Høvik: The preliminary figures published by Det Norske Veritas (DNV) show that the company achieved a revenue of NOK 6 689 million last year, producing an operating profit of NOK 668 million. The profit after tax came to NOK 448 million.
The global focus on risk and zero tolerance for accidents has resulted in great demand for services related to safety and quality. This has led to positive developments for DNV in 2005, and the company has achieved a growth of 15% in its core activities.
”A strong financial basis is the cornerstone that ensures our independence in our work of safeguarding life, property and the environment. With its equity of NOK 3 116 million, which gives an equity ratio of 64, DNV has full freedom of action to make an aggressive commitment to the future,” says CEO Miklos Konkoly-Thege.
Miklos Konkoly-Thege is retiring in May after four years as CEO. His successor, Henrik O. Madsen, has held various positions in DNV since 1982. He has been regional manager of Denmark and Japan, and has been in charge of the strategic and business developments in DNV’s maritime operations. As a member of DNV’s Executive Board, he has been responsible for two of the company’s four business areas during the 1998-2005 period – oil & gas and certification. He has also been the head of the company’s research unit.
Exciting Arctic challenges
DNV is experiencing strong growth in the oil and gas sector, where there is considerable demand for risk-related services. Great opportunities are now opening up in the Barents Sea. The development of the oil and gas fields on both the Norwegian and Russian sides involves extensive challenges and DNV has good relationships with Russian oil companies, pipeline operators and the Russian classification society. Transporting the oil and gas from these new fields also poses major challenges. As examples can be mentioned the fact that Gazprom, the Russian state-owned oil company, has adopted DNV’s pipe-laying standard and that DNV is reckoned to be the world’s leading classification society for ships operating in Arctic areas. In addition, DNV is involved in developing new technological solutions for carrying LNG – compressed liquefied natural gas.
Strong market position
Last year, DNV strengthened its market position in all its main areas: maritime, certification, oil & gas and consulting.
At the year-end, DNV classed 16.5 per cent of the world’s fleet, about the same as at the year-end 2004. DNV classed a total of 5 093 ships in operation, equivalent to 107.2 million gross tonnes, last year. Almost 20 per cent of all the newbuildings on order worldwide, measured in gross tonnes, are to be built in accordance with DNV’s class rules. This equals 294 ships.
The certification of management systems to ISO standards was considerably modernised by the introduction of Risk Based Certification in 2004. DNV, which is one of the world’s three largest certification bodies, has introduced a completely new way of carrying out certifications through its commitment to risk-based certification. This new method differentiates DNV from its competitors and has been welcomed by accreditation bodies and international companies. The companies receive a report on their key areas of focus in addition to the certificate showing that their management systems meet the ISO standards.
Among DNV’s business activities, technology services and risk management consulting services have contributed most to the growth in 2005.
| Profit and loss account | 2005 | 2004 | 2003 |
| Revenues | 6 689 | 5 957 | 5 762 |
| Operating profit | 668 | 389 | 459 |
| Financial items | 34 | -52 | 0 |
| Tax | -252 | -190 | -152 |
| Minority interest | -3 | -2 | 0 |
| Profit for the year | 448 | 146 | 308 |
All figures in MNOK
*) The 2005 operating profit NOK 200 million can be attributed to the sale of DNV Inspection in Sweden and DNV’s facility management in Norway.
At the year end, DNV had 6.095 employees, compared to 6.236 a year ago. The difference is mainly due to sales of DNV Inspection and DNV’s facility management.
Key figures for Det Norske Veritas (DNV) at the year-end 2005 (2004 figures in brackets):
Total no. of ships to DNV class:
5 093 ships and offshore installations (5 240)
16.5% of the world’s fleet (16.6)
DNV-classed offshore units:
167 offshore installations (157), including mobile rigs, jack-ups, floating production ships and drilling ships, representing 30% of the world total.
| Certification: | |
ISO 9000: | 42 805 certificates (39 646) |