oil company Lundin Norway AS. Omega has for several years delivered consultancy services to Lundin, as well as the project management system, Pims, which has been utilized in the construction of the Edvard Grieg field.  

The new agreement is comprehensive and covers all technical disciplines, and project management positions. The frame agreement spans four years, with the option of extending for another two years, states the company in a press release to the media.