Leading classification society DNV GL reported a loss for the first half of 2017, amid markets that it says will remain weak until the end of 2018.
Ongoing weakness in the newbuilding market for ships and mobile offshore drilling units reduced income for that side of the business. In addition, DNV GL's share of that market dropped to 20%.
DNV GL's pre-tax loss totalled NOK 26m ($3.3m) for the first six months of the year, down from a NOK 372m profit in the same period in 2016.
Operating revenue dropped from NOK 11bn to NOK 9.98bn year on year.
Newbuildings
DNV GL managing director Remi Eriksen does not see signs that the shipping markets will improve in the coming months and that the newbuilding market will remain challenging until 2019, with a possible exception in cruise, gas and dry bulk.
At the end of June, DNV GL had about 13,000 staff. That is about 3,000 fewer than when Det Norske Veritas of Norway and Germany's Germanischer Lloyd merged four years ago. Its book equity stood at NOK 18.1bn.
The DNV foundation owns 63.5% of the classification society's shares. Mayfair, the family company of Gunter Herz and his sister, Daniela Herz-Schnoeckel, owns the remaining 36.5%.
