An unparalleled year

2019 marked a record year for Omega, whereby the group performed well in Norway and around the world. Omega has steadily adjusted to new market segments in the face of fluctuations in oil prices and challenges in various markets.

In 2019, the Omega Group, consisting of 20 companies worldwide, achieved a profit of NOK 92 million before tax. This represents an increase of 38 percent compared to the previous year. Revenue for 2019 was close to NOK 1.9 billion. The results can be attributed to Omega’s long-term commitment to software development and consultancy services, which assist clients in project completion.

“In 2019, we strengthened our foothold in major, state-funded building and infrastructure projects, while demand within our traditional segments, such as oil and gas and renewables, increased considerably globally,” says CEO in the Omega Group, Petter Aalvik.

“The fact that we achieved good growth in all areas in Norway and abroad, is also the reason that we achieved high growth in the Omega Group in 2019.”

Additional market segments

The oil industry still features prominently in Omega’s portfolio of clients, but since 2014 the group has continued to focus on new markets, such as construction, health, and renewable energy. It is particularly Omega’s consultancy services and software businesses, and often a combination of the two, that pave the way into new market segments.

“During the oil crisis a few years ago, we had to adjust and focus on other industries. We invested heavily in the construction industry via the information system, HMSREG, and the project-support tool, Pims 365, which is adapted from the Pims system we provide to our oil and gas clients. In 2019 we had many contracts with state-owned, contractor and development companies such as Statsbygg, Sykehusbygg, and Bane NOR,” says Aalvik, pointing out that Omega also started providing IT consultants at this time. Now, 40 percent of the group’s operations are therefore less affected by fluctuations in the oil market.

Omega's systems and personnel can be found on several national construction projects such as the New National Museum in Oslo, Stavanger University Hospital (SUS2023), and the railway project, Follobanen. In addition, Omega has experienced success with a tailor-made solution, consisting of systems and expertise, for offshore completion management. Omega has participated in the offshore completion of the Edvard Grieg platforms, Culzean in the United Kingdom, and Johan Sverdrup in Norway. These projects are regarded as some of the largest in the North Sea, from both a Norwegian and British perspective.

In addition to the provision of personnel and systems, subsidiary companies Omega Areal and Omega Design provide services within architectural and engineering, and design and communication respectively.

International growth

In 2019 Omega established a new office in France to supply the project-management tool, Pims, to a large client in the oil and gas sector. Pims was rolled out in about 50 countries on behalf of the client in question. Omega has recently secured a similar contract in the United States.

“Internationally, we are increasing our focus on renewable energy, pharmaceuticals, and construction projects,” says Aalvik.

Omega’s companies in Australia, Canada, and the USA have secured growth via several major agreements that have, in turn, led to the hiring of new team members. Omega’s team in Lithuania has doubled, from 20 to 40 people. In total, there are now 1 385 employees in the Omega Group.

Better equipped

At the start of 2020 the outlook was good, but Omega has, like the majority of organizations, felt the effects of the COVID-19 situation and low oil prices.

“Some of our consultants have been laid off or contracts have been terminated as a result of projects having to shut down, but we also have many clients that have shown great adaptability and continue to run their projects, whilst adhering to the current restrictions.”

“We are better equipped to deal with a crisis now. We have streamlined operations, good management systems, and the percentage of our business that is vulnerable to fluctuations in the oil market is less than in previous downturns. In addition, a strong 2019 has provided us with a good market position, which has allowed us to enter this crisis with broad involvement in many projects.”

“The uncertainty that the corona situation has brought us in the market is greater than that of the last oil crisis, but we also see that the various authorities are putting in place many helpful measures. We have made plans for various scenarios and are continuously monitoring developments. We have investment areas in Omega where we see opportunities in the months ahead, despite the crisis. However, at the group level, we cannot expect growth in 2020,” concludes Aalvik.