DNV+maintained+its+strong+position+in+2009

Oslo: With growth in both its total revenue and number of employees, DNV held a strong position in all its main areas of activity in 2009. Despite the difficulties in the global economy, DNV achieved operating revenue of MNOK 10,286 in 2009, 8% more than in 2008. The generally high work load supported by a MNOK 500 cost-cutting programme contributed to the preliminary net profit of MNOK 773.

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Throughout 2009, the complex risk reality made it more demanding than ever to manage technical, environmental, societal and business risks. The need for services to identify, assess and manage risk is demonstrated by DNV’s revenue growth and operating profit of MNOK 1,096. At year-end 2009, the equity ratio was 61%, showing that the foundation has a strong financial basis. The number of employees increased by the net figure of 172 to a total of 8,866.

Many maritime industry sectors are in the midst of a serious crisis. The number of contracted newbuildings fell by close to 90% from 2008 to 2009. In 2009, DNV secured 77 newbuilding contracts, representing 9.4 million deadweight tons (DWT) and 4.9 million gross tons (GT). A relentless focus on quality has ensured that DNV classifies more than 15% of the existing world fleet when measured in gross tons. Global Port State detention statistics consistently show that DNV-classed vessels are among those with the lowest detention ratio. This is a key parameter to measure quality.

Technology qualification, risk assessment, asset management and offshore classification are services that contributed to DNV’s 18% growth in the energy sector in 2009 – the fourth consecutive year with growth rates of around 20%. In addition, renewable and cleaner energies represent a considerable growth potential.

Negotiations with Intertek
Accredited management system certification produces close to 15% of DNV’s total revenue. In 2009, this service achieved all-time high revenue, new sales and an operating profit. In spite of this, DNV believes that the market for accredited management system certification has developed to a point where a major strategic move will be necessary in the coming years in order to further develop this service line in DNV. Throughout 2009, DNV negotiated with Intertek, which is one of the world’s leading testing, inspection and product certification companies and is listed on the London Stock Exchange.

DNV is the market leader in the validation and verification of CO2 emissions as part of the quota trading mechanism under the Kyoto Protocol and other regional and local schemes. The company has a 31% market share of Clean Development Mechanism validation and verification projects.

Cost-cutting programme
In response to the global economic downturn, DNV initiated a cost-cutting programme that reduced costs by MNOK 500 in 2009. This programme included moderate salary increases, the elimination of bonus schemes, restructuring of IT support, reduced internal travelling expenses and lower recruitment than planned.

DNV has defined the maritime and energy sectors as its core focus areas. These are industries in which DNV has a strong position built on in-depth knowledge of the business drivers and of the technologies required for safe and sustainable operations. In the next five years, the strongest growth is expected to be seen in the energy sector. This includes oil and gas markets, offshore classification, pipelines and renewable and cleaner energies with a strong focus on wind energy.

Services for combating and adapting to climate change are a priority. These include services relating to energy efficiency, natural gas, renewable and cleaner energies and global and regional schemes for emission trading as well as continued involvement through the Sustainability Centre in Beijing and Clean Tech Centre in Singapore and with MASDAR in Abu Dhabi.

Preliminary annual accounts (figures in MNOK)20092008 final2007 final
Revenue10,2869,5608,126
Operating profit1,0961,188873
Financial items+143-82-1
Tax-466-464-336
Profit for the year773642552
Equity ratio61%53.6%64.9%

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