2023 has turned out to be both an extremely successful and challenging year, marking several milestones for TCO.
We have broken new barriers in product deployment and managed to increase our revenue by a remarkable 130%, thanks to the entire TCO crew pulling together for our customers.
As we close the chapter on 2023, I find myself reflecting on the incredible journey TCO has undertaken. It has been a strong year for the industry, and indeed for TCO. I took the helm as CEO in mid-2022. The end of 2023 marks my first full year in the chair.
We kicked off the year with unprecedented activity, delivering record-breaking results by doubling our production from Q4 2022 to Q1 2023. And as we wrap up the year, I am proud to announce that we have tripled our production and delivery quantity of high technology well products from 2022 to 2023. This is a remarkable accomplishment considering we maintained nearly the same workforce.
Achieving this has been no mean feat, and our success is down to our employees on all levels working smarter and more efficiently to deliver on client orders. Upscaling production has made us more productive due to streamlined work processes. In addition, our entire staff have been super engaged in suggesting ways of constantly improving how we do things and going the extra mile to make this happen. We would not have succeeded without every employee’s active involvement.
Embracing innovative technology
At TCO we have spent many years developing and perfecting our Completion Barrier Plug segment, paving the way for operationalizing our increasingly advanced products.
Our DTHP (Disappearing Tubing Hanger Plug) technology marked a pivotal moment in 2023, with successful phase 1 installations on an eight-well campaign for a major Norwegian operator. While we encountered obstacles, the teamwork displayed in overcoming these hurdles and implementing procedural changes proved to be a resounding success. The operator has placed an order for the phase 2 well campaign in 2024 and TCO look forward to continued work.
There is always a balance between risks and benefits when embracing innovative technology, and we are dependent on operators who understand when the benefits outweigh any risks. We owe a debt of gratitude to the operator who clearly realized the benefits of our technology, paving the way for the overall success of the campaign.
In addition, I would like to highlight the superlative success of the TDP NonEx completion barrier plug, along with our tremendous growth in Tubing Conveyed Perforating services. TCP witnessed a staggering 300% increase on the Norwegian continental shelf from 2022 and we look forward to increased activity in 2024 with great contribution from our TCP team.
Global outlook on growth
Sales and marketing have diligently handled inquiries from around the globe, providing us with a solid foundation to stand on. However, the geopolitical landscape has posed challenges in terms of raw material access, supply chain disruptions, and price fluctuations. Our supply chain team has worked hard and successfully established strategic relationships with key suppliers and we’ve trialled new suppliers, some with success and some unsuccessful. We will continue this work in 2024.
We are currently recruiting broadly as a testament to our growth, and we intend to increase our workforce by 10-15% in 2024. This will be both in Norway and international locations as we look to expand our global footprint.
We fully understand the importance of the energy sector’s event circuit. As was the case throughout 2023, we look forward to meeting existing and potentially new customers across the globe in 2024. TCO will attend IPTC in Saudi Arabia in February, OTC and ATCE in May and September in the USA as well as ONS in August and ADIPEC in November – with further event attendances under consideration.
Looking Ahead to 2024
As we look toward 2024, our focus remains on consolidating our product portfolio and mirroring the achievements of the past year. We anticipate continued high activity levels, emphasizing the need to avoid growing pains and instead prepare for sustained growth in 2025 and 2026.
We will build on our recent success with our bypass plug products and continue to promote the DTHP and our Deep Set Bypass Plug (DSBP) in strength the coming year. But we also see an unfulfilled market segment for our API 19CI downhole Chemical injection Valves that needs to be filled. TCO is one of the industry leading suppliers within advanced downhole chemical injection systems and we are looking to partner with the major service companies to deliver the best-in-class system for the end user.
Our energy and unwavering commitment to our client service levels remain exceptionally high, and we plan to retain the current management team. They have had a steep learning curve since settling into their roles the past 18 months and are now a fine-tuned team.
We will strive to maintain our visibility in the Norwegian market and aim to increase our market share in the Middle East. Amier Mousa, our VP for the Middle East, will assume a more prominent role, concentrating on the Middle East as our primary market outside of Norway. We foresee growth in other countries within the region. Our ambition is also to expand our presence in the Gulf of Mexico.
Our Forus main office will experience some changes as we need more office space and will relocate to new office facilities within the Forus area. Here we will have an inhouse showroom and a social area to bring in our clients for good discussions on how we can improve their wells with our technology and competence.
In closing, let us not forget the personal aspect amidst our professional achievements. As we wrap up the year, I encourage each one of you to take a well-deserved holiday break, recharge, and spend quality time with your loved ones. I wish you all the very best for the upcoming holiday season and hope to talk to you and do business with you in 2024.