Mega Growth for Omega

Published: August 2006

Software company Omega posted 50 percent top line growth last year. In the last issue of Kapital, Omega was presented as Norway's eighth largest software company. A turnover of 245 million, up from 163 million in 2004, pushed the company up just behind the far more widely discussed SuperOffice in the rankings

Omega delivers project control and database solutions to the oil and gas sector. Eighty percent of their turnover comes from the Norwegian market.

The growth continues

The solutions the company delivers cover the needs the client has in relation to the development and optimalisation of their own value creation. The company, that was started 20 years ago, boomed with a growth in turnover of 50 percent last year. According to Chief Executive Officer Petter Aalvik, who owns 6.7 percent of the shares through Ryvarden AS, it will not be worse in 2006.

"The growth rate up until now in 2006 has been on the same level as 2005. With our clients' planned and current projects as a basis, we see good potential to develop the company further at the same rate," says Aalvik.

Demand for the company's products and services are driven by the investment level in the oil industry.

With a strong base of project control personnel from the higher echelons, in regard to competence and quality, and tested and proven system solutions, Omega is in a good position for growth, tells Aalvik.

Will grow internationally

In the annual report, the board is stating that there is a risk that qualified personnel will be harder to find in 2006. Aalvik states that this has not stopped the company from reaching its growth targets.

"Clarified and identified risk will be met with initiatives to negate it. The issue of having sufficiently qualified personnel has been, and is, a focus point. It is about developing internal resources, recruiting directly from educational institutions, sourcing capacity internationally and having good relationships with co-workers", he says.

Which challenges will the company face in the near future?

"To establish a greater presence in more locations internationally," Aalvik says.

The company's biggest clients are larger Norwegian and international oil companies, but Omega also makes considerable deliveries to the oil company's contractors. In June, the company signed a new, extensive frame agreement with Statoil in the areas of project management, procurement, and project control services.

How does the oil price affect the market you are working in?

"Future oil prices guide the investment level in the oil sector. Investment levels affect the company's performance," Aalvik says.

No stock exchange plans

After paying out 8.8 million NOK in dividends in 2004, owners received nothing last year. The owners are satisfied with the development and despite the fact that Omega is larger than most of the IT companies on the Oslo Stock Exchange, they have not seen the need to use the capital market for further growth.

"There is stable ownership at Omega and presently there are no plans to float the company."

At the turn of the year, Omega had 13 million NOK in cash and 68 million NOK in accounts receivable. 58.4 million NOK is recorded as customer receivables, the board is writing in the annual report that these are connected to solid companies that have proven themselves as reliable in terms of payment.