The 3,2 % increase in net income might not be impressive, but a higher share of services adds an increase to the margins - and estimates the yearly result to be better than in 2016. Reduced costs due to a more balanced and streamlined organization contributes to the bottom line.
Most of the industry knows that TESS has done well in the challenging years we have put behind us. We maintain the leading position in the market in terms of both hoses and welding-related products and services.
The experience gained from three years of managing Norway’s largest business cluster, Subsea Valley, gave us the knowledge needed to see the consequences of the falling oil prices early on, and helped us adjust accordingly.
New products from research and development
The organization and staffing were adapted, and both Aquaculture, Construction Contractors and Public Investments got a stronger focus. At the same time the crew and service equipment for oil and gas related activities were kept intact; this was appreciated by the biggest customers – with Statoil in the lead – and gave us additional opportunities.
Assets and resources for research and development were maintained. This resulted in new products for the Aquaculture area, with safer and more durable feeding hoses, as well as integrated supply solutions based on RFID technology – which all industries can apply to increase their profits and uptime.
The art of staying afloat
TESS turns 50 in 2018, and we have overcome many crises of both national and international importance with increasing success. “Stay liquid” has been one of the instruments. As a private company now owned by Erik Jølberg and employees, good results and profits remain in the company without demands from the shareholders on increasing dividends – this allows more assets to be used for investment and development.