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Several fish farms in Troms have incomes as large as the supply industry to the oil industry in Troms. – Oil deliveries are declining.
RICH IN SHRIMP: Director Arnfinn Semmingsen and the Semmingsen family own the Stella Polaris Shrimp Factory. F
Stian Jakobsen, Folkebladet
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In the small town of Kårvikhamn between Finnsnes and Tromsø is the Stella Polaris shrimp factory overlooking Gisundet. 70 employees work in the fundamental company of the town, where 200 people live, large and small.
The company for the first time exceeded 500 million kronor in revenue last year. This is about the same as the entire oilfield services industry in Troms had in turnover last year.
– I have not thought about the fact that we have the same income, says director Arnfinn Semmingsen at Stella Polaris.
AUTOMATED – Shrimp processing is largely automated and takes place in the room behind CEO Arnfinn Semmingsen at Stella Polaris
Stian Jakobsen, Folkebladet
(+) The Minister of Seafood Products does not care about more agriculture despite the great potential for conflict
NHO and Econ predicted 15 years ago that the oil industry would become an economic driving force in the north and provide the region with 10,000 new jobs, while the traditional fishing industry had to restructure.
The status is that a shrimp factory with 70 employees in Kårvikhamn has income as high as the 40 companies in Troms that provide services and goods to the oil sector.
– Passing 500 million in turnover was a milestone. This is the highest turnover we have ever had. We went from being a medium-sized company to a large company, says Semmingsen.
Cod tongues on the pier
He runs the family business that started 50 years ago as a small fish farm in Mid-Troms, with a record turnover of NOK 507 million last year. The Karlsøy Mill in Vannøya outside Tromsø also set a new record with NOK 560 million in revenue last year.
By comparison, 39 companies in Troms delivered NOK 524 million of goods and services to the oil and gas industry last year, according to the Delivered from the Knowledge Park report in Bodø.
– We still have few employees and a relatively large turnover per employee. We increased to two shifts last year and make better use of the factory. Much of the production is automated, so we don’t need to increase the number of employees as much, says Semmingsen of the shrimp factory, which is on par with the oil supply industry in Troms.
He started out as a cod tongue cutter on the Kårvikhamn pier as a child and owned his first stake in his father’s fish farm when he was 15 years old. He was driving a truck and peeling shrimp when he was 16 years old and graduated from the factory, where he became a production manager and technical manager until he took over as general manager last year. Several of his brothers also work in the factory.
– The goal is to achieve good operations and have a viable company over time, says Semmingsen.
(+) Inge Bergs Nordlaks exceeded NOK 3 billion in revenue
SAFETY: Rescue course with camera in the pool of the Arcos Safety Center in Tromsø.
Ronald Johansen
The 39 Troms companies that deliver to the oil sector receive just 16 percent of the oil industry’s revenue. The rest of the income comes from other industries. North of Tromsøya is one of many companies that derive some of their income from the oil sector, and even more from fishing and aquaculture.
– Now you have to swim. Lie on your back, shouts instructor Gunnar Winther into the blue pool at the Arco security center.
A dozen men splash around in orange survival suits and practice mastering the waves and the wind. A man tries to get on a life raft, but falls back into the water.
– The exercises should be as realistic as possible. They practice camera rescue and wave, rainfall and wind handling under controlled conditions, says general manager Bjørn Gundersen at Arcos, who follows the safety course from the edge of the pool.
COURSE: Managing Director Bjørn Gundersen at Arcos follows the safety course from the edge of the pool.
Ronald Johansen
(+) Here Liza (28) will produce 10 million salmon
No growth in oil
Good times in fisheries and aquaculture mean that your company is increasing revenue from the two fishing industries, while deliveries to the oil industry are declining this year.
– The aquaculture, fishing and shipping industry are very important to us. If I have to predict, the biggest growth for us will be in the aquaculture, fisheries and land industries, says Gundersen, who runs seven employees and has a turnover of around NOK 25 million.
– In the last few years, we have had about 10 percent of the revenues from the oil and gas industry. Usually, it is the offshore workers who live in the north who take courses with us. This year, oil and gas deliveries are declining as we lost a significant allocation from Equinor due to the corona pandemic. We believe Hammerfest LNG will return next fall. At the same time, I do not foresee any significant growth in oil and gas deliveries in the next few years, he adds.
According to the Delivered report, deliveries from northern Norway to the oil sector are actually lower last year than 10 years ago. In 2010, Northern Norwegian companies had deliveries of NOK 3.5 billion, while last year they had deliveries of NOK 3.9 billion. Adjusted for inflation, NOK 3.5 billion in 2010 corresponds to just over NOK 4.2 billion in 2019.
Half gone in Tromsø
This year, companies expect a sharp reduction in revenues from the oil sector, which has been hit hard by the coronavirus. Troms companies estimate that revenue will drop by about NOK 200 million this year, to NOK 340 million. This is a decrease of up to 35 percent.
SECURITY CENTER: Bjørn Gundersen in Arcos Photo:
Ronald johansen
Of the 178 companies in northern Norway that made deliveries to the oil industry, 124 of them had deliveries worth less than NOK 10 million. About 50 companies in northern Norway made deliveries worth more than NOK 10 million. Only 50 companies in the whole of northern Norway derive most of their turnover from the oil sector. There are 27,000 limited companies registered in Northern Norway.
