StormGeo acquires a majority stake in Climatempo; Carlos Magno do Nascimento and Kieran Nash shaking hands after closing the important deal on February 14, 2019.
StormGeo has acquired 51 percent of the Brazilian Climatempo and now consolidates its position as the most important climate weather intelligence firm in Latin America.
StormGeo is already the largest provider of offshore weather forecasts in Brazil, helping clients manage weather risks and reducing downtime. On the StormGeo client list, you find companies like Petrobras, Shell, Equinor, SBM, Modec, Total, Seadrill, Subsea 7, PGS, Technip, Queiroz Galvao, Ocyan, CBO, SolstadFarstad, DOF and many others.
«This is very exciting, and as a small Norwegian company, we are very proud. We have actually been talking to Climatempo for a while, partnering successfully, and learning about each other on various projects through the recent tough years. It is a great marriage for both companies, and we join forces with the best possible partner in Brazil», says StormGeo´s Brazil Managing Director, Kieran Nash.
The contract was signed on Valentine´s Day, February 14, 2019, a perfect day to complete the marriage after years of courting.
«We add value to them, and this partnership will also revolutionize our work», Mr. Nash says. Now, StormGeo and Climatempo aim to improve weather services in Brazil even further, by combining conventional methods with the use of weather radars and satellites. Predicting the typical, heavy summer rainfalls more precisely, is something they would like to do in the near future.
Strong brand
While offshore is StormGeo´s strength in Brazil, Climatempo is strong in forecasts custom-made for sectors like agriculture, hydropower, renewables and insurance. But Climatempo is also a pioneer in private meteorological services in Brazil, with 1.6 million followers across its social networks, and its online platform gained more than 60 million unique users in 2018, a 46 percent growth from 2017.
StormGeo already has a global presence, with 26 offices in 20 countries. The Norwegian company has been present in Brazil since 2011, and today, Brazil director Kieran Nash thanks the customers who stayed loyal throughout some tough years. Queiroz Galvao, PGS and Ocyan were the first customers in 2012 followed by Technip, Subsea 7 and others. In 2016, Climatempo and StormGeo landed an important contract with Petrobras. Total and many others have followed since then. In 2019, StormGeo signed a 3-year contract with Shell Brasil.
Research unit
The StormGeo team of 3 people will now join forces with the Climatempo team of 118. Climatempo is based in São Paulo, with a research unit in São Jose dos Campos. Together they want to expand in Latin-America, to countries like Colombia, Argentina and Chile.
StormGeo and Climatempo have actually been collaborating on a research project on ocean current models, with funding from Finep and the Norwegian Research Council.
According to Climatempo founder and president, Carlos Magno, the partnership represents a gain in technology for his company:
«The partnership with StormGeo positions us as a strong, global competitor in meteorology. Together with StormGeo, we are now ready to take a big leap forward», he said in a press release.
An integration plan has been approved, and the senior team of StormGeo in Norway is expected to visit Brazil shortly. StormGeo CEO Per-Olof Schroeder says Brazil offers superb growth opportunities in a variety of sectors.
«Partnering with Climatempo allows us to substantially augment our competitive position in Brazil and Latin America. As a case in point, we are particularly excited about Climatempo’s Agroclima PRO solution, offering customized decision support to farmers—a pioneering service in the Brazilian market», he said in a press release.
Widening the horizon
With the partnership, StormGeo also acquires 30 percent of TV Climatempo, the only Brazilian national weather channel with programming focused on climate forecasts and environmental sciences, socio-educational environmental content, tourism, agriculture and recreation.
Last year, StormGeo bought the maritime charts provider «Nautisk», enabling the company to supply maritime charts and publications in paper and digital format to the marine industry, covering major shipping routes and markets, including Europe, the US and Asia. Routing advice that results in fuel saving, is also among the services the company offers.
Already a market leader offshore, the new and stronger climate service provider is keen to see even more Norwegian companies among its clients and partners.
«This is a great Norwegian and Brazilian story. Pre-salt developments are advancing. In terms of weather-risk, the pre-salt is complicated region, where forecasts of currents, wind and waves will gain importance. Our customers will greatly reduce their exposure to weather-risk by using our services, for example accurately defining weather-windows based on operational limitations thereby optimizing operational efficiency, reducing down-time and limiting environmental impact.»
By Runa Hestmann, NBCC journalist
(runa.tierno@nbcc.com.br)
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