DNV GL has announced its results for the first financial year following the merger between DNV and GL, reporting a combined revenue increase of 10% - from NOK 19,704 to NOK 21,623 - compared to the previous 12-month period.
Thomas Vogth-Eriksen, DNV GL Group Chief Financial Officer, said that DNV GL delivered "solid" financial results in 2014: "We achieved operating revenues of NOK 21,623 million in 2014, an increase of NOK 1,919 million from 2013 (a pro-forma view in which the GL Group is fully included from 1 January 2013). Of the 10% revenue growth, 4% is organic growth in DNV GL. Less than 1% is non-organic growth, including acquisitions of Danish Standard Certification and Marine Cybernetics, and 5% is the result of currency effects. The currency effects accelerated in the last quarter of the year due to the NOK weakening against most major currencies.
"The net profit for 2014 was NOK 1,007 million, compared to NOK 825 million for 2013. The net cash flow for the year was NOK 57 million. The cash flow from operations was NOK 1,658 million in 2014, which reflects solid results and positive currency effects, but was partly offset by an increase of NOK 701 million in working capital," he commented.
Henrik O. Madsen, DNV GL Group President and CEO, remarked: "While both managing the ambitious merger and maintaining a full focus on providing premium service to our customers, we also increased our revenues by 10%, achieving an operating revenue of NOK 21,623 million."
Madsen added: "In 'year one' - 2014 - we operated as one merged company, but we also celebrated our 150-year history of safeguarding life, property and the environment. Today, we are in great shape and have the competence and resource base required to provide guidance and support to our customers in a complex business environment where the need for technical expertise, trust, governance and risk management is clearly evident."
The amalgamation of two companies, DNV and GL, included the integration of around 16,000 members of staff. Organisationally, the company now operates from a common platform out of 380 locations and has operations in over 100 countries.
Madsen concluded: "There is no doubt that some of our main markets are facing tough times ahead. DNV GL will not remain unaffected, but I have strong confidence in our ability to constantly improve and adapt. Our industries' need for efficiency, safety and sustainability performance improvements are particularly at the core of our capabilities, offering and outreach. We will continue to invest around 5% of our annual revenues in research, innovation and collaboration activities. In this way, we can develop and share the best insights, technical abilities, practices and standards which will help solve the challenges faced by our customers and the industry."
