HØVIK 10.03.2004: Det Norske Veritas (DNV) has delivered sound results for 2003. Preliminary figures show that the company achieved revenues of NOK 5,757 million last year. Its operating profit came to NOK 457 million, while its profit after tax was NOK 300 million, an improvement of NOK 140 million on the preceding year. A quality project relating to safety at sea has been implemented and will cost NOK 100 million annually in the years to come.

CEO Miklos Konkoly-Thege

COO Tor Svensen

The international community’s focus on risk and the increasing tendency towards zero tolerance for accidents has resulted in a high level of demand for safety and quality services, which are DNV’s core areas. The number of DNV employees increased by 156 last year, and was 5,762 at the year-end. Measured in Norwegian krone, the revenues have not increased, but there has been an underlying increase of almost NOK 200 million when exchange-rate effects are taken into account.

However, the pension costs relating to DNV’s defined-benefit pension schemes represent a significant uncertainty. DNV has therefore decided on a transition to defined-contribution pension schemes in the 13 countries that had defined-benefit pension schemes in 2003.

2003 was a year of considerable activity in all four business areas: Maritime, Certification, Technology Services and Consultancy services. “A strong financial base ensures DNV’s independence in our work of safeguarding life, property and the environment,” says CEO Miklos Konkoly-Thege. With an equity of NOK 2,956 million, which gives an equity ratio of 66 per cent, the DNV foundation is well equipped to continue its safety and quality work.

Quality an important competitive factor
Never before has a greater share of the world fleet been classed by DNV than now. At the end of last year, 16.5 per cent of the world fleet was classed by DNV, an increase from 16.1 per cent of the preceding year. Of all the new ships that are on order, 19.3 per cent are to be built to DNV class.

”Our goal is to be world leading in quality. We see that quality is becoming an increasingly more important competitive factor in shipping,” says Konkoly-Thege. “As part of our quality drive, we have established a flying squad of experts who travel to ships all over the world if they are suspected of being on the borderline of what our rules allow with regard to quality,” he continues.

The certification of management systems relating to quality and the environment makes up around a quarter of DNV’s total revenue. On a global basis, DNV now has a market share of 7 per cent. The transition to the new ISO 9001:2000 standard made 2003 a very active year. In the future, competition is expected to harden, with mergers and acquisitions as a result.

DNV will focus on a risk-based approach and a global way of thinking in its certification services. The company is engaged in the development of new sustainable certification services, including those relating to climate changes, renewable energy and companies’ corporate social responsibility.

The oil and gas sector is an important area of technological commitment for DNV. Risk assessments and advisory services related to the handling of uncertainties play a key role, and include methods for supporting decision-making when assessing development projects that involve a high level of uncertainty. During the past year, there has also been a particular focus on the gas market, and services relating to the transport, storage and production of natural gas have been developed. DNV has, among other things, developed new design rules for the construction of CNG (compressed natural gas) installations.

The main area of focus for the consultancy services is risk management relating to management and technology, such as business risk, project risk, safety/security and the environment. This also includes integrity management of large facilities in addition to more IT-related risk management. Last year, major projects were carried out for such companies as Statoil and Norsk Hydro, in addition to projects for a number of customers in the process, railway, airline, roads, telecommunications, finance, food and beverage and utility industries and the public sector.

Facts about Det Norske Veritas (DNV) at the end of 2003 (2002 figures in brackets):

The total DNV-classed fleet:
5 100 ships and offshore installations (5 023)
16.5 per cent of the global fleet (16.1)

DNV-classed rigs:
147 offshore installations (146), including mobile rigs, jack-ups, floating production ships and drill ships, representing 30 per cent of the world’s total tonnage.

Certification:
ISO 9001: 35 564 certificates (35 970)
ISO 14001: 5 078 certificates (4 009)
Other certificates: 5 000 certificates
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Total certificates 45 542
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No. of employees: 5 762 employees (5 606) in 300 offices in 100 countries.