First contract signed for autumn

2020 has become a dirty word in the industry. Rapid and difficult decisions have helped TESS Subsea during a demanding period. The first agreement has now been signed for autumn.

From the top of the oil platforms to the the bottom of the sea. No matter where your business is located, everyone has been affected by the corona pandemic - and TESS Subsea is no exception. What sets the hose manufacturer's deep water department apart from many other companies is its ability to change and adapt. Rapid action taken at an early stage of the outbreak and several projects were postponed rather than cancelled.

New production
The first agreement for steel flying leads was signed earlier this summer. The agreement covers the supply of "steel flying leads", which are a completely new production for TESS Subsea and an expansion of the company's service and product portfolio. The project was carried out in collaboration with Nexans in Rognan and a further development of the partnership TESS Subsea already has with Nexans. The project will be delivered by the end of December.

Triple revenue in 2019
After four years of lean results and significant deficits in 2016 and 2017, TESS Subsea increased its turnover to 32.1 million in 2018. In the record-breaking year of 2019, the deep water department had a turnover of NOK 92.5 million, almost three times that of previous year.

A large part of the turnover is in exports to the oil fields of Merakes (Indonesia), Lin Hua (China), Zinia (Angola) and Pyxis (Australia).

Focussing on a good result
Stefan Johnsen, CEO of TESS Subsea, started 2020 with great optimism. But his optimism suffered a blow when the corona pandemic suddenly interrupted plans for February/March and the situation had to be reassessed.

"We were heading for a similar year as 2019, but COVID-19 has obviously changed it. Several of the larger projects have been postponed and there is reduced activity, "Johnsen explains.

Approximately 260,000 people have lost their jobs or been laid off within the industry.

"We are focussing on achieving a good result, and we are doing everything we can to take care of our employees and our customers," Johnsen concludes.

TESS Subsea is an engineering and production company that markets and supplies subsea and two-side distribution equipment such as flying leads and thermoplastic umbilicals. The company is wholly owned by TESS Logistics AS and is based in Lier, Norway.

For more information, please contact:

Stefan Johnsen
Tel: 478 40 790
[email protected]