DNV’s continued focus on customer relations, quality and an ability to provide innovative services are key components in a strategy that is helping DNV expand further into the Middle East market – despite the economic downturn.
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With the strong demand for risk management services in the region’s maritime, energy and industrial sectors, DNV in the Middle East has recently announced record turnover. Revenues for 2008 totalled US$ 49 million, up 58% on 2007 levels.
Commenting on developments in the Middle East, DNV’s Area Chair and regional Manager for Maritime Peter Hamer says: “There’s pressure coming in the industries we serve, but rates are holding up at the moment. We’re hearing from sources in the market that some projects are on hold, and companies are waiting to see where it bottoms out.”
Mr Hamer points out that 2008 was a year of financial and business volatility, and this meant and increasingly complex risk environment for both DNV and its customers.
“The need to manage technical, societal and business risks is more urgent than ever. Our results for 2008 show growth, but in the long-term the financial downturn is also expected to affect the results of DNV as a whole. With this in mind, we will continue our focus on customer relations, quality and the ability to provide innovative services to help position us for the future.”
DNV has 175 employees in the Middle East, spread over a network of 11 offices in eight countries, and supplies a full range of technical and consultancy-related services in multiple fields. It set up its first office in the United Arab Emirates 32 years ago.
The DNV group, headquartered in Oslo, Norway, also delivered strong financial results in 2008, with a growth in total revenue of 19.4% and a net profit of NOK 583 million. At the year-end 2008, DNV’s equity ratio was 58%. The number of employees increased by the net figure of 1,003 to a total of 8,694 employees.
“DNV strengthened its position in all its main areas in 2008. With growth in both total revenue and number of employees, the company has maintained a sound profit margin;” said President and CEO Henrik O. Madsen. “This ensures a strong financial foundation, which is required to secure the independence and integrity of DNV’s operations.”
More than 20% of all ships contracted in 2008, measured in gross tons, were ordered to DNV class. This represents a strong position in a year in which the first nine months were characterised by a large number of new contracts and the last three months showed a sharp decrease in contracting and several cancellations of newbuilding contracts. A focus on quality has ensured DNV a close to 16% share of the world fleet.
Technology qualification, risk-based assessment, asset management and offshore classification are services that have contributed to a 25% growth for DNV in the energy sector. The fall in the oil price in the last months of 2008 did not lead to any substantial loss of revenue, indicating that there is a continued demand for DNV’s services. Renewable energies represent considerable growth areas.
Accredited management system certification represents close to 14% of DNV’s total revenue, positioning the company among the top three certification bodies worldwide. Certification in the fields of quality, environment, safety, IT security, food safety and healthcare is building the DNV brand among more than 60,000 customers on all continents.
DNV is the market leader in the validation and verification of CO2 emissions as part of the quota trading mechanisms under the Kyoto Protocol and other schemes, with a 48% share of the clean development mechanism market. Corporate responsibility services are also increasingly in demand.
“At DNV, we recognize that risk management is becoming increasingly important for companies across all industries, which is why we remain committed to developing our core competencies to identify, assess and advise on how best to manage technical and business risks,” says Peter Hamer and concludes, “By providing business with tools to manage risk, we strive to help our customers maintain a safe and sustainable business and, in the process, go some way to realising our purpose to safeguard life, property and the environment in the Middle East.”