2010 saw DNV strengthen its position as a leader in helping companies worldwide to manage risks, despite a small decrease in both its total revenue and number of employees.
DNV today released its annual report highlighting its financial, environmental and social performance in 2010. The results are strong, but difficulties in the global economy and expected lower levels of new-building activity in shipping contributed to a 5% drop in operating revenue to MNOK 9,792, compared to MNOK 10,283 in 2009.
“The contracting shipping market interrupted several years of growth in revenue, but early cost-efficiency measures have ensured that DNV is well placed to reach its ambitious strategic goals,” says DNV CEO Henrik O. Madsen.
The operating profit decreased by MNOK 298 or 27%, from MNOK 1,108 in 2009 to MNOK 810 in 2010. This represents an operating margin of 8.3%. At the year-end 2010, the equity ratio was 71%, which shows that DNV has a strong financial basis. The number of employees decreased by 426 to 8,440, reflecting recruitment restrictions and local capacity adjustments.
Early maritime recovery?
The maritime industry witnessed an early recovery in 2010, and DNV managed to secure 302 new contracts, corresponding to 7 million gross tonnes (GT), which gives an estimated market share of 15.1% and 17.2% respectively in the ship classification market. The DNV-classed fleet grew from 5,725 ships and mobile offshore units (136.2 million GT) in 2009 to 5,923 ships and mobile offshore units (145.6 million GT) in 2010. A programme to secure the transfer of more vessels to DNV Class has produced results.
Verification, offshore classification, asset risk management, enterprise risk management and technology qualification services contributed to a growth of 5% for DNV’s energy sector services. The tragic Deepwater Horizon accident in the Gulf of Mexico is expected to influence the future regulation of safety regimes for deep water activities. DNV’s key role in the aftermath is believed to have enhanced the company’s position in the North American energy market, and will also represent key learning when oil and gas exploration is moving into new and harsher environments like the Arctic.
Stronger in renewables
DNV further strengthened its position in the growing renewable and clean energy sectors, notably in wind energy certification and technology services.
Accredited management certification represents close to 15% of DNV’s total revenue, positioning the company among the top three certification bodies in the world. Within the area of climate change, DNV remains an international market leader in the validation and verification of greenhouse gas emission reduction projects.
Focus on research and innovation
Despite its focus on cutting costs, DNV continued to invest around 6% of its revenue in research and development activities in 2010. Extraordinary innovation projects were also launched as a means of taking a proactive approach to the economic downturn and focusing on innovation and the novel application of existing technology. The introductions of two new ship concepts were examples in 2010.
The report is available electronically from DNV’s website. The printed report will be ready from May 13 and can be ordered on www.dnv.com/resources/publications.
Date: 2011-05-10