Unemployment rate creeps upwards
It's long been expected that Norway's relatively low unemployment rate would rise, and new figures confirm the trend. Officials at state statistics bureau SSB note, however, that the increase is much less than it was last year at this time. Figures from state employment and welfare agency NAV showed that the total number of persons registering as being without work in Norway in February rose by 800, compared to a monthly increase in February last year of nearly 4,000. All told, the total number of persons in Norway without work and seeking it was 83,400 at the end of February, up 16,000 from a year ago and amounting to an unemployment rate of 3.2 percent of the Norwegian workforce. Total employment has risen, however, while SSB's method of calculation (slightly different from NAV's) showed an unemployment rate of 3.3 percent.
(Written February 26, 2010)
It's long been expected that Norway's relatively low unemployment rate would rise, and new figures confirm the trend. Officials at state statistics bureau SSB note, however, that the increase is much less than it was last year at this time. Figures from state employment and welfare agency NAV showed that the total number of persons registering as being without work in Norway in February rose by 800, compared to a monthly increase in February last year of nearly 4,000. All told, the total number of persons in Norway without work and seeking it was 83,400 at the end of February, up 16,000 from a year ago and amounting to an unemployment rate of 3.2 percent of the Norwegian workforce. Total employment has risen, however, while SSB's method of calculation (slightly different from NAV's) showed an unemployment rate of 3.3 percent.
(Written February 26, 2010)
Statoil's decision to develop the new oil and gas field called Gudrun in the North Sea is welcome news to Norway's hard-pressed offshore industry. Statoil convinced its partners GDF Suez and Marathon to move forward with the project, expected to cost around NOK 21 billion and subject to approval by the Parliament. It holds the promise of lots of new work for offshore companies, and Aker Solutions already has snared one contract to build the steel foundation for Gudrun at its Aker Verdal yard. The Gudrun field, 55 kilometers north of Sleipner (photo) is expected to yield 132 million barrels of oil plus gas.
(Written February 19, 2010)
Norway may be willing to sell SAS shares
The governments of Norway, Sweden and Denmark hold controlling shares in long-troubled Scandinavian Airlines (SAS), and now they may be willing to reduce their stakes. All are backing a new issue aimed at boosting SAS's capital, to reduce job losses and keep SAS flying, but Swedish government officials confirmed Thursday that they want to reduce their holdings. That prompted the Norwegian cabinet minister in charge of business and industry, Trond Giske, to say that Norway was "open" for a share sale as well. No sale is imminent, though. Giske said the shares would be sold if the company returns to profitability and becomes competitive again. "We're open to a sale if we can get a good price," he told Norwegian Broadcasting (NRK), but only if jobs and the airline's underlying values would be preserved. State ownership, Giske said, was more important in earlier decades than it is now. If both the Danish and Swedish governments support a sale, then it would be highly likely Norway would too, he said. SAS has been cutting costs for years but its workers remain among the most expensive in the industry. Burdened by years of state regulation and myriad labour union contracts in three countries, SAS hasn't been able to compete against upstart airlines offering low fares and much lower wages for their workers.
(Written February 19, 2010)
The governments of Norway, Sweden and Denmark hold controlling shares in long-troubled Scandinavian Airlines (SAS), and now they may be willing to reduce their stakes. All are backing a new issue aimed at boosting SAS's capital, to reduce job losses and keep SAS flying, but Swedish government officials confirmed Thursday that they want to reduce their holdings. That prompted the Norwegian cabinet minister in charge of business and industry, Trond Giske, to say that Norway was "open" for a share sale as well. No sale is imminent, though. Giske said the shares would be sold if the company returns to profitability and becomes competitive again. "We're open to a sale if we can get a good price," he told Norwegian Broadcasting (NRK), but only if jobs and the airline's underlying values would be preserved. State ownership, Giske said, was more important in earlier decades than it is now. If both the Danish and Swedish governments support a sale, then it would be highly likely Norway would too, he said. SAS has been cutting costs for years but its workers remain among the most expensive in the industry. Burdened by years of state regulation and myriad labour union contracts in three countries, SAS hasn't been able to compete against upstart airlines offering low fares and much lower wages for their workers.
(Written February 19, 2010)
Norwegian coastal shipping line Hurtigruten confirmed its resurgence this week by posting operating profits of nearly NOK 96 million for 2009, compared to a loss of NOK 257 million in 2008. The long-troubled line also seems on course for a pre-tax profit in 2010, a welcome turnaround from years of losses. Passengers are streaming on board, even now in the middle of winter, thanks at least in part to better times and a successful "See the light" ad campaign, promoting the Northern Lights and unique light of winter days in the otherwise dark far north. The captain of the Trollfjord (photo) could recently report more than 400 passengers on board for round-trip cruises from Bergen to Kirkenes. Hurtigruten has also gained on a long-term vessel charter to an offshore field off Australia.
(Written February 19, 2010)
GNP drops for first time in 20 years
Norway's state statistics bureau SSB reported Thursday that the country's gross national product (GNP) fell 1.5 percent from 2008 to 2009, when measured in inflation-adjusted prices. It's the first reduction in GNP since 1989 and indicates that Norway didn't entirely resist the effects of the global finance crisis. The downturn in Norway's mainland economy (excluding offshore oil and gas revenues) began in the third quarter of 2008 and continued into the first quarter of 2009, reported news bureau NTB. The downturn didn't let up until the third quarter of last year, and there was recovery in the fourth quarter. GNP rose 0.3 percent from the third to the fourth quarter. The GNP's fall is blamed on a drop in consumer demand, with export firms hit especially hard. Increased public spending offset a domestic downturn in the Norwegian economy.
(Written February 18, 2010)
Norway's state statistics bureau SSB reported Thursday that the country's gross national product (GNP) fell 1.5 percent from 2008 to 2009, when measured in inflation-adjusted prices. It's the first reduction in GNP since 1989 and indicates that Norway didn't entirely resist the effects of the global finance crisis. The downturn in Norway's mainland economy (excluding offshore oil and gas revenues) began in the third quarter of 2008 and continued into the first quarter of 2009, reported news bureau NTB. The downturn didn't let up until the third quarter of last year, and there was recovery in the fourth quarter. GNP rose 0.3 percent from the third to the fourth quarter. The GNP's fall is blamed on a drop in consumer demand, with export firms hit especially hard. Increased public spending offset a domestic downturn in the Norwegian economy.
(Written February 18, 2010)
More bad numbers from Norsk Hydro
Norwegian industrial concern Norsk Hydro, now mostly a metals producer, is finally enjoying a rise in aluminum prices, but they're coming too late to boost last year's results. Hydro saw operating revenues slide NOK 21 billion in 2009, from NOK 88.4 billion in 2008 to NOK 67.4 billion last year, while operating profits fell to a loss of NOK 1.4 billion, down from a profit of NOK 1.2 billion in 2008. Most of its aluminum plants lost money last year when prices fell 35 percent as a direct result of the global economic downturn. Hydro thus warned that it may need to close more facilities, and workers may lose their jobs. Its Sunndal and Søral plants in Norway are only operating at 25 and 50 percent of capacity, reports newspaper Aftenposten. Hydro, which sold off its oil and gas operations to Statoil and spun off its fertilizer business into what's now Yara International ASA (see below), already has been through several rounds of staff cuts throughout the company.
(Written February 18, 2010)
Norwegian industrial concern Norsk Hydro, now mostly a metals producer, is finally enjoying a rise in aluminum prices, but they're coming too late to boost last year's results. Hydro saw operating revenues slide NOK 21 billion in 2009, from NOK 88.4 billion in 2008 to NOK 67.4 billion last year, while operating profits fell to a loss of NOK 1.4 billion, down from a profit of NOK 1.2 billion in 2008. Most of its aluminum plants lost money last year when prices fell 35 percent as a direct result of the global economic downturn. Hydro thus warned that it may need to close more facilities, and workers may lose their jobs. Its Sunndal and Søral plants in Norway are only operating at 25 and 50 percent of capacity, reports newspaper Aftenposten. Hydro, which sold off its oil and gas operations to Statoil and spun off its fertilizer business into what's now Yara International ASA (see below), already has been through several rounds of staff cuts throughout the company.
(Written February 18, 2010)
Country's biggest bank hit with huge fine
State financial regulators slapped Norway's biggest bank, DnB NOR, with a huge fine on Tuesday and ordered it to refund earnings that they claim were based on insider trading. The bank has agreed to pay the total demand for NOK 26 million (about USD 4.3 million) but insists it hasn't broken the law. The case stems from a sudden and high degree of activity in the fall of 2008, when the global finance crisis first hit and DnB NOR sold state securities to other banks in October. The sales came just before the state stepped forward with its crisis package to boost bank liquidity, and state investigators claim DnB sold the securities at a profit, knowing the state would later come with its crisis funding. Prosecutor Thomas Skjelbred told Norwegian Broadcasting (NRK) that its large fine of NOK 12 million "reflects the seriousness" of the violation. DnB was also ordered to pay back NOK 14 million the state claims it earned on the disputed securities sales. DnB denies acting on insider information, with a spokesman saying "we have not broken any law" and "we disagree" with the prosecutor's findings. But DnB NOR feels it's more important to dispense with the case and move on. In return, charges against two DnB employees will be dropped.
(Written February 17, 2010)
State financial regulators slapped Norway's biggest bank, DnB NOR, with a huge fine on Tuesday and ordered it to refund earnings that they claim were based on insider trading. The bank has agreed to pay the total demand for NOK 26 million (about USD 4.3 million) but insists it hasn't broken the law. The case stems from a sudden and high degree of activity in the fall of 2008, when the global finance crisis first hit and DnB NOR sold state securities to other banks in October. The sales came just before the state stepped forward with its crisis package to boost bank liquidity, and state investigators claim DnB sold the securities at a profit, knowing the state would later come with its crisis funding. Prosecutor Thomas Skjelbred told Norwegian Broadcasting (NRK) that its large fine of NOK 12 million "reflects the seriousness" of the violation. DnB was also ordered to pay back NOK 14 million the state claims it earned on the disputed securities sales. DnB denies acting on insider information, with a spokesman saying "we have not broken any law" and "we disagree" with the prosecutor's findings. But DnB NOR feels it's more important to dispense with the case and move on. In return, charges against two DnB employees will be dropped.
(Written February 17, 2010)
Opposition politicians question state support for big Yara acquisition
Norwegian fertilizer company Yara ASA launched one of the country's biggest takeovers in history on Monday, agreeing to buy up US competitor Terra Industries for more than USD 4 billion (NOK 24 billion). The deal boosts Yara's position as the world's dominant player in the industry, greatly enlarging its production capacity in the US alone, but it also hinges on a new stock issue that's sparking complaints from members of the opposition in Parliament. The Norwegian state is Yara's largest individual shareholder and thus is being asked to come up with around 36 percent of the stock issue, which could leave the state putting up as much as NOK 5.4 billion. Members of the Conservative Party are skeptical, saying the government should use the stock issue as an opportunity to reduce its holdings in Yara. The government minister in charge of business and industry, Trond Giske of the Labour Party, backs the deal, though. He called Yara "an important Norwegian company" that's a "world leader" in its branch. Yara, claimed Giske, has yielded good dividends to the state since it was spun off from Norsk Hydro in 2004, "and we support investments that secure continued industrial development." Stock in Yara, which has bought up several other firms in recent years, fell 6 percent by mid-day on Monday, after the Terra acquisition was announced. Yara CEO Ole Jørgen Haslestad said he could understand that not all investors were enthusiastic about pumping more money into the company, "but we must think long-term" and focus on Yara's solid track record since it was listed itself.
(Written February 15, 2010)
Norwegian fertilizer company Yara ASA launched one of the country's biggest takeovers in history on Monday, agreeing to buy up US competitor Terra Industries for more than USD 4 billion (NOK 24 billion). The deal boosts Yara's position as the world's dominant player in the industry, greatly enlarging its production capacity in the US alone, but it also hinges on a new stock issue that's sparking complaints from members of the opposition in Parliament. The Norwegian state is Yara's largest individual shareholder and thus is being asked to come up with around 36 percent of the stock issue, which could leave the state putting up as much as NOK 5.4 billion. Members of the Conservative Party are skeptical, saying the government should use the stock issue as an opportunity to reduce its holdings in Yara. The government minister in charge of business and industry, Trond Giske of the Labour Party, backs the deal, though. He called Yara "an important Norwegian company" that's a "world leader" in its branch. Yara, claimed Giske, has yielded good dividends to the state since it was spun off from Norsk Hydro in 2004, "and we support investments that secure continued industrial development." Stock in Yara, which has bought up several other firms in recent years, fell 6 percent by mid-day on Monday, after the Terra acquisition was announced. Yara CEO Ole Jørgen Haslestad said he could understand that not all investors were enthusiastic about pumping more money into the company, "but we must think long-term" and focus on Yara's solid track record since it was listed itself.
(Written February 15, 2010)
Outgoing central bank boss urged higher property tax
Svein Gjedrem gave his last annual address as head of Norway's central bank last week, and urged higher property taxes in return for lower income and corporate tax. Gjedrem said that Finance Minister Sigbjørn Johnsen could cut taxes on income and companies by as much as NOK 35 billion if he brought property taxes more in line with other western countries. (While Norway is known as a high-tax country, its property taxes are actually much lower than even many states' in the US.) Gjedrem argued that a restructuring of the tax system could boost economic growth in Norway and reduce huge swings in the real estate market. Johnsen, and Prime Minister Jens Stoltenberg of the Labour Party, however, later said they had no plans to raise property tax levels in Norway. Gjedrem, who also thinks Johnsen should quickly tighten the state budget and stop using so much oil revenue, will be stepping down as central banker at the end of the year, when he will have served a maximum of two six-year terms.
(Written February 12, 2010)
Svein Gjedrem gave his last annual address as head of Norway's central bank last week, and urged higher property taxes in return for lower income and corporate tax. Gjedrem said that Finance Minister Sigbjørn Johnsen could cut taxes on income and companies by as much as NOK 35 billion if he brought property taxes more in line with other western countries. (While Norway is known as a high-tax country, its property taxes are actually much lower than even many states' in the US.) Gjedrem argued that a restructuring of the tax system could boost economic growth in Norway and reduce huge swings in the real estate market. Johnsen, and Prime Minister Jens Stoltenberg of the Labour Party, however, later said they had no plans to raise property tax levels in Norway. Gjedrem, who also thinks Johnsen should quickly tighten the state budget and stop using so much oil revenue, will be stepping down as central banker at the end of the year, when he will have served a maximum of two six-year terms.
(Written February 12, 2010)
Norway's highest court handed shipowners a major victory over the state on Friday, ruling they were not liable to collectively pay NOK 21 billion in back taxes. The decision was a crushing blow for the government and former Finance Minister Kristin Halvorsen, who had insisted that the shipowners should pay taxes built up from 1996 until 2007, when tax rules were changed and shipowners could operate from Norway with virtually no tax liability. In return, the government tried to lay claim to taxes on operations in prior years. The shipowners, led by Bergen-based owner Elisabeth Grieg (photo) and the Norwegian Shipowners Association, claimed that violated the Norwegian constitution, which prohibits retroactive liability. Various firms had sued over the years, with mixed results. Some won in Oslo courts, others lost in courts elsewhere in the country. The Supreme Court in Oslo heard the appeal of one of those losses and sided, by narrow margin, with the shipowners. One of their attorneys called the ruling "important for all taxpayers," because it means Norwegians shall pay tax in accordance with existing laws, not those that come later. Current Finance Minister Sigbjørn Johnsen said the government would study the high court's ruling and otherwise had little comment.
(Written February 12, 2010)
Young Norwegians slow to pay their bills
A collection agency in Oslo told newspaper Aftenposten this week that claims against Norwegians aged 18 to 25 have risen by more than 50 percent in the past two years. Cases rose from 115,621 to 174,142 at collection firm Lindorff, and managing director Heidi Skaaret had two explanations: "For some companies, young customers make up an attractive group for the long term, and it's easy for them to get credit. In addition, we see that young people are accustomed to high levels of consumption, and aren't as good at saving as earlier generations were." Collection claims among the general public were up nearly 43 percent from 2007 to 2009. Another firm, Kredinor, reported a 64.4 percent jump in cases involving young persons, compared to 17.2 percent for the general population.
(Written February 12, 2010)
A collection agency in Oslo told newspaper Aftenposten this week that claims against Norwegians aged 18 to 25 have risen by more than 50 percent in the past two years. Cases rose from 115,621 to 174,142 at collection firm Lindorff, and managing director Heidi Skaaret had two explanations: "For some companies, young customers make up an attractive group for the long term, and it's easy for them to get credit. In addition, we see that young people are accustomed to high levels of consumption, and aren't as good at saving as earlier generations were." Collection claims among the general public were up nearly 43 percent from 2007 to 2009. Another firm, Kredinor, reported a 64.4 percent jump in cases involving young persons, compared to 17.2 percent for the general population.
(Written February 12, 2010)
Bank rewards all employees with bonus
Even during a year with a global finance crisis, Norway's largest bank performed so well that all employees are getting at least NOK 10,000 (about USD 1,700) in a bonus, reports Norwegian Broadcasting (NRK). DnB NOR, which is partially state-owned, earned pre-tax operating profits of NOK 18.7 billion in 2009 before write-downs, which turned out to be less than expected. The operating net was up from NOK 15.6 billion in 2008 and chief executive Rune Bjerke wanted to share the wealth. The state will also get its share of a proposed dividend per share of NOK 1.75, up from zero last year. Fourth-quarter pre-tax profits amounted to NOK 2.6 billion, exceeding analysts' expectations of NOK 1.9 billion, reports TDN Finans. The bank's results were fueled largely by profits rolling in from its securities division, DnB NOR Markets. DnB NOR Markets boss Ottar Ertzeid, who has presided over an operation where earnings have doubled since he took charge eight years ago, attributed the strong results to "special markets and swings that have been extraordinary." Full-year bottom-line results for DnB NOR were down, to NOK 7 billion from NOK 8.9 billion in 2008, though, partly because of write-downs on its Baltic operations. And Bjerke warned that "the danger isn't over," indicating that shipping loans can lead to losses in the months ahead.
(Written February 11, 2010)
Even during a year with a global finance crisis, Norway's largest bank performed so well that all employees are getting at least NOK 10,000 (about USD 1,700) in a bonus, reports Norwegian Broadcasting (NRK). DnB NOR, which is partially state-owned, earned pre-tax operating profits of NOK 18.7 billion in 2009 before write-downs, which turned out to be less than expected. The operating net was up from NOK 15.6 billion in 2008 and chief executive Rune Bjerke wanted to share the wealth. The state will also get its share of a proposed dividend per share of NOK 1.75, up from zero last year. Fourth-quarter pre-tax profits amounted to NOK 2.6 billion, exceeding analysts' expectations of NOK 1.9 billion, reports TDN Finans. The bank's results were fueled largely by profits rolling in from its securities division, DnB NOR Markets. DnB NOR Markets boss Ottar Ertzeid, who has presided over an operation where earnings have doubled since he took charge eight years ago, attributed the strong results to "special markets and swings that have been extraordinary." Full-year bottom-line results for DnB NOR were down, to NOK 7 billion from NOK 8.9 billion in 2008, though, partly because of write-downs on its Baltic operations. And Bjerke warned that "the danger isn't over," indicating that shipping loans can lead to losses in the months ahead.
(Written February 11, 2010)
Results roll in: Statoil disappoints, Norwegian soars, REC dives...
Quarterly and full-year profit reports are rolling in for Norwegian companies this week and they were showing mixed results. On Thursday, Norway's biggest company Statoil reported fourth-quarter operating results of NOK 33.5 billion, down from NOK 37.8 billion in the same quarter last year, and analysts were disappointed. Statoil blamed its weaker figures on a major fall in gas prices. Norwegian Air, meanwhile, reported its best annual profits ever, just days after rival SAS reported huge losses (see below). The discount airline logged a big jump in operating revenues, and fourth-quarter profits of NOK 7.6 million, compared to losses last year. Full year net was up to NOK 50 million, nearly twice as high as Reuters' analysts expectations. Results of once-high-flying solar firm REC, however, sparked headlines of "full collapse" and "complete breakdown" in Norwegian papers on Thursday. It went from NOK 4.4 billion in pre-tax profits in 2008 to NOK 2.5 billion in losses last year. Operating losses in the fourth quarter alone amounted to NOK 1.8 billion. Prices for their wafers used in solar panels took a dive, hitting the bottom line hard. Meanwhile, Norwegian telecoms firm Telenor was "relieved" that 2009 wasn't as bad as feared. The company logged a slight rise in operating revenues, from NOK 96.2 billion to NOK 97.6 billion, while pre-tax profits fell from NOK 19.4 billion to NOK 15.2 billion. Its fourth-quarter results were better than expected and shareholders (including the Norwegian state) can share a dividend of NOK 4.1 billion, or NOK 2.50 per share. There was no dividend in 2008, but now Telenor is returning to a policy of paying out a dividend equal to between 40 and 50 percent of net profits, reports newspaper Dagens Næringsliv.
(Written February 11, 2010)
Quarterly and full-year profit reports are rolling in for Norwegian companies this week and they were showing mixed results. On Thursday, Norway's biggest company Statoil reported fourth-quarter operating results of NOK 33.5 billion, down from NOK 37.8 billion in the same quarter last year, and analysts were disappointed. Statoil blamed its weaker figures on a major fall in gas prices. Norwegian Air, meanwhile, reported its best annual profits ever, just days after rival SAS reported huge losses (see below). The discount airline logged a big jump in operating revenues, and fourth-quarter profits of NOK 7.6 million, compared to losses last year. Full year net was up to NOK 50 million, nearly twice as high as Reuters' analysts expectations. Results of once-high-flying solar firm REC, however, sparked headlines of "full collapse" and "complete breakdown" in Norwegian papers on Thursday. It went from NOK 4.4 billion in pre-tax profits in 2008 to NOK 2.5 billion in losses last year. Operating losses in the fourth quarter alone amounted to NOK 1.8 billion. Prices for their wafers used in solar panels took a dive, hitting the bottom line hard. Meanwhile, Norwegian telecoms firm Telenor was "relieved" that 2009 wasn't as bad as feared. The company logged a slight rise in operating revenues, from NOK 96.2 billion to NOK 97.6 billion, while pre-tax profits fell from NOK 19.4 billion to NOK 15.2 billion. Its fourth-quarter results were better than expected and shareholders (including the Norwegian state) can share a dividend of NOK 4.1 billion, or NOK 2.50 per share. There was no dividend in 2008, but now Telenor is returning to a policy of paying out a dividend equal to between 40 and 50 percent of net profits, reports newspaper Dagens Næringsliv.
(Written February 11, 2010)
Norwegians flying more often
Just as Scandinavian Airlines (SAS) was reporting more heavy losses came reports that traffic through Norwegian airports actually rose in January, after falling back sharply during the finance crisis year of 2009. New figures from Norway civil aviation authority Avinor showed a 4.2 percent increase in passenger counts for the month, to 2.7 million, compared to January of 2009. The number of passengers flying abroad rose the most, by 5.9 percent, while domestic air traffic was up 3.6 percent. The January figures remain less than in January 2008, when 2.8 million went flying. Norway's main gateway airport, OSL Gardermoen, recorded a 6.2 increase, with equal growth in overseas and domestic passengers.
(Written February 10, 2010)
Just as Scandinavian Airlines (SAS) was reporting more heavy losses came reports that traffic through Norwegian airports actually rose in January, after falling back sharply during the finance crisis year of 2009. New figures from Norway civil aviation authority Avinor showed a 4.2 percent increase in passenger counts for the month, to 2.7 million, compared to January of 2009. The number of passengers flying abroad rose the most, by 5.9 percent, while domestic air traffic was up 3.6 percent. The January figures remain less than in January 2008, when 2.8 million went flying. Norway's main gateway airport, OSL Gardermoen, recorded a 6.2 increase, with equal growth in overseas and domestic passengers.
(Written February 10, 2010)
Analysts give SAS three more years
The future for Scandinavian Airlines (SAS) remained the subject of much speculation on Tuesday, after the long-troubled carrier reported a huge fourth-quarter loss and sought new capital from its shareholders. Several analysts claimed SAS likely won't survive in its present form beyond 2014, because there's a limit to the cost-cuts it can make in the face of severe competition from lower-cost rivals. Some told newspaper Aftenposten they expect a "controlled reorganization" of SAS, perhaps starting with a bankruptcy declaration that would allow formation of a new company without state ownership, with many of its same routes and employees and a restructured fleet of aircraft. "It's not possible to cut your way to profitability," analyst Hans Erik Jacobsen of First Securities said. Another option is for Star Alliance partner Lufthansa to finally step in "and pick up the remains of SAS," said Espen Andersen of the Institute for Strategy and Logistics at business college BI. Opposition politicians weren't enthusiastic about a proposal from the government to pump another NOK 5 billion into SAS to keep it aloft. "It's time for the Norwegian state to sell off its shares in SAS," said Harald Nesvik of the Progress Party. Svein Flåtten of the Conservatives said his party colleagues were "even more skeptical" about a government bailout than they were when SAS sought fresh capital last year as well. Terje Aasland of the ruling Labour Party, however, claimed "the alternative is worse."
(Written February 10, 2010)
The future for Scandinavian Airlines (SAS) remained the subject of much speculation on Tuesday, after the long-troubled carrier reported a huge fourth-quarter loss and sought new capital from its shareholders. Several analysts claimed SAS likely won't survive in its present form beyond 2014, because there's a limit to the cost-cuts it can make in the face of severe competition from lower-cost rivals. Some told newspaper Aftenposten they expect a "controlled reorganization" of SAS, perhaps starting with a bankruptcy declaration that would allow formation of a new company without state ownership, with many of its same routes and employees and a restructured fleet of aircraft. "It's not possible to cut your way to profitability," analyst Hans Erik Jacobsen of First Securities said. Another option is for Star Alliance partner Lufthansa to finally step in "and pick up the remains of SAS," said Espen Andersen of the Institute for Strategy and Logistics at business college BI. Opposition politicians weren't enthusiastic about a proposal from the government to pump another NOK 5 billion into SAS to keep it aloft. "It's time for the Norwegian state to sell off its shares in SAS," said Harald Nesvik of the Progress Party. Svein Flåtten of the Conservatives said his party colleagues were "even more skeptical" about a government bailout than they were when SAS sought fresh capital last year as well. Terje Aasland of the ruling Labour Party, however, claimed "the alternative is worse."
(Written February 10, 2010)
'Sad day' for offshore industry after Aker loses Goliat job
Stock in offshore firm Aker Solutions took a dive and labour unions were furious after Aker lost a bid to build a floating production and supply unit (FPSO) for the Goliat gas and oil field in the Barents Sea, about 85 kilometers north of Hammerfest. Italian oil company Eni owns 65 percent of the license for the field, with Statoil owning the rest, and Eni awarded the FPSO contract to Hyundai of South Korea, saying it followed all international bidding rules. Hyundai offered to do the job for NOK 6.9 billion, much less than Aker Solutions' bid, and that set off criticism over Korean subsidies. Norwegian labour unions were furious the job went to a foreign firm, and they blamed the Norwegian government for "not doing their job" in creating conditions that would have allowed Aker to make a lower bid, or pressured Eni to award the contract locally. Government ministers were as disappointed as the labour leaders, who said it was "a sad day" for Norwegian suppliers in the offshore industry. Newspaper Dagens Næringsliv reported the contract could have provided around 7,000 full-time-equivalent jobs at Aker Solutions' yards in Egersund and Stord. Oil and Energy Minister Terje Riis-Johansen noted, however, that 50 percent of the development of Goliat, valued at NOK 28 billion, will go to Norwegian firms. Sevan of Norway designed the FPSO that Hyundai now will build.
(Written February 9, 2010)
Stock in offshore firm Aker Solutions took a dive and labour unions were furious after Aker lost a bid to build a floating production and supply unit (FPSO) for the Goliat gas and oil field in the Barents Sea, about 85 kilometers north of Hammerfest. Italian oil company Eni owns 65 percent of the license for the field, with Statoil owning the rest, and Eni awarded the FPSO contract to Hyundai of South Korea, saying it followed all international bidding rules. Hyundai offered to do the job for NOK 6.9 billion, much less than Aker Solutions' bid, and that set off criticism over Korean subsidies. Norwegian labour unions were furious the job went to a foreign firm, and they blamed the Norwegian government for "not doing their job" in creating conditions that would have allowed Aker to make a lower bid, or pressured Eni to award the contract locally. Government ministers were as disappointed as the labour leaders, who said it was "a sad day" for Norwegian suppliers in the offshore industry. Newspaper Dagens Næringsliv reported the contract could have provided around 7,000 full-time-equivalent jobs at Aker Solutions' yards in Egersund and Stord. Oil and Energy Minister Terje Riis-Johansen noted, however, that 50 percent of the development of Goliat, valued at NOK 28 billion, will go to Norwegian firms. Sevan of Norway designed the FPSO that Hyundai now will build.
(Written February 9, 2010)
Dairy firm solves mystery of The Great Cheese Robbery
Managers at Norwegian dairy cooperative Tine started noticing around 14 months ago that large quantities of cheese were missing from their warehouse at Mysen, southeast of Oslo. The loss involved cheese used for making pizzas, and when they checked further, reports newspaper Aftenposten, they discovered that even more cheese was missing than initially thought. They suspected theft of pizza cheese valued at NOK 500,000. They launched their own detective work, and discovered a pattern of missing cheese over a period of several months. Suspicions turned to a transport company that shipped cheese for Tine to warehouses in Gudbrandsdalen. Every time a certain truck from the transport firm had visited the Mysen plant, cheese went missing. Tine decided to inform the transport firm, which cooperated in the investigation, and together they tracked the fate of large quantities of stolen cheese with the help of a GPS tracking device. The culprits, transport firm employees, were ultimately caught red-handed outside a pizza restaurant at a shopping center in Biri, and a partner just two days later, after police finally were called in to help with actual arrests. Their trial is due to come up in Gjøvik later this month.
(Written February 9, 2010)
Managers at Norwegian dairy cooperative Tine started noticing around 14 months ago that large quantities of cheese were missing from their warehouse at Mysen, southeast of Oslo. The loss involved cheese used for making pizzas, and when they checked further, reports newspaper Aftenposten, they discovered that even more cheese was missing than initially thought. They suspected theft of pizza cheese valued at NOK 500,000. They launched their own detective work, and discovered a pattern of missing cheese over a period of several months. Suspicions turned to a transport company that shipped cheese for Tine to warehouses in Gudbrandsdalen. Every time a certain truck from the transport firm had visited the Mysen plant, cheese went missing. Tine decided to inform the transport firm, which cooperated in the investigation, and together they tracked the fate of large quantities of stolen cheese with the help of a GPS tracking device. The culprits, transport firm employees, were ultimately caught red-handed outside a pizza restaurant at a shopping center in Biri, and a partner just two days later, after police finally were called in to help with actual arrests. Their trial is due to come up in Gjøvik later this month.
(Written February 9, 2010)
Statoil considers selling off its gas stations
Norway's Statoil is further distancing itself from an earlier strategy of being an integrated oil company active in all functions from exploration to retailing. Now it's announced it plans to evaluate "a new ownership structure" for its energy and retail operations. That suggests Statoil wants to spin off its large chain of gas stations into their own stocklisted company, meaning Statoil likely would no longer be their owner and the station names may change. All told Statoil has more than 2,300 gas stations in Norway and northern Europe, with a major presence in Sweden, Denmark, Poland, Lithuania, Latvia, Estonia and Russia. Analysts welcomed the plan but Statoil's chief founder, Arve Johnsen, protested as did several franchise holders, station managers and customers.
(Written February 4, 2010)
Norway's Statoil is further distancing itself from an earlier strategy of being an integrated oil company active in all functions from exploration to retailing. Now it's announced it plans to evaluate "a new ownership structure" for its energy and retail operations. That suggests Statoil wants to spin off its large chain of gas stations into their own stocklisted company, meaning Statoil likely would no longer be their owner and the station names may change. All told Statoil has more than 2,300 gas stations in Norway and northern Europe, with a major presence in Sweden, Denmark, Poland, Lithuania, Latvia, Estonia and Russia. Analysts welcomed the plan but Statoil's chief founder, Arve Johnsen, protested as did several franchise holders, station managers and customers.
(Written February 4, 2010)
New Swedish shopping center plan upsets Norwegian authorities
Plans to expand a small Swedish retail complex located around 50 meters from the Norwegian border have upset Norwegian authorities, who fear the new shopping center at Långflon, just south of the popular Trysil ski resort, will hurt retailers on the Norwegian side of the border. That's because prices in Sweden are much lower than in Norway, as are taxes, and Norwegians already flock over the borders at Svindesund, Ørje and Magnor to do their shopping. Norwegian highway officials fear more traffic on narrow roads in the area, township officials as far away as Hamar and Elverum fear competition for their own shopping centers, and even cabinet minister Erik Solheim has gotten involved, telling newspaper Aftenposten that the new Swedish shopping center "will hurt trade all over Hedmark County." Swedish officials shrug off the criticism, saying the Norwegians are exaggerating the situation. They say their new shopping center will be small in comparison to those already attracting cross-border trade. The Norwegian authorities may also do well to review their own high-tax policies, which send their citizens over the border in the first place.
(Written February 4, 2010)
Plans to expand a small Swedish retail complex located around 50 meters from the Norwegian border have upset Norwegian authorities, who fear the new shopping center at Långflon, just south of the popular Trysil ski resort, will hurt retailers on the Norwegian side of the border. That's because prices in Sweden are much lower than in Norway, as are taxes, and Norwegians already flock over the borders at Svindesund, Ørje and Magnor to do their shopping. Norwegian highway officials fear more traffic on narrow roads in the area, township officials as far away as Hamar and Elverum fear competition for their own shopping centers, and even cabinet minister Erik Solheim has gotten involved, telling newspaper Aftenposten that the new Swedish shopping center "will hurt trade all over Hedmark County." Swedish officials shrug off the criticism, saying the Norwegians are exaggerating the situation. They say their new shopping center will be small in comparison to those already attracting cross-border trade. The Norwegian authorities may also do well to review their own high-tax policies, which send their citizens over the border in the first place.
(Written February 4, 2010)
Trade surplus among the largest in the world
Only five countries in the world have a trade surplus bigger than Norway's, report news magazine The Economist and newspaper Aftenposten, and one of them isn't entirely comparable. "Little Norway," as the locals often refer to their own country, ranks as just the 116th in the world when measured in terms of population (currently around 4.8 million). Measured in monetary terms, however, Norway's trade surplus of NOK 325 billion (around USD 55 billion) ranks 6th in the world, behind Saudi Arabia, China, Germany, Russia and Ireland. The Irish trade surplus is fueled largely by multinational firms that set up production sites in Ireland because of tax advantages, boosting export income at a time when Ireland's own domestic economy suffered a downturn that led to reduced imports. Ireland's trade surplus doesn't necessarily boost its own revenues or economy, Aftenposten notes, while Norway's trade surplus is based largely on its oil and gas exports that have pumped up the country's economy for years. Few countries in the world thus sell so much overseas and buy so little back as Norway. Nearly 60 percent of Norway's export revenues derived from oil and gas sales, the rest mostly from seafood, electricity, aluminum and other metals products. Only 15 percent of export revenues are generated by manufactured goods, since Norway has high labour costs. Øystein Olsen of state statistic bureau SSB noted that Norway's large trade surplus reflects the country's political decision to save oil and gas revenues for future generations. "If Norway's exports and imports were in balance, it would mean we were using up the value of our oil and gas," Olsen said. "That would be alarming."
(Written February 3, 2010)
Only five countries in the world have a trade surplus bigger than Norway's, report news magazine The Economist and newspaper Aftenposten, and one of them isn't entirely comparable. "Little Norway," as the locals often refer to their own country, ranks as just the 116th in the world when measured in terms of population (currently around 4.8 million). Measured in monetary terms, however, Norway's trade surplus of NOK 325 billion (around USD 55 billion) ranks 6th in the world, behind Saudi Arabia, China, Germany, Russia and Ireland. The Irish trade surplus is fueled largely by multinational firms that set up production sites in Ireland because of tax advantages, boosting export income at a time when Ireland's own domestic economy suffered a downturn that led to reduced imports. Ireland's trade surplus doesn't necessarily boost its own revenues or economy, Aftenposten notes, while Norway's trade surplus is based largely on its oil and gas exports that have pumped up the country's economy for years. Few countries in the world thus sell so much overseas and buy so little back as Norway. Nearly 60 percent of Norway's export revenues derived from oil and gas sales, the rest mostly from seafood, electricity, aluminum and other metals products. Only 15 percent of export revenues are generated by manufactured goods, since Norway has high labour costs. Øystein Olsen of state statistic bureau SSB noted that Norway's large trade surplus reflects the country's political decision to save oil and gas revenues for future generations. "If Norway's exports and imports were in balance, it would mean we were using up the value of our oil and gas," Olsen said. "That would be alarming."
(Written February 3, 2010)
Norway's embassy in Washington DC was on the verge of setting up a new diplomatic post responsible for promoting Norway's business and especially maritime interests, until newspaper Bergens Tidende reported Monday that the post would be partially funded by the Norwegian Shipowners' Association. That sparked criticism that such a post would blur the lines between the roles of diplomat and lobbyist, and on Tuesday Foreign Minister Jonas Gahr Støre (photo) and the minister in charge of business and industry, Trond Giske, changed their minds. "We have decided to reverse the decision to accept a contribution from the shipowners' association, because it would be most unfortunate if it raised questions about the independence, responsibility and loyalty (associated with) the post," wrote Støre in a prepared statement. Professor Eivind Smith at the University of Oslo said he was glad the project was dropped. "Norwegian diplomats work for Norway, period," Smith told newspaper Aftenposten, adding that government representatives must not fall under suspicion because they're paid by someone other than the state of Norway. "This was the first time the government considered an arrangement like this, and it should be the last time," Smith said. The shipowners supported the idea of a diplomatic post that would promote Norway's maritime interests, and claim that's why they had agreed to help fund one after being approached by the authorities. "At the same time we understand that it's important there be no questions around the integrity of the post," said a shipowners' spokesman. Giske, the business minister, said "the most important thing" is that the embassy gets a business-oriented diplomat in Washington, "and I think that it will."
(Written February 3, 2010)
Housing prices rise on eve of interest rate meeting
The board that sets interest rates at Norway's central bank planned a meeting on Wednesday, just after figures were released by the country's real estate brokers showing another rise in housing prices. While they're still falling in many countries, like Great Britain, average prices in Norway were 3.4 percent higher in January than they were in December. Year on year, housing prices were up fully 13.1 percent, according to Norges Eiendomsmeglerforbund and Eiendomsmeglerforetakenes Forening. The figures apply to all types of housing, while the price per square meter for condominiums in Oslo was up 12.9 percent. Average prices ranged from NOK 47,000 per share meter in Oslo's fashionable Frogner district to NOK 36,400 in Grünerløkka, NOK 33,100 in Nordstrand and NOK 25,600 in Grorud. Some analysts fear another residential bubble that will burst, and most attribute the higher prices to low interest rates. The Bank of Norway's board was to evaluate its key lending rates on Wednesday, and forecasts were running three out of five that rates would remain unchanged. While the central bank may be keen to slow consumer spending and housing price hikes with an interest rate hike, it doesn't want the Norwegian krone to get any stronger. "It's a major dilemma," said one analyst. Meanwhile, newspaper Aften notes that despite the higher residential real estate prices in January, price declines in 2008 and early last year mean that prices in Oslo, for example, are only now recovering to where they were back in 2007. When adjusted for inflation, average Oslo prices remain 5.3 percent lower than in August 2007 when the real estate market peaked.
(Written February 2, 2010)
The board that sets interest rates at Norway's central bank planned a meeting on Wednesday, just after figures were released by the country's real estate brokers showing another rise in housing prices. While they're still falling in many countries, like Great Britain, average prices in Norway were 3.4 percent higher in January than they were in December. Year on year, housing prices were up fully 13.1 percent, according to Norges Eiendomsmeglerforbund and Eiendomsmeglerforetakenes Forening. The figures apply to all types of housing, while the price per square meter for condominiums in Oslo was up 12.9 percent. Average prices ranged from NOK 47,000 per share meter in Oslo's fashionable Frogner district to NOK 36,400 in Grünerløkka, NOK 33,100 in Nordstrand and NOK 25,600 in Grorud. Some analysts fear another residential bubble that will burst, and most attribute the higher prices to low interest rates. The Bank of Norway's board was to evaluate its key lending rates on Wednesday, and forecasts were running three out of five that rates would remain unchanged. While the central bank may be keen to slow consumer spending and housing price hikes with an interest rate hike, it doesn't want the Norwegian krone to get any stronger. "It's a major dilemma," said one analyst. Meanwhile, newspaper Aften notes that despite the higher residential real estate prices in January, price declines in 2008 and early last year mean that prices in Oslo, for example, are only now recovering to where they were back in 2007. When adjusted for inflation, average Oslo prices remain 5.3 percent lower than in August 2007 when the real estate market peaked.
(Written February 2, 2010)
Hotels appeal for help
Occupancy rates were fairly strong in Oslo last year, at around 70 percent, but it was a disappointing year for hotels in the tourist areas of western Norway. The situation is so worrisome that the tourism branch of employers organization NHO is appealing to Norwegians to spend their holidays at Norwegian hotels. NHO Reiseliv also wants Norwegian townships and public agencies to hold more seminars and conferences at Norwegian hotels, to help boost their bottom lines. "For many businesses, especially in the districts, 2009 was a meager year," Wenche Salthella of NHO Reiseliv Vest-Norge told news bureau NTB. Seminar and conference sales were down 18.5 percent in the county of Sogn and Fjordane and 23.9 percent in Rogaland. Occupancy rates nationwide fell to around 50 percent, meaning every other bed was empty every night last year. The global finance crisis cut severely into bookings from Great Britain (down 21 percent), Spain (down 15 percent) and the US (down 14 percent) especially. That's also why Norwegian hotels worry about competition from cruise lines (see below). Newspaper Dagens Næringsliv notes, however, that average room rates fell only marginally, down NOK 5 to NOK 863 (about USD 140) per night.
(Written February 2, 2010)
Occupancy rates were fairly strong in Oslo last year, at around 70 percent, but it was a disappointing year for hotels in the tourist areas of western Norway. The situation is so worrisome that the tourism branch of employers organization NHO is appealing to Norwegians to spend their holidays at Norwegian hotels. NHO Reiseliv also wants Norwegian townships and public agencies to hold more seminars and conferences at Norwegian hotels, to help boost their bottom lines. "For many businesses, especially in the districts, 2009 was a meager year," Wenche Salthella of NHO Reiseliv Vest-Norge told news bureau NTB. Seminar and conference sales were down 18.5 percent in the county of Sogn and Fjordane and 23.9 percent in Rogaland. Occupancy rates nationwide fell to around 50 percent, meaning every other bed was empty every night last year. The global finance crisis cut severely into bookings from Great Britain (down 21 percent), Spain (down 15 percent) and the US (down 14 percent) especially. That's also why Norwegian hotels worry about competition from cruise lines (see below). Newspaper Dagens Næringsliv notes, however, that average room rates fell only marginally, down NOK 5 to NOK 863 (about USD 140) per night.
(Written February 2, 2010)
Consulting firms mining more money from the taxpayers
Consultants are securing more and more work from state and local governments and public agencies, and it's worrying some labour unions. The amounts of taxpayer money spent on consultants is also raising some eyebrows. Newspaper Aftenposten reported this week that consulting and accounting firm Deloitte, for example, now generates as much as 60 percent of its consulting revenues from the public sector in Norway. At Capgemini the public share of its revenues is 40 percent. The consultants secure work by offering strategy and management advice, according to Mandag Morgen. While the private sector has cut back on spending, the public sector is heavily not least through stimulus programs, and the consulting firms seem to be following the money. "We have taken this up with the prime minister several times, that more and more of government is being managed based on private sector principles, but the government isn't doing anything about it yet," said Anita Solhaug of a union representing 48,000 employees, Norsk Tjenestemannslag.
(Written February 2, 2010)
Consultants are securing more and more work from state and local governments and public agencies, and it's worrying some labour unions. The amounts of taxpayer money spent on consultants is also raising some eyebrows. Newspaper Aftenposten reported this week that consulting and accounting firm Deloitte, for example, now generates as much as 60 percent of its consulting revenues from the public sector in Norway. At Capgemini the public share of its revenues is 40 percent. The consultants secure work by offering strategy and management advice, according to Mandag Morgen. While the private sector has cut back on spending, the public sector is heavily not least through stimulus programs, and the consulting firms seem to be following the money. "We have taken this up with the prime minister several times, that more and more of government is being managed based on private sector principles, but the government isn't doing anything about it yet," said Anita Solhaug of a union representing 48,000 employees, Norsk Tjenestemannslag.
(Written February 2, 2010)
Long-term unemployment rises
Norway's unemployment rate now stands at 3.3 percent, low in comparison to many other countries, but the total number of persons out of work is up 31 percent from January of last year, reported welfare agency NAV on Thursday. "More people are remaining unemployed longer," said NAV chief Tor Saglie. Around the same number of persons are registering themselves as unemployed, but those already without jobs are boosting the total unemployment rate. The new numbers from NAV show that the number of people out of work for between six and 18 months is double what it was last year at this time. A total of 85,100 persons are now registered as unemployed in Norway, up 31 percent from January 2009. Unemployment is highest among men aged 20-24, at 8 percent, and lowest for women aged 51-59, at 1.5 percent. Unemployment has increased the most in Rogaland County on the west coast, an area heavily dependent on the oil and offshore industry, followed by the counties of Akershus (the Oslo area) and Møre og Romsdal. Unemployment rates are highest in Finnmark in northern Norway, at 4.2 percent, and lowest in Sogn og Fjordane, at 2.5 percent.
(Written January 28, 2010)
Norway's unemployment rate now stands at 3.3 percent, low in comparison to many other countries, but the total number of persons out of work is up 31 percent from January of last year, reported welfare agency NAV on Thursday. "More people are remaining unemployed longer," said NAV chief Tor Saglie. Around the same number of persons are registering themselves as unemployed, but those already without jobs are boosting the total unemployment rate. The new numbers from NAV show that the number of people out of work for between six and 18 months is double what it was last year at this time. A total of 85,100 persons are now registered as unemployed in Norway, up 31 percent from January 2009. Unemployment is highest among men aged 20-24, at 8 percent, and lowest for women aged 51-59, at 1.5 percent. Unemployment has increased the most in Rogaland County on the west coast, an area heavily dependent on the oil and offshore industry, followed by the counties of Akershus (the Oslo area) and Møre og Romsdal. Unemployment rates are highest in Finnmark in northern Norway, at 4.2 percent, and lowest in Sogn og Fjordane, at 2.5 percent.
(Written January 28, 2010)
Statoil pours on the charm over Lofoten
Norwegian oil company Statoil is in the midst of a major offensive to try to build public support for oil drilling off the scenic northern coast around Lofoten. Now the company is tempting opponents to the oil and gas exploration plans with promises of new technology, lots of new jobs and better regulation, reports newspaper Aftenposten. At an Arctic Frontiers conference in Tromsø this week, Statoil director Hege Marie Norheim claimed the company was investing "several hundred million kroner" in new technology that would help it achieve "zero spills" and not interfere with fishing activity in the area. Statoil is well aware that the waters around Lofoten are fertile cod fishing grounds, and Norheim said it wanted "the best possible" contact with the local fishing industry. Its standby emergency vessels can operate in total darkness, if necessary, and the company is committed to environmental preservation, she said. Oil reserves off Lofoten, Norheim added, could represent "half the value of today's total oil fund," she said, and exploration activity would create up to 2,000 new jobs. Environmental groups and the fishing industry continue to oppose oil and gas exploration in the area.
(Written January 28, 2010)
Norwegian oil company Statoil is in the midst of a major offensive to try to build public support for oil drilling off the scenic northern coast around Lofoten. Now the company is tempting opponents to the oil and gas exploration plans with promises of new technology, lots of new jobs and better regulation, reports newspaper Aftenposten. At an Arctic Frontiers conference in Tromsø this week, Statoil director Hege Marie Norheim claimed the company was investing "several hundred million kroner" in new technology that would help it achieve "zero spills" and not interfere with fishing activity in the area. Statoil is well aware that the waters around Lofoten are fertile cod fishing grounds, and Norheim said it wanted "the best possible" contact with the local fishing industry. Its standby emergency vessels can operate in total darkness, if necessary, and the company is committed to environmental preservation, she said. Oil reserves off Lofoten, Norheim added, could represent "half the value of today's total oil fund," she said, and exploration activity would create up to 2,000 new jobs. Environmental groups and the fishing industry continue to oppose oil and gas exploration in the area.
(Written January 28, 2010)
Rich and powerful gather in Davos, but Stoltenberg bows out
A long list of top Norwegian executives were taking time this week to rub elbows with other business leaders at the World Economic Forum in Davos, Switzerland. Newspaper Aftenposten reported that Telenor CEO Jon Fredrik Baksaas, Statoil boss Helge Lund, investor and chairman of Orkla Stein Erik Hagen and the boss of fertilizer firm Yara, Jørgen Ole Haslestad, were among those planning to talk shop and tackle global issues with others in powerful positions. Prime Minister Jens Stoltenberg was also due in Davos, where he was to meet Mexico's president, Felipe Calderon, and other national leaders in an effort to prod forward agreement on climate issues. UN Secretary General Ban Ki-moon was opening the talks, and Stoltenberg was also expected to meet Bill and Melinda Gates, to mark the 10th anniversary of their global vaccination initiative. Stoltenberg, however, cancelled the trip because of a heavy travel program combined with what his office called "a minor respiratory infection." The prime minister "was just in Madrid and travels to India next week," his information chief Trude Måseide told news bureau NTB. That, combined with a cold, "means that he wanted to avoid another flight."
(Written January 26, updated January 28, 2010)
A long list of top Norwegian executives were taking time this week to rub elbows with other business leaders at the World Economic Forum in Davos, Switzerland. Newspaper Aftenposten reported that Telenor CEO Jon Fredrik Baksaas, Statoil boss Helge Lund, investor and chairman of Orkla Stein Erik Hagen and the boss of fertilizer firm Yara, Jørgen Ole Haslestad, were among those planning to talk shop and tackle global issues with others in powerful positions. Prime Minister Jens Stoltenberg was also due in Davos, where he was to meet Mexico's president, Felipe Calderon, and other national leaders in an effort to prod forward agreement on climate issues. UN Secretary General Ban Ki-moon was opening the talks, and Stoltenberg was also expected to meet Bill and Melinda Gates, to mark the 10th anniversary of their global vaccination initiative. Stoltenberg, however, cancelled the trip because of a heavy travel program combined with what his office called "a minor respiratory infection." The prime minister "was just in Madrid and travels to India next week," his information chief Trude Måseide told news bureau NTB. That, combined with a cold, "means that he wanted to avoid another flight."
(Written January 26, updated January 28, 2010)
Cruise and land-based tourism officials 'smoke the peace pipe'
After months of conflict and demands from hotels for cruise ships to pay a new tourism tax, players in both the cruise and land-based tourism industry have agreed on a new strategy that was being handed over to Norway's ministry for industry and trade. "You can say we have smoked the peace pipe," Knut Almquist of employers's group NHO Reiseliv told newspaper Dagens Næringsliv. The steady stream of huge cruise ships sailing into Norwegian fjords irritated land-based hotels, who feel they can't compete with the cruise giants and that they're losing business. While cruise ships reported strong bookings, many Norwegian hotels had a dismal summer season last year. Things got so tense that some hotel owners demanded that the cruise lines should pay a new tax per passenger, to offset marketing costs. But now they've all decided to cooperate "instead of shoot at each other," said Almquist. Attempts will be made to assess the actual economic impact of cruise passengers in Norway, and find ways for the cruise- and land-based sides of the tourism industry to work together.
(Written January 26, 2010)
After months of conflict and demands from hotels for cruise ships to pay a new tourism tax, players in both the cruise and land-based tourism industry have agreed on a new strategy that was being handed over to Norway's ministry for industry and trade. "You can say we have smoked the peace pipe," Knut Almquist of employers's group NHO Reiseliv told newspaper Dagens Næringsliv. The steady stream of huge cruise ships sailing into Norwegian fjords irritated land-based hotels, who feel they can't compete with the cruise giants and that they're losing business. While cruise ships reported strong bookings, many Norwegian hotels had a dismal summer season last year. Things got so tense that some hotel owners demanded that the cruise lines should pay a new tax per passenger, to offset marketing costs. But now they've all decided to cooperate "instead of shoot at each other," said Almquist. Attempts will be made to assess the actual economic impact of cruise passengers in Norway, and find ways for the cruise- and land-based sides of the tourism industry to work together.
(Written January 26, 2010)
More than 40 oil firms secure exploration rights
Norway's oil minister recently approved 38 new licenses for 42 oil companies to search for new oil and gas sources in mature areas of the Norwegian sector of the North Sea. The licensing round, called TFO 2009, left some firms pleased, but disappointed an industry that wanted more exploration rights to buoy the hard-pressed offshore industry. Oil firm Det norske, though, was satisfied, claiming its granting of licenses it had sought was "a recognition of our commitment to drilling in mature areas." The state is hoping the licenses will result in new discoveries near existing oil platforms and infrastructure. Shell, Bridge, Centrica, ConocoPhillips, Dana Petroleum and Marathon were among the firms that can steer exploration operations after the licensing round.
(Written January 26, 2010)
Norway's oil minister recently approved 38 new licenses for 42 oil companies to search for new oil and gas sources in mature areas of the Norwegian sector of the North Sea. The licensing round, called TFO 2009, left some firms pleased, but disappointed an industry that wanted more exploration rights to buoy the hard-pressed offshore industry. Oil firm Det norske, though, was satisfied, claiming its granting of licenses it had sought was "a recognition of our commitment to drilling in mature areas." The state is hoping the licenses will result in new discoveries near existing oil platforms and infrastructure. Shell, Bridge, Centrica, ConocoPhillips, Dana Petroleum and Marathon were among the firms that can steer exploration operations after the licensing round.
(Written January 26, 2010)
Statoil keen on Abu Dhabi's oil reserves
The chief executive of Norwegian state oil company Statoil, Helge Lund, was in Abu Dhabi last week along with Foreign Minister Jonas Gahr Støre, who was in the midst of a major Middle East tour. Newspaper Dagens Næringsliv reported that together, they tried to impress local royalty with Statoil's expertise, as Abu Dhabi sits on oil reserves that may amount to 100 billion barrels plus large quantities of gas. Abu Dhabi's foreign minister said his country was following Statoil closely and was happy "to strengthen its relations with Norway, and definitely with Statoil." He confirmed that Abu Dhabi would study possible energy cooperation with Norway and Statoil. Lund and Støre claimed Norway's state-controlled oil firm was future-oriented, environmentally friendly and a potential partner in Abu Dhabi's oil future. Statoil has long sought new exploration and production areas overseas, as oil reserves in the North Sea run down.
(Written January 26, 2010)
The chief executive of Norwegian state oil company Statoil, Helge Lund, was in Abu Dhabi last week along with Foreign Minister Jonas Gahr Støre, who was in the midst of a major Middle East tour. Newspaper Dagens Næringsliv reported that together, they tried to impress local royalty with Statoil's expertise, as Abu Dhabi sits on oil reserves that may amount to 100 billion barrels plus large quantities of gas. Abu Dhabi's foreign minister said his country was following Statoil closely and was happy "to strengthen its relations with Norway, and definitely with Statoil." He confirmed that Abu Dhabi would study possible energy cooperation with Norway and Statoil. Lund and Støre claimed Norway's state-controlled oil firm was future-oriented, environmentally friendly and a potential partner in Abu Dhabi's oil future. Statoil has long sought new exploration and production areas overseas, as oil reserves in the North Sea run down.
(Written January 26, 2010)
Tycoon happy to be sponsoring cross-country star
Norwegian business tycoon Kjell Inge Røkke is forking over NOK 60 million (around USD 10 million) to sponsor cross-country skiing start Petter Northug (photo) and other members of the Norwegian national ski team. In return, advertising executives predict, Røkke stands to get as much as NOK 200 million worth of media exposure for his industrial concern Aker. Northug is Norway's biggest medal hope at the upcoming Winter Olympics in Vancouver, and he already has attracted massive media attention this season, both in Norway and abroad. Røkke clearly likes to rub elbows with sports stars, having earlier made his private jet available for others like cross-country legend Bjørn Dæhlie and hosting biathlon star Ole Einar Bjørndalen at dinner.
(Written January 24, 2010)
Norwegian business tycoon Kjell Inge Røkke is forking over NOK 60 million (around USD 10 million) to sponsor cross-country skiing start Petter Northug (photo) and other members of the Norwegian national ski team. In return, advertising executives predict, Røkke stands to get as much as NOK 200 million worth of media exposure for his industrial concern Aker. Northug is Norway's biggest medal hope at the upcoming Winter Olympics in Vancouver, and he already has attracted massive media attention this season, both in Norway and abroad. Røkke clearly likes to rub elbows with sports stars, having earlier made his private jet available for others like cross-country legend Bjørn Dæhlie and hosting biathlon star Ole Einar Bjørndalen at dinner.
(Written January 24, 2010)
Norwegian Air furious over competitor's stunt
Low-fare airline Norwegian was the target of a false bookings stunt by rival Danish airline Cimber Sterling that may cause heads to role at Cimber Sterling. Its management allegedly bought up nearly all the Norwegian tickets they could when Norwegian launched an introductory promotion, offering flights between Copenhagen and Karup for just one Danish krone. Cimber Sterling employees bought hundreds of tickets in false names, including Donald Duck, and then never turned up for the flights, thus pushing normal customers out of the market and leaving Norwegian to fly with empty jets. Norwegian boss Bjørn Kjos was not amused, and is charging Cimber Sterling with violation of competition laws. Cimber Sterling leaders have since apologized. Norwegian cancelled its promotional campaign.
(Written January 21, 2010)
Low-fare airline Norwegian was the target of a false bookings stunt by rival Danish airline Cimber Sterling that may cause heads to role at Cimber Sterling. Its management allegedly bought up nearly all the Norwegian tickets they could when Norwegian launched an introductory promotion, offering flights between Copenhagen and Karup for just one Danish krone. Cimber Sterling employees bought hundreds of tickets in false names, including Donald Duck, and then never turned up for the flights, thus pushing normal customers out of the market and leaving Norwegian to fly with empty jets. Norwegian boss Bjørn Kjos was not amused, and is charging Cimber Sterling with violation of competition laws. Cimber Sterling leaders have since apologized. Norwegian cancelled its promotional campaign.
(Written January 21, 2010)
Sun not shining so brightly on REC
Solar firm Renewable Energy Corp (REC) has seen around NOK 125 billion of its market value evaporate in the past few years, reports newspaper Aftenposten, as cheaper competitors break into their market for manufacturing the components they make for solar panels. REC's stock topped out in the fall of 2007 and has been on the decline since. Prices for REC's products have fallen much faster than expected, after major customers in Spain and Germany lost government subsidies. Supply for solar cells continues to outpace demand. Among the losers is billionaire Stein Erik Hagen, the retailing tycoon who went on to head Orkla and has invested heavily in REC. Some believe the future for solar energy firms remains bright, but few analysts think their stock will return to earlier highs, reports Aftenposten.
(Written January 21, 2010)
Solar firm Renewable Energy Corp (REC) has seen around NOK 125 billion of its market value evaporate in the past few years, reports newspaper Aftenposten, as cheaper competitors break into their market for manufacturing the components they make for solar panels. REC's stock topped out in the fall of 2007 and has been on the decline since. Prices for REC's products have fallen much faster than expected, after major customers in Spain and Germany lost government subsidies. Supply for solar cells continues to outpace demand. Among the losers is billionaire Stein Erik Hagen, the retailing tycoon who went on to head Orkla and has invested heavily in REC. Some believe the future for solar energy firms remains bright, but few analysts think their stock will return to earlier highs, reports Aftenposten.
(Written January 21, 2010)
Typographers' union's cashier stole the cash
Members of the typographers' union at newspaper Aftenposten, along with the entire media company, were stunned this week to learn that a trusted member of their union had drained their account. The 59-year-old longtime employee had served as cashier and thus had access to the union's bank account containing around NOK 7.5 million (nearly USD 1.3 million). This week the balance stood at NOK 200 and union members had to accept that money they'd saved for 30 years was gone. The cashier had admitted his withdrawals to union chairman Per Syversen just days after resigning with a severance pay package from Aftenposten. "This came as a shock, and is a personal tragedy," Syversen said. The union filed police charges and the man faced a custody hearing on Thursday. He reportedly claims he was the victim of a swindle involving a "mafia" in Ghana, where he recently had entered into a romantic relationship. Aftenposten reported that he had intended to move to Ghana with his new sweetheart. Union members, who once had one of the largest union bank accounts in the country, said "new routines" would be put in place for managing their money.
(Written January 20, 2010)
Members of the typographers' union at newspaper Aftenposten, along with the entire media company, were stunned this week to learn that a trusted member of their union had drained their account. The 59-year-old longtime employee had served as cashier and thus had access to the union's bank account containing around NOK 7.5 million (nearly USD 1.3 million). This week the balance stood at NOK 200 and union members had to accept that money they'd saved for 30 years was gone. The cashier had admitted his withdrawals to union chairman Per Syversen just days after resigning with a severance pay package from Aftenposten. "This came as a shock, and is a personal tragedy," Syversen said. The union filed police charges and the man faced a custody hearing on Thursday. He reportedly claims he was the victim of a swindle involving a "mafia" in Ghana, where he recently had entered into a romantic relationship. Aftenposten reported that he had intended to move to Ghana with his new sweetheart. Union members, who once had one of the largest union bank accounts in the country, said "new routines" would be put in place for managing their money.
(Written January 20, 2010)
Shipowners' losses are coastal towns' gains
Tough shipping markets have forced several Norwegian shipowning companies to pull their vessels out of service and put them in lay-up, while they wait for better times. A small fleet of vessels is currently tied up off the coast at Lyngdal, where township officials are logging unexpected revenues on harbor fees and a host of other services. "I think it's sad that the ships are in lay-up, but it's positive that they came here," harbor chief Jane Arnesen told newspaper VG. Seismic firm Petroleum Geo-Services has had two vessels laid up off Lyngdal since October 2008, while shipowning firm Wilh Wilhelmsen has two of its large car carriers tied up there as well. With demand for new cars way down, Wallenius Wilhelmsen also has two ships laid up. Several more containerships are tied up off Flekkefjord. All told nearly 30 ships are idled off the Norwegian coast. "It's a clear reflection of what the finance crisis has done to international shipping," said Odd Einar Mæland, harbor director at Karmsund.
(Written January 20, 2010)
Tough shipping markets have forced several Norwegian shipowning companies to pull their vessels out of service and put them in lay-up, while they wait for better times. A small fleet of vessels is currently tied up off the coast at Lyngdal, where township officials are logging unexpected revenues on harbor fees and a host of other services. "I think it's sad that the ships are in lay-up, but it's positive that they came here," harbor chief Jane Arnesen told newspaper VG. Seismic firm Petroleum Geo-Services has had two vessels laid up off Lyngdal since October 2008, while shipowning firm Wilh Wilhelmsen has two of its large car carriers tied up there as well. With demand for new cars way down, Wallenius Wilhelmsen also has two ships laid up. Several more containerships are tied up off Flekkefjord. All told nearly 30 ships are idled off the Norwegian coast. "It's a clear reflection of what the finance crisis has done to international shipping," said Odd Einar Mæland, harbor director at Karmsund.
(Written January 20, 2010)
Norway emerges as Sweden's biggest export market
Norway has surpassed Germany as the most important export market for Swedish goods and services. Even though Norway has a population of less than 5 million, compared to Germany's 82 million, newspaper Svenska Dagbladet reports that Norwegians spent a total of SEK 87.4 billion on products and services from Sweden during the first 10 months of last year. The Germans spent SEK 84.8 billion during the same period. The value of Swedish exports to both Germany and Norway fell in 2009, by 20 percent to Germany and 10 percent to Norway. Sales of Swedish furniture, along with the cross-border trade that lures thousands of Norwegians over the border to shop in cheaper Sweden, accounted for much of the business. The value of the shopping done by Norwegians in Sweden (estimated at SEK 12 billion a year) is considered part of the Swedish export trade, according to Swedish statistics bureau SCB, because it involves private persons who take the goods home with them.
(Written January 18, 2010)
Norwegian shoppers lined up at a grocery store on the Swedish side of the border. PHOTO: Views and News
(Written January 18, 2010)
Lofoten may not boast as much oil and gas after all
Oil companies and most of Norway's offshore industry have long lusted after the oil and gas resources believed to be lying under the seabed off the scenic coast of northern Norway, not least around Lofoten. A geologist now warns, however, that much of the area's oil and gas resources may already have leaked out of natural reservoirs during the past 50 million years. "I don't think there's a (large) new field there," senior geologist Bent Kjølhamar of TGS Nopec told newspaper Aftenposten during the weekend. "We have become more reserved in our faith in the areas outside Lofoten and Vesterålen." The issue of oil exploration and drilling off Lofoten has been hotly debated for the past year, and is due for government review later this autumn.
(Written January 18, 2010)
Oil companies and most of Norway's offshore industry have long lusted after the oil and gas resources believed to be lying under the seabed off the scenic coast of northern Norway, not least around Lofoten. A geologist now warns, however, that much of the area's oil and gas resources may already have leaked out of natural reservoirs during the past 50 million years. "I don't think there's a (large) new field there," senior geologist Bent Kjølhamar of TGS Nopec told newspaper Aftenposten during the weekend. "We have become more reserved in our faith in the areas outside Lofoten and Vesterålen." The issue of oil exploration and drilling off Lofoten has been hotly debated for the past year, and is due for government review later this autumn.
(Written January 18, 2010)
Norwegians spend billions on remodeling
Housing standards in Norway are high, and near-constant remodeling is keeping them that way, report industry experts. Analyst Bjørn Erik Øye of the Prognosesenteret told newspaper Aftenposten last week that Norwegians have spent an estimated NOK 853 billion on home remodeling projects during the past 25 years. "In practice, that means that almost every single home in Norway has undergone nearly NOK 400,000 worth of renovations since 1985," Øye said. He noted that home prices have risen an average 6 percent per year since 1985, and that around 17 percent of that price growth is linked to Norwegians' eagerness to remodel. "Even during the finance crisis people have continued to remodel," said Morten Rudningen of the Sigdal Kjøkkensenter in Lørenskog. "The private market has been stable for us."
(Written January 18, 2010)
Housing standards in Norway are high, and near-constant remodeling is keeping them that way, report industry experts. Analyst Bjørn Erik Øye of the Prognosesenteret told newspaper Aftenposten last week that Norwegians have spent an estimated NOK 853 billion on home remodeling projects during the past 25 years. "In practice, that means that almost every single home in Norway has undergone nearly NOK 400,000 worth of renovations since 1985," Øye said. He noted that home prices have risen an average 6 percent per year since 1985, and that around 17 percent of that price growth is linked to Norwegians' eagerness to remodel. "Even during the finance crisis people have continued to remodel," said Morten Rudningen of the Sigdal Kjøkkensenter in Lørenskog. "The private market has been stable for us."
(Written January 18, 2010)
Shipowners took tax battle to court
Norwegian shipowners gathered in the country's highest court this week, to continue their legal battle against paying a huge tax bill the state claims it's owed. Tax authorities insist that the shipowners owe the state treasury NOK 21 billion in back taxes, stemming from a change in tax regulations in 2007. New rules led to claims that the shipowners should pay tax on income and capital gains that previously was tax-free, reports news bureau NTB, and the government wants back taxes from 55 shipowning companies. The largest single claim amounts to NOK 3.9 billion but the shipowners are resisting payment, on the grounds all the claims violate Norway's constitution that prevents new laws from having a retroactive effect. State prosecutors say the tax claims don't violate the constitution because an earlier law from 1996 merely postponed new tax rules and didn't provide for any final tax exemptions. The Norwegian Shipowners' Association fears the tax claims, if upheld, can force some shipowning firms into bankruptcy. A ruling from Norway's Supreme Court was expected within a month.
(Written January 14, 2010)
Norwegian shipowners gathered in the country's highest court this week, to continue their legal battle against paying a huge tax bill the state claims it's owed. Tax authorities insist that the shipowners owe the state treasury NOK 21 billion in back taxes, stemming from a change in tax regulations in 2007. New rules led to claims that the shipowners should pay tax on income and capital gains that previously was tax-free, reports news bureau NTB, and the government wants back taxes from 55 shipowning companies. The largest single claim amounts to NOK 3.9 billion but the shipowners are resisting payment, on the grounds all the claims violate Norway's constitution that prevents new laws from having a retroactive effect. State prosecutors say the tax claims don't violate the constitution because an earlier law from 1996 merely postponed new tax rules and didn't provide for any final tax exemptions. The Norwegian Shipowners' Association fears the tax claims, if upheld, can force some shipowning firms into bankruptcy. A ruling from Norway's Supreme Court was expected within a month.
(Written January 14, 2010)
Continental adds new non-stop flight to the US
US-based Continental Airlines plans to add a second non-stop flight between Oslo and New York (Newark) this summer, reports newspaper Aftenposten. That will bring the number of non-stop flights between Norway and the US to three during the summer months, since Continental already has one route to Newark and US Airways runs one between Oslo and Philadelphia from May 14 to October 2. Tom Grundstad, head of Continental in Norway, told Aftenposten that the airline's Oslo-Newark route has been a success both in terms of passenger counts and the bottom line, since it ranks as among Continental's three most profitable flights to Europe. Starting in May, there will be departures from Oslo's main airport at Gardermoen at 11:25am to Newark on Continental, 12:55pm to Philadelphia on US Airways and 1:05pm to Newark on Continental, which will run the later flight three times a week (Wednesday, Thursday and Saturday) from May 28 to September 6. Both carriers are now members of Star Alliance, of which Scandinavian Airlines (SAS) was a founding member. SAS also runs flights to the US (to cities including Newark, Chicago, Seattle and Washington DC) but no intercontinental flights leave from Norway, requiring passengers starting their travel in Norway to change planes in either Stockholm or Copenhagen.
(Written January 14, 2010)
US-based Continental Airlines plans to add a second non-stop flight between Oslo and New York (Newark) this summer, reports newspaper Aftenposten. That will bring the number of non-stop flights between Norway and the US to three during the summer months, since Continental already has one route to Newark and US Airways runs one between Oslo and Philadelphia from May 14 to October 2. Tom Grundstad, head of Continental in Norway, told Aftenposten that the airline's Oslo-Newark route has been a success both in terms of passenger counts and the bottom line, since it ranks as among Continental's three most profitable flights to Europe. Starting in May, there will be departures from Oslo's main airport at Gardermoen at 11:25am to Newark on Continental, 12:55pm to Philadelphia on US Airways and 1:05pm to Newark on Continental, which will run the later flight three times a week (Wednesday, Thursday and Saturday) from May 28 to September 6. Both carriers are now members of Star Alliance, of which Scandinavian Airlines (SAS) was a founding member. SAS also runs flights to the US (to cities including Newark, Chicago, Seattle and Washington DC) but no intercontinental flights leave from Norway, requiring passengers starting their travel in Norway to change planes in either Stockholm or Copenhagen.
(Written January 14, 2010)
State may compensate for 'stolen' company
There's been a new wave of white-collar crime in Norway that involves theft of entire companies, carried out by thieves who send in fictional corporate reports to state authorities and claim they've taken over as board members. The state has in turn sent out new corporate confirmation papers, allowing the thieves to use the company's registration number to obtain credit and run up huge bills. Newspaper Dagens Næringsliv (DN) reports that a lack of control mechanisms has resulted in some victimized companies getting hit with huge financial claims run up by the thieves. One travel agency in Bergen that was in the process of dissolution suddenly faced claims of several hundred thousand kroner after their company was "stolen," but now DN reports that state authorities may pick up the bill at the same time they invoke tougher monitoring of such attempted fraud.
(Written January 13, 2010)
There's been a new wave of white-collar crime in Norway that involves theft of entire companies, carried out by thieves who send in fictional corporate reports to state authorities and claim they've taken over as board members. The state has in turn sent out new corporate confirmation papers, allowing the thieves to use the company's registration number to obtain credit and run up huge bills. Newspaper Dagens Næringsliv (DN) reports that a lack of control mechanisms has resulted in some victimized companies getting hit with huge financial claims run up by the thieves. One travel agency in Bergen that was in the process of dissolution suddenly faced claims of several hundred thousand kroner after their company was "stolen," but now DN reports that state authorities may pick up the bill at the same time they invoke tougher monitoring of such attempted fraud.
(Written January 13, 2010)
Pareto pockets huge profits in a crisis year
Last year didn't amount to a financial crisis for Oslo-based brokerage firm Pareto Securities. Newspaper Dagens Næringsliv (DN) reports that Pareto generated NOK 800 million before paying out bonuses and tax claims, and boosted staff by 23 in 2009. The profits stemmed from Pareto's work in restructuring debt for pressured companies, and takeovers of other firms, according to DN. "We are extremely satisfied with the results for 2009," managing director Ole Henrik Bjørge told DN. Pareto had already earned NOK 441 million by the end of the third quarter and then had a strong fourth quarter. Bjørge wouldn't say how much of the profits would be paid out in bonuses to the firm's 398 employees. Pareto, founded in 1986, has developed into a wide-ranging financial services firm with offices in most major Norwegian cities, Singapore and New York.
(Written January 13, 2010)
Last year didn't amount to a financial crisis for Oslo-based brokerage firm Pareto Securities. Newspaper Dagens Næringsliv (DN) reports that Pareto generated NOK 800 million before paying out bonuses and tax claims, and boosted staff by 23 in 2009. The profits stemmed from Pareto's work in restructuring debt for pressured companies, and takeovers of other firms, according to DN. "We are extremely satisfied with the results for 2009," managing director Ole Henrik Bjørge told DN. Pareto had already earned NOK 441 million by the end of the third quarter and then had a strong fourth quarter. Bjørge wouldn't say how much of the profits would be paid out in bonuses to the firm's 398 employees. Pareto, founded in 1986, has developed into a wide-ranging financial services firm with offices in most major Norwegian cities, Singapore and New York.
(Written January 13, 2010)
Norway claims it will stand by Iceland
The finance minister for economically battered Iceland candidly admitted it "was no coincidence" that Norway topped his list of countries to visit as his homeland tries to emerge from the ruins of its banks. Steingrimur J Sigfusson visited both Norwegian Finance Minister Sigbjørn Johnsen and Foreign Minister Jonas Gahr Støre late last week, and they told him that the Norwegian government thinks both the Nordic countries and the International Monetary Fund (IMF) should carry out their loan program for Iceland. The Norwegian verbal support comes despite the Icelandic president's refusal to sign a controversial measure approved by the Icelandic parliament that reportedly would leave Icelandic citizens footing the bill for billions owed to the Netherlands and Great Britain after the banking collapse. The so-called Icesave measure will now be put to the citizens themselves, in a referendum set for February 20. It has been agreed to repay the debt, but the president objected to the parliament's repayment terms, which would tax Icelandic citizens hard for a bank collapse rooted in the risks taken by financiers. Sigfusson appeared pleased by the support from Norway, which has committed around NOK 4 billion in emergency financing. Støre wouldn't say, however, what will happen if referendum results reject repayment.
(Written January 11, 2010)
The finance minister for economically battered Iceland candidly admitted it "was no coincidence" that Norway topped his list of countries to visit as his homeland tries to emerge from the ruins of its banks. Steingrimur J Sigfusson visited both Norwegian Finance Minister Sigbjørn Johnsen and Foreign Minister Jonas Gahr Støre late last week, and they told him that the Norwegian government thinks both the Nordic countries and the International Monetary Fund (IMF) should carry out their loan program for Iceland. The Norwegian verbal support comes despite the Icelandic president's refusal to sign a controversial measure approved by the Icelandic parliament that reportedly would leave Icelandic citizens footing the bill for billions owed to the Netherlands and Great Britain after the banking collapse. The so-called Icesave measure will now be put to the citizens themselves, in a referendum set for February 20. It has been agreed to repay the debt, but the president objected to the parliament's repayment terms, which would tax Icelandic citizens hard for a bank collapse rooted in the risks taken by financiers. Sigfusson appeared pleased by the support from Norway, which has committed around NOK 4 billion in emergency financing. Støre wouldn't say, however, what will happen if referendum results reject repayment.
(Written January 11, 2010)
Public-sector job growth 'cause for worry'
Norway's private sector has lost an estimated 65,000 jobs in the past year, while the number of jobs within the state and local governments has risen, reports newspaper Aftenposten. "There's cause to be worried about this," said the head of Norwegian employers' association NHO John G Bernander. NHO hosted its annual conference at the Opera House in Oslo last week, drawing large numbers of both public- and private-sector officials including Prime Minister Jens Stoltenberg and Finance Minister Sigbjørn Johnsen. Stoltenberg, who heads Norway's Labour Party, noted that many in private business were "opponents in principle" to state involvement in the private sector, but now have enthusiastically embraced state support through stimulus packages. "Welcome, we are here," Stoltenberg said with exaggerated irony. State funding has created around 25,000 jobs in the public sector and use of Norwegian oil revenues has doubled since 2008. Bernander said he's worried because "growth, creativity and business activity comes largely from sectors exposed to competition." Johnsen said he predicts the public sector will continue to grow. Most of the private sector job losses have occurred in heavy industry, construction and retailing.
(Written January 11, 2010)
Norway's private sector has lost an estimated 65,000 jobs in the past year, while the number of jobs within the state and local governments has risen, reports newspaper Aftenposten. "There's cause to be worried about this," said the head of Norwegian employers' association NHO John G Bernander. NHO hosted its annual conference at the Opera House in Oslo last week, drawing large numbers of both public- and private-sector officials including Prime Minister Jens Stoltenberg and Finance Minister Sigbjørn Johnsen. Stoltenberg, who heads Norway's Labour Party, noted that many in private business were "opponents in principle" to state involvement in the private sector, but now have enthusiastically embraced state support through stimulus packages. "Welcome, we are here," Stoltenberg said with exaggerated irony. State funding has created around 25,000 jobs in the public sector and use of Norwegian oil revenues has doubled since 2008. Bernander said he's worried because "growth, creativity and business activity comes largely from sectors exposed to competition." Johnsen said he predicts the public sector will continue to grow. Most of the private sector job losses have occurred in heavy industry, construction and retailing.
(Written January 11, 2010)
REC shares voted as having the most potential for rising in value
Norwegian solar energy firm ranked as the most-favoured share issue by 1,500 members of the Norwegian financial analysts association NFF. The members were polled for newspaper Dagens Næringsliv (DN), which sought to pick out the shares viewed as having the most potential to rise during 2010. Analysts think REC (Renewable Energy Corp), which has had some spectacular rises and falls in the past few years, will be the strongest issue on the Oslo Stock Exchange. "How nice that folks view our future so positively," REC boss Ole Enger told DN. He wouldn't offer his own predictions for REC's share performance, or what the market can expect from REC during the next year. "But we can hope that the finance crisis will end and that we can revert to normal conditions," Enger said. The two other Norwegian companies that were most recommended by the analyst group's members: Tanker firm Frontline and dry bulk shipping company Golden Ocean Group. Both are controlled by Norwegian shipowner and businessman John Fredriksen.
(Written January 8, 2010)
Norwegian solar energy firm ranked as the most-favoured share issue by 1,500 members of the Norwegian financial analysts association NFF. The members were polled for newspaper Dagens Næringsliv (DN), which sought to pick out the shares viewed as having the most potential to rise during 2010. Analysts think REC (Renewable Energy Corp), which has had some spectacular rises and falls in the past few years, will be the strongest issue on the Oslo Stock Exchange. "How nice that folks view our future so positively," REC boss Ole Enger told DN. He wouldn't offer his own predictions for REC's share performance, or what the market can expect from REC during the next year. "But we can hope that the finance crisis will end and that we can revert to normal conditions," Enger said. The two other Norwegian companies that were most recommended by the analyst group's members: Tanker firm Frontline and dry bulk shipping company Golden Ocean Group. Both are controlled by Norwegian shipowner and businessman John Fredriksen.
(Written January 8, 2010)
Scandinavian Airlines (SAS) soared beyond its arch-rival Norwegian Air in terms of on-time arrivals and minimal passenger disruption last month, reports newspaper Aftenposten. Storms and sub-freezing temperatures all over the country caused big problems for Norwegian, but not for SAS, which literally weathered the storm and could report that 85 percent of its flights were on schedule in December. Norwegian, meanwhile, experienced a near breakdown in service when on-time flights fell to just 7.9 percent at one point. "We are not satisfied," said Norwegian spokesperson Anne-Sissel Skånvik, who blamed staffing shortages at Røros Flyservice, which handles Norwegian's operations, and bad weather. The delays continued into the New Year and last Sunday, only 40 percent of Norwegian's flights were on time, according to Aftenposten. The same bad weather didn't seem to affect SAS. "Unlike our competitor, we have two reserve aircraft standing by at all times in case of technical problems," said SAS spokesman Knut Morten Johansen. "We have spent a lot of time focusing on timeliness during the past three years." He said competition from Norwegian "has made SAS better, while we see that Norwegian has a ways to go in matching SAS' level of quality in several areas." Norwegian earlier has used every opportunity to bash SAS. Now it was SAS' turn to gloat. Officials at Oslo's main airport at Gardermoen indicated that Norwegian's problems hurt its own punctuality. "When such a big airline as Norwegian has such problems maintaining its schedule over a lengthy period, like we've seen in December and now in January, it clearly has negative consequences for us," OSL spokesman Jo Kosbro told Aftenposten.
(Written January 7, 2010)
Analysts and executives at Oslo-based Opera Software were applauding the appointment of a new operational chief executive, while the firm's high-profile co-founder takes on a new, more technology-oriented role. Jon S von Tetzchner, one of Norway's most successful entrepreneurs, confirmed Tuesday that he was giving up his 15-year-long role as chief executive of Oslo-based browser firm Opera Software. The move follows a long power struggle with shareholders, reports newspaper Dagens Næringsliv (DN), but now most players involved seem pleased with the new management structure. Von Tetzchner won't be leaving the firm he helped co-found, staying on as "strategic consultant" in a role that's expected to give him more freedom as a technology innovator and visionary. Lars Boilesen, who returned to Opera Software last year after a four-year stint at Alcatel-Lucent, will take over as CEO, with von Tetzchner calling him "very results-oriented, focused and hard-working." Von Tetzchner told DN that Boilesen, who worked earlier at Opera Software, was brought back last January with the intention that he would take over and now both shareholders and analysts seem pleased and relieved after a major loss and drop in Opera Software's share price last year. That had intensified what DN referred to as the power struggle between von Tetzchner and other shareholders, and spurred debate over whether founders made good managers. Von Tetzchner, age 42, noted that Opera Software now has 100 million users of its browser products and that its growth "hasn't been bad" during his tenure. He claimed he had nothing more to prove but had no intention of resting on his laurels. He drew praise from current and former board members, with Christian Thommessen claiming that "all the troops in the company" support the new management structure with Boilesen in charge of operations. Opera Software now has more than 700 employees. Its stock initially dipped on news of von Tetzchner's move from the CEO's post, but later recovered.
(Written January 6, 2010)
Electric car firm Think launches production in the US
The long-running drama around electric carmaker Think, based in Aurskog northeast of Oslo, entered a new act this week when it announced start-up of production in Elkhart, Indiana. The company, which has faced several rounds of bankruptcy and once was owned by Ford Motor Co, has launched production in Finland as well and now claims its future really is bright because of new interest in environmentally friendly vehicles. Newspaper Dagens Næringsliv (DN) said Think's new operation in Indiana will enjoy tax advantages and a USD 3 million grant from state authorities in return for the creation of more than 400 needed jobs in an area hard-hit by unemployment. Think chief executive Richard Canny said the goal is to produce 20,000 Think cars a year from a location with an automobile-oriented labour force and better access to the US market, which showed strong demand for Think cars several years ago before financial problems and Ford's exit halted production in Norway. Canny said there are even more incentives now for buyers to choose electric vehicles. Sales of the Think City model will start this year, he said, while Think's headquarters will remain in Norway.
(Written January 6, 2010)
The long-running drama around electric carmaker Think, based in Aurskog northeast of Oslo, entered a new act this week when it announced start-up of production in Elkhart, Indiana. The company, which has faced several rounds of bankruptcy and once was owned by Ford Motor Co, has launched production in Finland as well and now claims its future really is bright because of new interest in environmentally friendly vehicles. Newspaper Dagens Næringsliv (DN) said Think's new operation in Indiana will enjoy tax advantages and a USD 3 million grant from state authorities in return for the creation of more than 400 needed jobs in an area hard-hit by unemployment. Think chief executive Richard Canny said the goal is to produce 20,000 Think cars a year from a location with an automobile-oriented labour force and better access to the US market, which showed strong demand for Think cars several years ago before financial problems and Ford's exit halted production in Norway. Canny said there are even more incentives now for buyers to choose electric vehicles. Sales of the Think City model will start this year, he said, while Think's headquarters will remain in Norway.
(Written January 6, 2010)
Seafood sales set another record, police investigate fish farming firm
Norwegian seafood exports broke more records during 2009, marking the seventh year in a row of strong growth in both revenues and quantities. Revenues last year jumped more than 15 percent, according to the Norwegian Seafood Export Council (Eksportutvalget for fisk), to NOK 44.7 billion (nearly USD 8 billion). That makes seafood Norway's biggest industry after oil, rising NOK 6 billion in value from 2008 to 2009. Norway exports seafood, mostly salmon, to around 140 countries around the world, with France and Russia making up the biggest markets. Sales to Russia and the US increased the most last year. Farmed fish, under pressure in recent months, made up NOK 26 billion of the total revenues, with wild seafood caught by more traditional means amounting for sales of NOK 18.7 billion. The fish farming industry continues to battle salmon lice, while a firm owned by the family of Norway's new fisheries minister, Lisbeth Berg-Hansen, is under investigation by Norway's white-collar crime unit Økokrim. Thousands of fish escaped from a Sinkaberg-Hansen facility, which can threaten wild salmon, and investigators will try to determine whether Berg-Hansen's family firm committed any violations. The company claims around 10,000 fish escaped, while environmental groups and some authorities believe as many as 90,000 escaped. Berg-Hansen told news bureau NTB that she welcomes the investigation even though it may result in either fines or even prison terms for its managers.
(Written January 6, 2010)
Norwegian seafood exports broke more records during 2009, marking the seventh year in a row of strong growth in both revenues and quantities. Revenues last year jumped more than 15 percent, according to the Norwegian Seafood Export Council (Eksportutvalget for fisk), to NOK 44.7 billion (nearly USD 8 billion). That makes seafood Norway's biggest industry after oil, rising NOK 6 billion in value from 2008 to 2009. Norway exports seafood, mostly salmon, to around 140 countries around the world, with France and Russia making up the biggest markets. Sales to Russia and the US increased the most last year. Farmed fish, under pressure in recent months, made up NOK 26 billion of the total revenues, with wild seafood caught by more traditional means amounting for sales of NOK 18.7 billion. The fish farming industry continues to battle salmon lice, while a firm owned by the family of Norway's new fisheries minister, Lisbeth Berg-Hansen, is under investigation by Norway's white-collar crime unit Økokrim. Thousands of fish escaped from a Sinkaberg-Hansen facility, which can threaten wild salmon, and investigators will try to determine whether Berg-Hansen's family firm committed any violations. The company claims around 10,000 fish escaped, while environmental groups and some authorities believe as many as 90,000 escaped. Berg-Hansen told news bureau NTB that she welcomes the investigation even though it may result in either fines or even prison terms for its managers.
(Written January 6, 2010)
Housing prices sank in December, but up 14.6 percent from 2008
After 11 months on the rise, average housing prices fell from November to December 2009, according to sales analysis carried out for Norway's real estate brokers association NEF (Norges Eiendomsmeglerforbund), multiple listing service Finn.no and real estate group EFF (Eiendomsmeglerforetakenes Forening). Prices per square foot last month were up 14.6 percent (from NOK 21,500 to 24,600) from December 2008 but fell 3.3 percent for single-family homes, 1.3 percent for townhouses and 0.8 percent for condominiums from November. While most of the rest of the world saw huge declines in the real estate market, Norway's strong economy, pent-up demand and record low interest rates fueled the housing market nationwide. Finn Tveter of NEF thinks the market is still strong after 2009 proved to be "much better than all expectations." Telemark and Larvik registered the strongest gains. It took on average 41 days to sell a home in Norway last year, with homes selling most quickly in Trondheim (24 days) and slowest in Tromsø (69 days).
(Written January 5, 2010)
After 11 months on the rise, average housing prices fell from November to December 2009, according to sales analysis carried out for Norway's real estate brokers association NEF (Norges Eiendomsmeglerforbund), multiple listing service Finn.no and real estate group EFF (Eiendomsmeglerforetakenes Forening). Prices per square foot last month were up 14.6 percent (from NOK 21,500 to 24,600) from December 2008 but fell 3.3 percent for single-family homes, 1.3 percent for townhouses and 0.8 percent for condominiums from November. While most of the rest of the world saw huge declines in the real estate market, Norway's strong economy, pent-up demand and record low interest rates fueled the housing market nationwide. Finn Tveter of NEF thinks the market is still strong after 2009 proved to be "much better than all expectations." Telemark and Larvik registered the strongest gains. It took on average 41 days to sell a home in Norway last year, with homes selling most quickly in Trondheim (24 days) and slowest in Tromsø (69 days).
(Written January 5, 2010)
Currency gains more strength
It only took about NOK 8.25 to buy a euro early this week, as Norway's krone rose to its strongest level since September 2008. Nordea Markets predicts the krone will trade for just NOK 8.10 against the euro by the end of the year. Several economists polled by financial news service e24.no think the krone will get even stronger, with only NOK 8 buying a euro by 2011. The krone also strengthened against the dollar, which could be bought on Monday for NOK 5.73. Norway's strong economy and rising interest rates make the currency attractive, but its strength is bad news for Norwegian exports and companies doing business in foreign currencies like US dollars.
(Written January 5, 2010)
It only took about NOK 8.25 to buy a euro early this week, as Norway's krone rose to its strongest level since September 2008. Nordea Markets predicts the krone will trade for just NOK 8.10 against the euro by the end of the year. Several economists polled by financial news service e24.no think the krone will get even stronger, with only NOK 8 buying a euro by 2011. The krone also strengthened against the dollar, which could be bought on Monday for NOK 5.73. Norway's strong economy and rising interest rates make the currency attractive, but its strength is bad news for Norwegian exports and companies doing business in foreign currencies like US dollars.
(Written January 5, 2010)
Cold temps won't raise electricity rates
Even though Norway is caught in the grips of an extended cold spell, analysts don't think increased demand for heat and light will lead to any electricity shortages or higher rates. They say there's enough water in reservoirs to produce the hydroelectric power that's needed, and industrial demand is lower because of the finance crisis. Rates are currently lower than they were last year at this time, at between 30-33 øre per kilowatt hour not including taxes and network costs. Analysts predict electricity prices will remain stable throughout the winter. The cold weather is boosting consumption but it won't set any records, says Tor Inge Akselsen of Statnett, which operates, builds and owns Norway's electrical distribution system. Industrial production, he said, is lower than normal because of lower demand. "Without the finance crisis, I think there would have been a consumption record," he told newspaper Aftenposten.
(Written January 4, 2010)
Even though Norway is caught in the grips of an extended cold spell, analysts don't think increased demand for heat and light will lead to any electricity shortages or higher rates. They say there's enough water in reservoirs to produce the hydroelectric power that's needed, and industrial demand is lower because of the finance crisis. Rates are currently lower than they were last year at this time, at between 30-33 øre per kilowatt hour not including taxes and network costs. Analysts predict electricity prices will remain stable throughout the winter. The cold weather is boosting consumption but it won't set any records, says Tor Inge Akselsen of Statnett, which operates, builds and owns Norway's electrical distribution system. Industrial production, he said, is lower than normal because of lower demand. "Without the finance crisis, I think there would have been a consumption record," he told newspaper Aftenposten.
(Written January 4, 2010)
Other countries follow Norway's boardroom quotas
It's been two years since a new Norwegian law demanded companies to have at least 40 percent of their board seats filled by women. The quota system, which is generally seen as having worked well and almost become a non-issue in Norway, continues to spark interest from other countries, which have sent a string of delegations to Norway to see how the quota system works. Spain, France and the Netherlands are among those actively trying to follow Norway's lead for more sexual equality in the boardroom. France sent nine top politicians to Norway last spring, to talk to female board members, employers organization NHO, companies, Norwegian politicians and the man behind the measure, former cabinet minister Ansgar Gabrielsen of the Conservative Party. Gabrielsen, now a private business consultant, tried to start charging for interviews because they were taking up so much time. In Norway, women now make up 43 percent of the membership of boards of directors, compared to 15 percent in the US, 12 percent in Great Britain, and only 8 percent in Spain.
(Written January 4, 2010)
It's been two years since a new Norwegian law demanded companies to have at least 40 percent of their board seats filled by women. The quota system, which is generally seen as having worked well and almost become a non-issue in Norway, continues to spark interest from other countries, which have sent a string of delegations to Norway to see how the quota system works. Spain, France and the Netherlands are among those actively trying to follow Norway's lead for more sexual equality in the boardroom. France sent nine top politicians to Norway last spring, to talk to female board members, employers organization NHO, companies, Norwegian politicians and the man behind the measure, former cabinet minister Ansgar Gabrielsen of the Conservative Party. Gabrielsen, now a private business consultant, tried to start charging for interviews because they were taking up so much time. In Norway, women now make up 43 percent of the membership of boards of directors, compared to 15 percent in the US, 12 percent in Great Britain, and only 8 percent in Spain.
(Written January 4, 2010)
Christmas tree lots like this one in Oslo's Skillebekk district (photo) started popping up in mid-December, but now it's reported that tens of thousands of Norwegian trees were sold overseas as well. Hardly any trees were exported from Norway until just a few years ago, but now, with increasing numbers of farmers raising trees systematically, exports have exploded. Newspaper Aftenposten reported that around 140,000 Christmas trees were sent out of Norway this year, up from just 2,500 in 2006 and 57,000 last year. "We're not roaming around the forests anymore, looking for trees that could sell," farmer Yrjan Fevang told Aftenposten. "We're running plantation-like operations on cultivated land." Fevang also raises grain, but has diversified into Christmas trees. The more professional production also led to a sharp decline in imported trees to Norway. Imports from tree-growers in Denmark, for example, have fallen from 435,000 in 2003 to 262,000 this year. Some growers have replaced traditional food crops with Christmas trees. Arnt Stensholt, for example, grew grain and potatoes at Eidsfoss in Vestfold for years but says trees are more profitable. "It may not be politically correct, that there's more money in trees than food," he told Aftenposten. "But that's what's happened, and I don't have a bad conscience about it."
(Written December 28, 2009)
New boss at forest products firm Norske Skog
The forestry firm that ranks as one of Norway's major companies, Norske Skog, has chosen a new chief executive from the former top ranks at fertilizer producer Yara. Sven Ombudstvedt, age 43, was finance director for Yara but overlooked for the top job when Yara, once part of Norsk Hydro, needed its own new boss in 2008. He quit immediately and tried to launch his own fertilizer venture but ran into problems not least stemming from the global finance crisis. In late November he was contacted about the top job at Norske Skog and told newspaper Dagens Næringsliv that he's accustomed to challenging positions. "I'll need some time to get oriented with the paper industry, but we know it's possible to succeed with mature industries," he said. Norske Skog's board and former CEO Jan Reinås were glad Ombudstvedt took the job, calling him "market-oriented and with operational experience." Ombudstvedt, who graduated from Pacific Lutheran University in Washington state and has a masters in international management from the Thunderbird school in Arizona, succeeds Christian Rynning-Tønnesen, who is leaving Norske Skog to take over at Statkraft.
(Written December 28, 2009)
The forestry firm that ranks as one of Norway's major companies, Norske Skog, has chosen a new chief executive from the former top ranks at fertilizer producer Yara. Sven Ombudstvedt, age 43, was finance director for Yara but overlooked for the top job when Yara, once part of Norsk Hydro, needed its own new boss in 2008. He quit immediately and tried to launch his own fertilizer venture but ran into problems not least stemming from the global finance crisis. In late November he was contacted about the top job at Norske Skog and told newspaper Dagens Næringsliv that he's accustomed to challenging positions. "I'll need some time to get oriented with the paper industry, but we know it's possible to succeed with mature industries," he said. Norske Skog's board and former CEO Jan Reinås were glad Ombudstvedt took the job, calling him "market-oriented and with operational experience." Ombudstvedt, who graduated from Pacific Lutheran University in Washington state and has a masters in international management from the Thunderbird school in Arizona, succeeds Christian Rynning-Tønnesen, who is leaving Norske Skog to take over at Statkraft.
(Written December 28, 2009)
Companies cut costs by dropping julebord
Lavish company Christmas parties known as julebord have been a Norwegian tradition for years, but many fell victim to the finance crisis this season. As predicted earlier, companies all over the country decided to cut costs by cutting out the julebord, with final figures showing that around 10,000 fewer companies hosted parties for their employees. That means around 200,000 fewer workers were invited to a julebord this year, down 15 percent from last year, according to figures from national employers' organization NHO. The employees themselves seemed to understand, noting they wouldn't have felt comfortable partying after colleagues had been laid off. Business news service E24 reported that the hotel and restaurant branch, however, was hurt by the decisions to cancel julebord, suffering what NHO spokesman Petter Brubakk called a "considerable income decline in a month (December) that normally stands for a major portion of their revenue and profit."
(Written December 28, 2009)
Lavish company Christmas parties known as julebord have been a Norwegian tradition for years, but many fell victim to the finance crisis this season. As predicted earlier, companies all over the country decided to cut costs by cutting out the julebord, with final figures showing that around 10,000 fewer companies hosted parties for their employees. That means around 200,000 fewer workers were invited to a julebord this year, down 15 percent from last year, according to figures from national employers' organization NHO. The employees themselves seemed to understand, noting they wouldn't have felt comfortable partying after colleagues had been laid off. Business news service E24 reported that the hotel and restaurant branch, however, was hurt by the decisions to cancel julebord, suffering what NHO spokesman Petter Brubakk called a "considerable income decline in a month (December) that normally stands for a major portion of their revenue and profit."
(Written December 28, 2009)
SAAB workers cling to new hopes, but GM 'too greedy'
A Norwegian entrepreneur who was among those trying and failing to take over Swedish carmaker SAAB claims SAAB's owner, General Motors (GM), simply got "too greedy." Bård Eker, who's built up his own fortune through car design in Fredrikstad, told newspaper Aftenposten over the weekend that GM "made it very difficult" to buy SAAB. It was never structured as a subsidiary of GM, Eker said, and had been "swallowed up by the huge GM body." GM executives, claims Eker, "hadn't done the necessary surgery before they entered into talks with potential buyers." He added that "our mistake was that we were too open with our business plan. When they began to have faith in us, the boys got too greedy. They wanted more money for the parts. Then the greed became so dominant that we couldn't take it anymore." GM announced Friday that it was shutting SAAB down, but would-be Dutch-Russian buyer Spyker re-emerged with a new offer on Sunday. GM promised to evaluate it. Nearly 4,000 SAAB workers in Trollhättan, Sweden stand to lose their jobs if SAAB is shut down, along with thousands others working in companies that are SAAB suppliers.
(Written December 21, 2009)
A Norwegian entrepreneur who was among those trying and failing to take over Swedish carmaker SAAB claims SAAB's owner, General Motors (GM), simply got "too greedy." Bård Eker, who's built up his own fortune through car design in Fredrikstad, told newspaper Aftenposten over the weekend that GM "made it very difficult" to buy SAAB. It was never structured as a subsidiary of GM, Eker said, and had been "swallowed up by the huge GM body." GM executives, claims Eker, "hadn't done the necessary surgery before they entered into talks with potential buyers." He added that "our mistake was that we were too open with our business plan. When they began to have faith in us, the boys got too greedy. They wanted more money for the parts. Then the greed became so dominant that we couldn't take it anymore." GM announced Friday that it was shutting SAAB down, but would-be Dutch-Russian buyer Spyker re-emerged with a new offer on Sunday. GM promised to evaluate it. Nearly 4,000 SAAB workers in Trollhättan, Sweden stand to lose their jobs if SAAB is shut down, along with thousands others working in companies that are SAAB suppliers.
(Written December 21, 2009)
Investors optimistic for markets in 2010
Some Norwegian investors think 2009 will wind up as the best stock market year since 1983, reports newspaper Dagens Næringsliv (DN), and that the upturn will continue into next year. Results so far indicate that the main index of the Oslo Stock Exchange has seen an increase unmatched for 16 years. After starting the year well below 100, it was standing at 135.6 at closing on Friday. Niklas Hallberg, funds manager for KLP, said the swings have been enormous and gave credit for the resurgence to international, coordinated stimulus programs. The Oslo Stock Exchange is up more than 61 percent so far this year, with several more trading days remaining. Portfolio manager for Storebrand Kapitalforvaltning, Hans Thrane Nielsen, told DN that he's recommending an "overweight" of shares because share prices are still "cheap" after being "very cheap" earlier in the year.
(Written December 21, 2009)
Some Norwegian investors think 2009 will wind up as the best stock market year since 1983, reports newspaper Dagens Næringsliv (DN), and that the upturn will continue into next year. Results so far indicate that the main index of the Oslo Stock Exchange has seen an increase unmatched for 16 years. After starting the year well below 100, it was standing at 135.6 at closing on Friday. Niklas Hallberg, funds manager for KLP, said the swings have been enormous and gave credit for the resurgence to international, coordinated stimulus programs. The Oslo Stock Exchange is up more than 61 percent so far this year, with several more trading days remaining. Portfolio manager for Storebrand Kapitalforvaltning, Hans Thrane Nielsen, told DN that he's recommending an "overweight" of shares because share prices are still "cheap" after being "very cheap" earlier in the year.
(Written December 21, 2009)
Unemployment rates holds steady
Norway's unemployment rate remains at 2.7 percent, according to state welfare agency Nav. In December, around 69,900 Norwegians were unemployed, compared to 69,700 in November. An additional 20,800 persons were taking part in various work training programs. The amount of long-term unemployed, however increased in December. "We see that many unemployed, especially men, have to take more time to get back into the workforce," Tor Saglie of Nav told news bureau NTB.
(Written December 18, 2009)
Norway's unemployment rate remains at 2.7 percent, according to state welfare agency Nav. In December, around 69,900 Norwegians were unemployed, compared to 69,700 in November. An additional 20,800 persons were taking part in various work training programs. The amount of long-term unemployed, however increased in December. "We see that many unemployed, especially men, have to take more time to get back into the workforce," Tor Saglie of Nav told news bureau NTB.
(Written December 18, 2009)
Sick leave statistics explode
Both public and private sector employers have been suffering from record-high sick-leave rates in recent months. The figures jumped considerably during the third quarter, to a level never before seen in Norway. More than 7 percent of the nation's workforce was off the job, on average. The increase was biggest among men working in businesses hardest hit by the global finance crisis, including the construction industry. The sick leave figures were much higher than government officials predicted, and they're trying to determine the root of the problem. Some of it was attributed to outbreaks of swine flu in recent months. State outlays that fund the sick leave, covered in part by fees paid by employes, were up dramatically and likely will hit NOK 37 billion for the year. Debate has been raging over how to tackle sick leave costs this autumn. Women account for much of the sick leave, leading to calls for employers to better address the needs of employees and provide a more flexible workplace. The highest levels of sick leave were found in Evenes in Nordland County (16.9 percent) and the lowest in Åseral township in Vest-Agder County (2.6 percent).
(Written December 18, 2009)
Both public and private sector employers have been suffering from record-high sick-leave rates in recent months. The figures jumped considerably during the third quarter, to a level never before seen in Norway. More than 7 percent of the nation's workforce was off the job, on average. The increase was biggest among men working in businesses hardest hit by the global finance crisis, including the construction industry. The sick leave figures were much higher than government officials predicted, and they're trying to determine the root of the problem. Some of it was attributed to outbreaks of swine flu in recent months. State outlays that fund the sick leave, covered in part by fees paid by employes, were up dramatically and likely will hit NOK 37 billion for the year. Debate has been raging over how to tackle sick leave costs this autumn. Women account for much of the sick leave, leading to calls for employers to better address the needs of employees and provide a more flexible workplace. The highest levels of sick leave were found in Evenes in Nordland County (16.9 percent) and the lowest in Åseral township in Vest-Agder County (2.6 percent).
(Written December 18, 2009)
Statoil restarts troubled Melkøya plant
One of Norway's largest and most prestigious industrial plants, the Melkøya facility that processes gas from the offshore Snøhvit field, started up production again this week after another lengthy shutdown. The plant has bordered on a nightmare for Statoil, mostly because its cooling system lacks adequate capacity, writes business news service e24.no. The facility, built on an island outside the northern city of Hammerfest, was supposed to be generating NOK 1 billion a month in gas revenues, but has had to live with well under that until its capacity problems are solved.
(Written December 18, 2009)
One of Norway's largest and most prestigious industrial plants, the Melkøya facility that processes gas from the offshore Snøhvit field, started up production again this week after another lengthy shutdown. The plant has bordered on a nightmare for Statoil, mostly because its cooling system lacks adequate capacity, writes business news service e24.no. The facility, built on an island outside the northern city of Hammerfest, was supposed to be generating NOK 1 billion a month in gas revenues, but has had to live with well under that until its capacity problems are solved.
(Written December 18, 2009)
University of Oslo hopes for more philanthropy in Norway
American universities have solicited donations from alumni and private donors for years, but there's been little such activity in Norway, where universities expect the state to cover all costs. Shrinking budgets, however, and a few donations from wealthy entrepreneurs are inspiring the University of Oslo to set up a new position aimed at tapping into "rich uncles," reports newspaper Dagens Næringsliv. Some professors are raising their eyebrows, arguing that there's no tradition of philanthropy in Norway. There has been some, with businessman Trond Mohn donating millions to research foundations in Bergen and retailer Stein Erik Hagen donating towards medical research in Oslo. Generous gifts to good causes, however, have always been viewed with skepticism in the social democratic state, where public coffers are "supposed" to pay the bill for higher education. Donors in Norway also can't expect to write their donations off their tax bills.
(Written December 15, 2009)
American universities have solicited donations from alumni and private donors for years, but there's been little such activity in Norway, where universities expect the state to cover all costs. Shrinking budgets, however, and a few donations from wealthy entrepreneurs are inspiring the University of Oslo to set up a new position aimed at tapping into "rich uncles," reports newspaper Dagens Næringsliv. Some professors are raising their eyebrows, arguing that there's no tradition of philanthropy in Norway. There has been some, with businessman Trond Mohn donating millions to research foundations in Bergen and retailer Stein Erik Hagen donating towards medical research in Oslo. Generous gifts to good causes, however, have always been viewed with skepticism in the social democratic state, where public coffers are "supposed" to pay the bill for higher education. Donors in Norway also can't expect to write their donations off their tax bills.
(Written December 15, 2009)
Business leaders don't want whole climate bill
Some of Norway’s top business leaders fear that European companies are going to get stuck with the bill for measures to halt climate change. “We’re not against paying for carbon emissions,” said Idar Kreutzer of insurance firm Storebrand. “But we are extremely worried that only some, and not all, will be asked to pay.” They fear businesses in China, India and the US won’t have to pay as much as European businesses, because they’re working off a smaller fee and tax base. Most European companies already are paying the price of carbon emissions, through carbon taxes, which don’t exist elsewhere. If the tab goes up even more in Europe, it would leave European business and customers paying a disproportionate share. The CEO of Norsk Hydro doesn’t think companies outside Europe will face the same tax and fee demands until 2020.
(Written December 14, 2009)
Some of Norway’s top business leaders fear that European companies are going to get stuck with the bill for measures to halt climate change. “We’re not against paying for carbon emissions,” said Idar Kreutzer of insurance firm Storebrand. “But we are extremely worried that only some, and not all, will be asked to pay.” They fear businesses in China, India and the US won’t have to pay as much as European businesses, because they’re working off a smaller fee and tax base. Most European companies already are paying the price of carbon emissions, through carbon taxes, which don’t exist elsewhere. If the tab goes up even more in Europe, it would leave European business and customers paying a disproportionate share. The CEO of Norsk Hydro doesn’t think companies outside Europe will face the same tax and fee demands until 2020.
(Written December 14, 2009)
Statoil wins stake in Iraqi oil field
Disappointment on Friday turned to jubilation on Saturday when Norwegian state oil company Statoil won a 15 percent stake in the West Qurna 2 oil field in southern Iraq. It's believed to hold nearly 13 billion barrels of oil that will be recovered along with senior partner Lukoil of Russia. That's more than all the untapped Norwegian reserves put together and both Lukoil and Statoil secured a profit of USD 1.15 per barrel. Production is expected to come on line by 2013, with the field producing an expected 1.8 million barrels a day by 2018. Just the day before, Statoil lost a bid round on another large oil field in Iraq, Halfaya, so the West Qurna 2 stake secures Statoil a foothold in the country that some analysts think may produce more oil than Saudi Arabia within 10 years. "The security aspect is still the biggest challenge regarding doing business in Iraq, but the prospects are much better now than they were just a couple years ago," analyst Trond Omdal of Arctic Securities told newspaper Aftenposten. "It's very positive for Statoil that the company now has the chance to get quite heavily involved in Iraq." Professor Daniel Heradstveit told Aftenposten that there's "probably wide agreement within Iraq" to use international oil companies to secure themselves the money and technology to develop the country's oil industry.
(Written December 13, 2009)
Disappointment on Friday turned to jubilation on Saturday when Norwegian state oil company Statoil won a 15 percent stake in the West Qurna 2 oil field in southern Iraq. It's believed to hold nearly 13 billion barrels of oil that will be recovered along with senior partner Lukoil of Russia. That's more than all the untapped Norwegian reserves put together and both Lukoil and Statoil secured a profit of USD 1.15 per barrel. Production is expected to come on line by 2013, with the field producing an expected 1.8 million barrels a day by 2018. Just the day before, Statoil lost a bid round on another large oil field in Iraq, Halfaya, so the West Qurna 2 stake secures Statoil a foothold in the country that some analysts think may produce more oil than Saudi Arabia within 10 years. "The security aspect is still the biggest challenge regarding doing business in Iraq, but the prospects are much better now than they were just a couple years ago," analyst Trond Omdal of Arctic Securities told newspaper Aftenposten. "It's very positive for Statoil that the company now has the chance to get quite heavily involved in Iraq." Professor Daniel Heradstveit told Aftenposten that there's "probably wide agreement within Iraq" to use international oil companies to secure themselves the money and technology to develop the country's oil industry.
(Written December 13, 2009)
Chu 'impressed' by Norway's energy and carbon recapture plans
US Secretary of Energy Steven Chu has been in Norway for the past few days in connection with US President Barack Obama's acceptance of the Nobel Peace Prize, and Norwegian officials were happy to show him around. Chu met with his counterpart, Oil and Energy Minister Terje Riis-Johansen, along with several other cabinet ministers and on Saturday, Riis-Johansen took Chu on a trip to western Norway to show him hydroelectric power plants and the carbon recapture technology project now underway at Statoil's refinery at Mongstad. Chu, a Nobel Laureate himself (he won the Nobel Prize for Physics in 1997), said he hoped and believed that carbon recapture and storage will be a key way for the world to control its carbon emissions. Norwegian Prime Minister Jens Stoltenberg has called the Mongstad project Norway's equivalent of a "moon-landing," but Chu shied away from such characterizations, telling newspaper Aftenposten that he's "just a scientist." The sheer costs of carbon recapture continue to be a major challenge, Chu noted. The Mongstad project, for example, is the most expensive project ever undertaken in Norway, costing around NOK 5.5 billion. Riis-Johansen was nevertheless delighted to have Chu as his guest and keen to show off Norway's projects, which Chu called "ambitious." Chu flew on to Copenhagen on Sunday, to take part in the UN's climate conference.
(Written December 13, 2009)
FLANKED BY NORWEGIAN MINISTERS: From left, Tora Aasland (higher education); Erik Solheim (environment); Chu; Terje Riis-Johansen (oil and energy) and Trond Giske (business and trade). PHOTO: regjeringen.no
(Written December 13, 2009)
Hotel vacancy rates climb, profits sink
Hotels in Oslo were full of guests last week, when US President Barack Obama was in town to collect his Nobel Peace Prize, but that hasn't been the case otherwise this autumn. Figures released last week by state statistics bureau SSB showed average occupancy rates nationwide of just over 50 percent, while room prices fell an average of 4.6 percent, from NOK 897 (USD 160) to NOK 856 per night. Hotel analysts link the occupancy rate and room price decline to the opening of several new hotels this year, not least in Oslo. The course and conference market also is suffering during the global finance crisis, down 10 percent according to SSB, while business travel was down 3 percent. Leisure travel increased, by as much as 17 percent in October, but it doesn't pay as well as business and conference travel. Per-Erik Winther of Horwath Consulting also told newspaper Dagens Næringsliv that hotel capacity expanded in outlying areas as well, with the opening of the Radisson Blu in Trysil and spa hotels in Buskerud, Vestfold and Nord-Trøndelag pushing occupancy rates down.
(Written December 13, 2009)
Hotels in Oslo were full of guests last week, when US President Barack Obama was in town to collect his Nobel Peace Prize, but that hasn't been the case otherwise this autumn. Figures released last week by state statistics bureau SSB showed average occupancy rates nationwide of just over 50 percent, while room prices fell an average of 4.6 percent, from NOK 897 (USD 160) to NOK 856 per night. Hotel analysts link the occupancy rate and room price decline to the opening of several new hotels this year, not least in Oslo. The course and conference market also is suffering during the global finance crisis, down 10 percent according to SSB, while business travel was down 3 percent. Leisure travel increased, by as much as 17 percent in October, but it doesn't pay as well as business and conference travel. Per-Erik Winther of Horwath Consulting also told newspaper Dagens Næringsliv that hotel capacity expanded in outlying areas as well, with the opening of the Radisson Blu in Trysil and spa hotels in Buskerud, Vestfold and Nord-Trøndelag pushing occupancy rates down.
(Written December 13, 2009)
Telenor aims to ring up profits in India
Norwegian telecoms firm Telenor is investing heavily in India, aiming to grab 8 percent of the huge market and profit despite intense competition and low rates. Telenor launched mobile phone services through its Indian subsidiary Unitech Wireless in seven of India's 22 telecommunications regions on Thursday under the brand "Uninor." Around 600 million people live in the regions where Uninor now will operate. By next summer it will be operable in all 22 regions, company officials claim. Telenor is investing around NOK 18 billion (nearly USD 3 billion) in the venture and Telenor CEO Jon Fredrik Baksaas was on hand for the launch, confident that potential market growth will allow Telenor to make money in the highly competitive market. India now has around half-a-billion mobile phone subscribers, with as many as 15 million buying subscriptions every month.
(Written December 4, 2009)
Norwegian telecoms firm Telenor is investing heavily in India, aiming to grab 8 percent of the huge market and profit despite intense competition and low rates. Telenor launched mobile phone services through its Indian subsidiary Unitech Wireless in seven of India's 22 telecommunications regions on Thursday under the brand "Uninor." Around 600 million people live in the regions where Uninor now will operate. By next summer it will be operable in all 22 regions, company officials claim. Telenor is investing around NOK 18 billion (nearly USD 3 billion) in the venture and Telenor CEO Jon Fredrik Baksaas was on hand for the launch, confident that potential market growth will allow Telenor to make money in the highly competitive market. India now has around half-a-billion mobile phone subscribers, with as many as 15 million buying subscriptions every month.
(Written December 4, 2009)
Oil investments expected to decline sharply next year
Oil companies operating in Norway are expected to invest around NOK 118 billion in the Norwegian market next year, down from NOK 129 billion this year, reports trade association OLF. State statistics bureau SSB predicts an even bigger decline, based on figures supplied by the companies themselves, and it's all sending more shivers through Norway's offshore yards that depend on business from the oil firms to stay afloat. Industry officials, including those in banking and several analysts, think the OLF figures are more realistic, reports newspaper Dagens Næringsliv (DN), but they still suggest harder times ahead. Norwegian industry is in decline in other branches as well, and the oil industry is pushing hard to be allowed to launch exploration activities off scenic Lofoten and Vesterålen in northern Norway, to help offset the decline. The government will take up the issue late next year.
(Written December 4, 2009)
Oil companies operating in Norway are expected to invest around NOK 118 billion in the Norwegian market next year, down from NOK 129 billion this year, reports trade association OLF. State statistics bureau SSB predicts an even bigger decline, based on figures supplied by the companies themselves, and it's all sending more shivers through Norway's offshore yards that depend on business from the oil firms to stay afloat. Industry officials, including those in banking and several analysts, think the OLF figures are more realistic, reports newspaper Dagens Næringsliv (DN), but they still suggest harder times ahead. Norwegian industry is in decline in other branches as well, and the oil industry is pushing hard to be allowed to launch exploration activities off scenic Lofoten and Vesterålen in northern Norway, to help offset the decline. The government will take up the issue late next year.
(Written December 4, 2009)
Dubai downturn hits Norwegian-Pakistani community
Several hundred members of the Norwegian-Pakistani community are threatened with losses from the real estate crack in Dubai. Many had made investments in Dubai projects, including condominiums that are seeing steep price declines. The Saddiq family, which runs Star Autoco AS, is among them and Zahid Saddiq told newspaper Aftenposten that the value of a condo they'd bought "is probably about half" what it has been. He remains confident, though, that the market in Dubai will recover. "Dubai is here to stay, this will turn around," he said. Trond Vindfallet has sold condos in Dubai for the past four years and offered investment advice, with many of his clients being Norwegian-Pakistanis. He thinks this can be a good time to buy, with prices down to levels last seen in 2004. He maintains that other states in the United Arab Emirates can't afford to let Dubai crash. "The market will go up again," he told Aftenposten.
(Written December 4, 2009)
Several hundred members of the Norwegian-Pakistani community are threatened with losses from the real estate crack in Dubai. Many had made investments in Dubai projects, including condominiums that are seeing steep price declines. The Saddiq family, which runs Star Autoco AS, is among them and Zahid Saddiq told newspaper Aftenposten that the value of a condo they'd bought "is probably about half" what it has been. He remains confident, though, that the market in Dubai will recover. "Dubai is here to stay, this will turn around," he said. Trond Vindfallet has sold condos in Dubai for the past four years and offered investment advice, with many of his clients being Norwegian-Pakistanis. He thinks this can be a good time to buy, with prices down to levels last seen in 2004. He maintains that other states in the United Arab Emirates can't afford to let Dubai crash. "The market will go up again," he told Aftenposten.
(Written December 4, 2009)
Oslo Stock Exchange cuts staffing
As Norway's economic downturn continues, even the Oslo Stock Exchange is trimming staff. Between 15 and 20 employees already have accepted severance packages and the stock exchange plans a new round of cuts next year to reduce staffing costs. The stock exchange consists of four units with a total of 297 employees at the beginning of the year. Its VPS unit has seen large revenue declines, and stock exchange boss Bente Landsnes wants to cut operating costs by NOK 50 million by the end of next year. The severance packages offered employees a maximum of 15 months' pay, and up to 20 are expected to accept.
(Written December 3, 2009)
As Norway's economic downturn continues, even the Oslo Stock Exchange is trimming staff. Between 15 and 20 employees already have accepted severance packages and the stock exchange plans a new round of cuts next year to reduce staffing costs. The stock exchange consists of four units with a total of 297 employees at the beginning of the year. Its VPS unit has seen large revenue declines, and stock exchange boss Bente Landsnes wants to cut operating costs by NOK 50 million by the end of next year. The severance packages offered employees a maximum of 15 months' pay, and up to 20 are expected to accept.
(Written December 3, 2009)
SAS to lay off more pilots
Financially troubled Scandinavian Airlines (SAS) plans to lay off around 100 of the company's 1,800 pilots in Norway, Denmark and Sweden, reports Bloomberg News. SAS still must deal with a vast array of employees' labour unions, and is severely challenged by cut-rate carriers that don't. Now SAS claims that negotiations with unions representing its pilots haven't resulted in needed cost cuts, making layoffs necessary. SAS said it will lay off its youngest pilots, a move that the leader of the Danish pilots called "a catastrophically bad decision."
(See related story below.)
(Written December 1, 2009)
Financially troubled Scandinavian Airlines (SAS) plans to lay off around 100 of the company's 1,800 pilots in Norway, Denmark and Sweden, reports Bloomberg News. SAS still must deal with a vast array of employees' labour unions, and is severely challenged by cut-rate carriers that don't. Now SAS claims that negotiations with unions representing its pilots haven't resulted in needed cost cuts, making layoffs necessary. SAS said it will lay off its youngest pilots, a move that the leader of the Danish pilots called "a catastrophically bad decision."
(See related story below.)
(Written December 1, 2009)
High grocery store prices attract more regulatory attention
Even though the price of grain and many other raw ingredients has fallen, prices at grocery stores all over Europe and especially in Norway have jumped. That's caught the attention of EU officials, competition authorities and consumer advocates, who now signal new probes into how the large chains controlling the grocery stores set their prices. In Norway, where several of the country's richest families have made their fortunes selling allegedly discounted groceries, the power of the chains is highly concentrated, with just four controlling as much as 99 percent of food retailing in the country. That may explain why a dozen eggs now costs around NOK 50 (almost USD 9) and a small head of lettuce nearly USD 5. With prices in Oslo nearly double those in neighbouring Sweden, regulators are crying foul and Agriculture Minister Lars Peder Brekk thinks farmers are getting too much of the blame. EU Commissioner Fischer Boel says EU officials will examine how the grocery store chains operate, suspecting collusion, and is calling for tighter cooperation among the various national competition authorities and consumer advocates. Gro Tvedt Andersson of the Norwegian consumer council (Forbrukerrådet) says she thinks food producers are more concerned with winning the chains' favour than consumers' and claims the chains need to take their customers more seriously. "Today, they lack consumer confidence," Tvedt Andersson told newspaper Dagens Næringsliv. The grocery bosses, meanwhile, blame lack of competition among major suppliers, with the new head of Coop in Norway telling Aftenposten that he thinks there's plenty of competition among the grocery chains themselves. Ole Robert Reitan of the Rema 1000 chain cited "expensive agriculture in Norway, and high tariffs on imports."
(See an earlier story and a commentary on high prices and poor selection in Norway.)
(Written November 30, updated December 1, 2009)
Even though the price of grain and many other raw ingredients has fallen, prices at grocery stores all over Europe and especially in Norway have jumped. That's caught the attention of EU officials, competition authorities and consumer advocates, who now signal new probes into how the large chains controlling the grocery stores set their prices. In Norway, where several of the country's richest families have made their fortunes selling allegedly discounted groceries, the power of the chains is highly concentrated, with just four controlling as much as 99 percent of food retailing in the country. That may explain why a dozen eggs now costs around NOK 50 (almost USD 9) and a small head of lettuce nearly USD 5. With prices in Oslo nearly double those in neighbouring Sweden, regulators are crying foul and Agriculture Minister Lars Peder Brekk thinks farmers are getting too much of the blame. EU Commissioner Fischer Boel says EU officials will examine how the grocery store chains operate, suspecting collusion, and is calling for tighter cooperation among the various national competition authorities and consumer advocates. Gro Tvedt Andersson of the Norwegian consumer council (Forbrukerrådet) says she thinks food producers are more concerned with winning the chains' favour than consumers' and claims the chains need to take their customers more seriously. "Today, they lack consumer confidence," Tvedt Andersson told newspaper Dagens Næringsliv. The grocery bosses, meanwhile, blame lack of competition among major suppliers, with the new head of Coop in Norway telling Aftenposten that he thinks there's plenty of competition among the grocery chains themselves. Ole Robert Reitan of the Rema 1000 chain cited "expensive agriculture in Norway, and high tariffs on imports."
(See an earlier story and a commentary on high prices and poor selection in Norway.)
(Written November 30, updated December 1, 2009)
