Several employees of Oslo-based Pareto Securities have had to leave the company in recent weeks, while bonuses paid out to Pareto partners are being cut. The reason, reports newspaper Dagens Næringsliv (DN), is the recent fall in oil prices.
Pareto has specialized in arranging capital and offering financial services to companies in the the oil and offshore sector. Pareto brokers have enjoyed years of high income when oil prices hit record high levels, with boss Ole Henrik Bjørge reporting taxable income of NOK 28 million in 2013 (around USD 4.5 million at the time).
Last year’s dive in the price of North Sea Brent crude has fueled uncertainty and prompted many of Pareto’s traditional customers to cut back. Low activity has in turn meant there’s less work for Pareto brokers and advisers in the firm’s corporate finance division, and DN reported that as many as 20 have left the company.
“We have … made some adjustments and done some reorganization because of a merger and lower activity in the oil and offshore sector,” finance director Atle Moen wrote in an email to DN. Pareto has offices in Los Angeles, Calgary and Perth and Moen told DN the company will now have around 420 employees.