Høvik, March 14, 2008 - The strong growth in the world economy, with a high level of activity in most industries, have resulted in “good financial performance and a long-term order reserve,” says DNV’s Chief Executive Officer Henrik O. Madsen.
“This has led to positive developments for DNV, and the company has achieved a growth of 11 per cent in its core activities.”
The global focus on risk and zero tolerance for accidents has resulted in significant demand for DNV’s services for managing risk. Based on its competence of identifying, assessing and managing risk in multiple fields, the company has experienced a growth in its core activities.
The 2007 financial figures published by DNV show that the company achieved a revenue of NOK 8 126 million (USD 1 383 million) last year, producing an operating profit of NOK 873 million (USD 148 million). The profit after tax came to NOK 536 million (USD 91 million).
“A sound financial foundation is required to secure the independence and integrity of DNV’s operations,” says Mr Madsen. “It is gratifying that our positive performance and growth comes during a period when DNV has been especially active in its work to make a positive impact on our customers’ business globally, while safely and responsibly improving their business.”
Within the field of ship classification, DNV’s share of the world fleet measured in gross tons is approximately 16 per cent. Of the newbuildings contracted during 2007, DNV’s share of the world market was 19 per cent when measured in gross tons. This represents 741 ships. A total of 5 400 trading vessels, representing 121 million gross tons, were classed by DNV at year-end, which is an all-time high for DNV.
The demand for risk-related technology and management services has also been high in the oil and gas industries. “Such services are in great demand, ensuring a high level of activity for DNV in the energy sector. High oil prices have made it more sustainable to develop front-end technologies in pursuit of new resources. The qualification of new technologies is a stronghold for DNV. Brazil, China, India and North America represent important areas of growth, while the North Sea is still DNV’s largest single market for services to the oil and gas industry,” says Mr Madsen.
Certifying management systems makes up around a quarter of DNV’s total revenue. “DNV is among the world’s three largest companies within accredited quality management system certification, and world leader in environmental management system certification,” says Mr Madsen who also points that there is a clear trend towards more industry-specific certification schemes, which will increase the need for a deep understanding of the various industries.
“As an example, DNV plays an active role in making the emission trading mechanism of the Kyoto Protocol become operational. Services where DNV has a strong international position include validation of projects for emission reduction and verification of actual emission reductions in specific projects,” asserts Mr Madsen.
Looking ahead, Madsen believes that the demand for DNV’s services will continue to be high in 2008. “This is based on the assumption of a vibrant world economy, continuously high energy process and a high level of activity in all our main markets. The order reserve is satisfactory at the start of this year for all business areas, and we expect a sound growth throughout 2008.”
| Profit and loss account | 2007 | 2006 | 2005 |
| Revenue | 8 126 | 7 297 | 6 683 |
| Operating profit | 873 | 794 | 750 |
| Financial items | -1 | 31 | 49 |
| Tax | 336 | 280 | 271 |
| Profit for the year | 536 | 546 | 528 |
All figures in MNOK.