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DNV Group has announced that net profit rose by NOK 215 (US$ 35.3 million), or 106.4%, in the first half of 2013 compared to last year.

Net profit for the first six months of 2013 reached NOK 417 million (US$ 68.5) million. This was up from NOK 202 million (US$ 33.2 million) during the corresponding period in 2012.

DNV Group achieved a strong first half-year performance with nominal revenue growth of 13% to NOK 6,665 million (US$ 1095 million) compared to the previous year. Organic growth was 5%. Maritime and Oil & Gas delivered robust organic growth rates, primarily due to DNV’s classification and verification services.

Overall, DNV said it has a strong balance sheet with no interest-bearing debt and total equity of NOK 5,332 million (US$ 876 million) or 51% of its total assets.

A focus on safety, service quality and the ability to provide leading-edge technology advice and solutions were said to have contributed to the strong half-year performance.

While the industries served by DNV experience cyclical markets and are sensitive to global economic developments, DNV said its financial performance remains robust.

Growth potential

Commenting on the results, DNV Group Chief Executive Officer Henrik O. Madsen [pictured] said: "Our strong focus on safety and service quality and ability to provide innovative services are helping to position us for the future and better serve our customers. Our financial strength is crucial in maintaining DNV’s independent role as one of the world's leading and trusted technology and risk management service providers to what is often referred to as the Testing, Inspection and Certification industry. This is a Euro 150 billion industry, of which some two-thirds consist of customers’ in-house activities while the remaining one-third consists of the activities of external parties, such as DNV. Outsourcing is a global trend and a strong growth driver for this market."

Thomas Vogth-Eriksen, DNV Group Chief Financial Officer remarked: "So far, 2013 has been a strong year for DNV. Overall, we have exceeded our targets and are performing well in challenging markets. The external revenue for the first half of 2013 amounted to NOK 6,665 million, producing an EBITA of NOK 686 million. The nominal growth rate was 13%, while the organic and currency-adjusted growth rate was 5% and the EBITA margin was 10.3%. A further strengthening of the Group’s financial performance is projected for the second half-year. We expect to achieve organic revenue growth of 6% and an EBITA margin of approximately 11.5% for the full year 2013."

DNV and GL joining forces

"Certainly, we are demonstrating that our adaptability to new and developing situations, coupled with our sound market standing and the DNV GL merger agreement which we announced in December 2012, forms an excellent foundation for the future. As concerns the merger, we have achieved clearance from the competition authorities in three of the four required jurisdictions: South Korea, the US and the EU. We hope to receive clearance from Chinese competition authorities shortly and are, pending their decision, currently looking at officially closing the merger transaction sometime this month," said Madsen.

"Given the timeline, the past six months laid emphasis on integration planning so that we are ready to start operating as one company as soon as possible. This will allow our customers to benefit from dealing with a stronger company without experiencing disruption to their business dealings with DNV or GL," added Vogth-Eriksen.

"I firmly believe that DNV and GL is good for our customers, employees and other stakeholders," emphasised Madsen and concluded: "Once merged, we look forward to offering the best capabilities of our respective organisations to further advance the industries we serve. We will have the global positions, expertise and resources required to provide guidance and support in a business environment where the need for independent technical skills and risk management is clearly evident. I really look forward to leading the new company and showing customers, employees and society at large how we create more value, offer more opportunities and contribute to a safer and more sustainable future."