Record year for Norwegian Supplier Industry

On the opening day of the energy conference ONS, export statistics for the supplier industry were presented for the first time. The supplier statistics are based on fresh data from Statistics Norway (SSB) and the analysis firm Menon Economics and reveal that Norwegian supplier companies have never exported as much as they have in 2023 and 2024.

“Exports of goods and services to the energy sector are strong in 2024. If the trend continues in the second half of the year, which there is reason to believe, exports will amount to just under NOK 160 billion. If so, we will have seen a growth of over 60 percent since 2021,” says Ann Christin Andersen, CEO of Norwegian Energy Partners (NORWEP).

This means that the export value of the supplier industry is soon on par with the export value of Norwegian seafood, which last year was around NOK 172 billion.

“We believe the supplier industry will surpass seafood and become Norway's second-largest export industry,” Andersen says.

Although the Norwegian supplier industry is primarily focused on the petroleum sector, it is increasingly delivering to renewable energy. Currently, this turnover is around NOK 20 billion, and this is where the greatest growth is expected in the coming years.

“Growth is bolstered by inflation and the increasingly favorable exchange rate of the Norwegian krone against the euro, but also by strong demand for Norwegian solutions and expertise,” says Sveinung Fjose, a partner at Menon, which is behind the analysis.

Andersen is pleased with the numbers but notes that the backdrop for the growth is grim.

“Russia's brutal war of aggression on Ukraine has increased the need for stable energy supply in all countries. This has led to a significant increase in oil and gas exploration, as well as measures for increased production from existing oil and gas fields. In addition, it has accelerated the green energy transition.”

Aibel wins supplier award

During the opening day of ONS, Aibel was presented as the winner of NORWEP's Supplier Award. The award was handed out by Astrid Bergmål, State Secretary for the Ministry of Energy.

The Supplier Award is an annual recognition of supplier companies that have excelled in promoting Norwegian technology and solutions to the energy sector and in capturing international market share.

“Aibel is a company that has traditionally delivered to the petroleum industry but was early in securing a position in the renewable energy industry. The company has used its leading position in offshore platform construction to, among other things, deliver offshore transformer stations to the world's largest offshore wind farm, Dogger Bank,” says Ann Christin Andersen.

In addition to so-called "topside" solutions, which Aibel delivers to both petroleum and renewable energy sectors, service-providing companies also contribute significantly to the growth in exports.

“Norwegian supplier companies don't just deliver impressive steel structures. We have also succeeded in building a large knowledge-based industry around the energy sector. This now constitutes the largest export segment. Engineering, legal, and certification services are examples of areas that are experiencing increasing demand from abroad,” says Andersen.

People in the attached photo from the award ceremony:

From left: Ann Christin Andersen (CEO, NORWEP), Mads Andersen (CEO, Aibel), and Astrid Bergmål (State Secretary, Ministry of Energy).