Norway: DNV Announces Financial Results for 2011

DNV achieved a 3.7% growth in operating revenue, from NOK 9,792 million in 2010 to NOK 10,156 million in 2011. The operating profit increased by NOK 248 million, or 31%, from NOK 810 million in 2010 to NOK 1,058 million in 2011. The net profit after tax for 2011 came to NOK 730 million, compared to NOK 613 million for 2010 and NOK 854 million for 2009. The cash flow for 2011 was positive.

 “DNV’s market positions are satisfactory and our financial status is strong. This gives us a robust platform from which to achieve our strategic growth targets and maintain our independence as a financially strong and trusted foundation,” says CFO Thomas Vogt-Eriksen.

At the end of last year, DNV announced a strategic partnership with KEMA – a Dutch company that is a global leader in the fields of energy consulting and testing & certification and has world-class expertise in the gas, energy grid and energy efficiency sectors. DNV bought 74.3% of the shares in KEMA.

 “This will truly broaden our service portfolio within the energy field. I’m happy to say that we’ve found a solid, innovative and international partner that shares our strategic vision, purpose and values. Together we are committed to driving the global transition towards a safe, reliable, efficient and clean energy future,” says CEO Henrik O. Madsen.

As a result of this acquisition DNV established a group structure consisting of three separate organisational entities; DNV Maritime and Oil & Gas, DNV Business Assurance and DNV KEMA Energy & Sustainability.

 Breakthrough in the container ship segment

DNV experienced a breakthrough in the container ship segment in 2011, capturing 19% of the newbuilding contracts.

“This achievement is mainly due to long-term, targeted marketing efforts, supported by dedicated positioning through innovation, technology and service delivery,” says Henrik O. Madsen.

In total, DNV managed to secure 278 new classification contracts in 2011, corresponding to 12 million gross tonnes (GT). This gives an estimated market share of 14% in numbers and 22% in gross tonnes. The DNV-classed fleet has grown from 5,909 ships and mobile offshore units end of 2010 to 6,166 end of 2011. This represents a growth of 4%.

 Focus on innovation

DNV considers research and innovation to be one of the most effective means of increasing technological capabilities and providing high quality services to its customers. The company continued in 2011 to invest around 6% of its revenue in research and development activities. Extraordinary innovation projects were launched as a way of taking a proactive approach to the economic downturn, focusing on innovation and the novel application of existing technology.

DNV has developed several concept ships as the basis for dialogues with shipowners, yards and designers in order to find solutions and innovations in response to emerging market needs and new regulatory requirements

 “Looking ahead we are well positioned to exploit opportunities and needs in certain high-value shipping segments, especially those which are offshore-related. Green shipping, innovation and more energy-efficient ship types will also represent opportunities for DNV and the shipbuilding industry in general,” concludes Henrik O. Madsen.

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Offshore WIND staff, April 26, 2012