Oslo: Preliminary figures published by Det Norske Veritas (DNV) show that the company had revenues of MNOK 5 954 last year, producing an operating profit of MNOK 390.
The profit after tax came to MNOK 153. The number of employees increased last year by 440 to 6 430, among other things due to the acquisition of a total of six companies in the field of risk management close to year-end.
”A strong financial platform ensures our independence when working to safeguard life, property and the environment. DNV’s solidity is higher than ever, with an equity of MNOK 3.116, representing an equity ration of 65. This gives DNV a unique opportunity to pursue new initiatives,” says DNV’s CEO Miklos Konkoly-Thege.
The international community’s focus on risk and zero tolerance of accidents have produced a great demand for safety and quality-assurance services. DNV has spent more than MNOK 200 to acquire companies that further strengthen its expertise in the field of managing risk, primarily aimed at the oil and gas market.
Acquisitions
US-based CC Technologies, which has 130 employees, specialises on technology relevant for the onshore oil and gas pipelines in North America. This company will help to strengthen DNV’s already strong position in the pipeline sector.
Primalux, a company based in Taiwan, has specialised in asset management solutions in the oil, gas and process industries. The 17 employees speak Mandarin, and all the systems have been developed in Chinese. This will clearly strengthen DNV’s commitment to the oil and gas market in China.
Jardine, a London-based company with 20 employees, is recognised provider of asset risk management solution in the oil and gas industry. This company will improve DNV’s expertise in this area in the UK and USA.
The takeover of Alpha, a Norwegian company that employs environmental risk analysis experts, makes DNV more specialised in environment-related services.
Q-labs, which has 105 employees in Europe and the USA, focuses on quality assuring software development processes. Over the past year, DNV has increased its total share of the company to 66 per cent, including an option to buy the remaining shares.
Assessing a company’s non-financial risk is an area in which DNV is developing its expertise. CoreRatings, the leading company in Europe in this field, has 20 employees. Its services cover areas such as environmental and social responsibilities, the working environment, ethics and reputation.
Strong position in the market
DNV has strengthened its position in all its main markets: the maritime, certification, oil/gas and advisory services sectors.
At the end of last year, 16.6 per cent of the global fleet were classed by DNV, a higher share than ever before. A record number of new ships were ordered last year. Just over 20 per cent of all these ships on order – measured in gross tons – are to be built to DNV’s class rules. This equals 403 ships, most of which will be built in Korea, China, Japan and Europe.
A comparison of all the port-state controls worldwide has shown DNV to be the class society with the lowest rate of detained ships. Investments in extra quality and safety measures are an important reason for DNV-classed ships coming out on top. Among other things, ships that are approaching the lower limit of the class rules’ quality requirements receive special follow-up by a separate group of specialists who travel around the world inspecting such ships.
The certification of management systems to the ISO standards has been considerably revitalised by the introduction of risk-based certification. DNV, which is one of the world’s three largest certification bodies, has – through its focus on risk-based certification – introduced a completely new way of carrying out certification work. The new method has been welcomed by both accreditation bodies and international companies. In addition to a certificate stating that the management systems meet the ISO standards, companies receive a report pointing out key areas on which they should focus.
| Profit and loss account | 2004 | 2003 | 2002 |
| Revenues | 5 954 | 5 762 | 5 743 |
| Operating profit | 390 | 459* | 336 |
| Financial items | -58 | -8 | -80 |
| Taxes | -179** | -152 | -117 |
| Profit after tax | 153 | 308 | 140 |
* Includes a profit of MNOK 72 from the sale of an office building in London.
** Includes MNOK 52 from changes in the Norwegian tax legislation.
Key figures for Det Norske Veritas (DNV) at the year-end 2004 (2003 figures in brackets):
Total number of ships to DNV class:
5 240 ships and offshore installations (5 100)
16.6% of the global fleet (16.5%)
DNV-classed offshore units:
157 offshore installations (147), including mobile rigs, jack-ups, floating production ships and drill ships
Representing 30% of the world total
Certification:
ISO 9000: 39 646 certificates (35 564)
ISO 14001: 6 033 certificates (5 078)
Total: 45 679