Fourth billion NOK company

With record growth in 2011, Omega AS in Ølensvåg is the fourth company in Vindafjord municipality crossing the NOK 1 billion mark.

Published: 05.03.12

Published in local newspaper Grannar in Vindafjord and Etne municipality, 09.03.12
by Jon Edvardsen

Facsimile from Grannar, 05.03.12

Omega is the fourth company in Vindafjord municipality reaching NOK 1 billion in turnover with 189 NOK million growth in income, joining other Vindafjord companies in the NOK billion division; the Westcon Group, the Fatland Group and the Hatteland group.

Omega’s turnover has increased from NOK 843 million in 2010 to NOK 1032 million in 2011. The company reaches the billion mark 25 years after predecessor Futura Datasenter AS was established in 1987. Reaching the NOK billion milestone is one of the reasons Omega became one of three nominees for the Company of the Year Award in the Haugaland region. However, the title was awarded Karmøy IT company Sysco at the Haugaland Business Region Conference Friday evening.

Growth is strength

The NOK billion turnover is a milestone in the company’s rapid growth. Annual average growth has been 30 percent since 2003, with a record high increase in 2011. It has been an adventure, says Omega entrepreneur and chairman Sigmund Lunde when describing the development.

“We have demanding clients working on extensive projects, and ever since we had our first agreement with Statoil in 1994, we’ve been told we are too small. Clients have been requesting our services in new projects and have been challenging us on expertise. It has always been a question of whether we are big enough to deliver. By growing we welcome more employees and a wider range of competence. This makes growth so important to us,” Lunde say.

“ A company on the way up will also offer more career opportunities for our employees, making it easier to attract more expertise,” Lunde adds.

Good at margins

The solid growth in turnover last year does not however contribute to similar increase in profit on the bottom line. Net profit reached close to 39 NOK million in 2011 compared to 35 million last year. But this is an advantage in competition with other providers, Lunde explains; Working with lower operating profit margins is part of the Omega strategy.

“Even if the profit margins are low, business can still be good. Human capital is what’s important to us, and we have no need of investing in expensive machinery. With lower profit margins, it is harder for others to take shares in this business, and isn't lucrative either. Also, Omega spends money on technology and product development that will provide better returns in the long run.”

Reaching 1 000

Omega provides expertise to development projects in the oil and gas industry, with its own developed management system as the cornerstone. 2011 was a good year for the oil sector and it is full speed ahead also in 2012. Omega is expecting the same.

“Record high investments are made on the Norwegian Shelf, and our goal is to reach new market shares. We have passed the NOK billion mark and are ready to cross the 1 000 employee mark as well in 2012,” Lunde says.

Today Omega has got 900 employees. Lunde praises neighbour Westcon Yard’s achievements getting extensive assignments such as oil rig Scarabeo 8 to the neighborhood. This resulted in the ship yard becoming Omega’s second largest client in 2011, Statoil being the largest.

Crowded in Ølensvåg

Omega has got seven offices abroad, showing varied financial results in 2011. Omega Singapore and Omniware in Australia experienced solid growth, while it has been very hard getting ahead in Houston, Lunde says. There are no plans establishing other international offices during 2012, but Omega is strengthening focus on business in Canada.

“ Internationally Omega hasn’t gotten as far yet, but we’ve established a good starting point,” Lunde says. Capacity at the offices in Ølensvåg has reached its limit and the company is planning to expand headquarters. The project is however on hold because of undecided status for the E134 and road solutions in Ølensvåg.