Shipping’s largest classification society DNV GL claims it has cut its costs by over $500m in three years in response to the oil and gas and shipping market downturn.
Chief executive officer Remi Eriksen says the company is now ready to return to a growth path in the latter half of this year.
Commenting after announcing operating revenue of NOK 19.45bn in 2017, Eriksen said: “Over the last three years we have reduced our cost base by more than NOK 4bn ($517m), so we are certainly more lean and in better shape for the prevailing market conditions.”
Last year earnings before interest, taxes and amortization (EBITA) came in at NOK 947m, although DNV GL cautioned these are preliminary figures ahead of the audited results to be announced at the end of April.
While shipping and offshore have struggled business assurance, energy and digital solutions have shown positive growth Eriksen said.
The digital drive has seen DNV GL issue 40,000 maritime certificates electronically.
Last year the Norwegian DNV Foundation assumed full control of DNV GL after buying out German shareholder the Mayfair Group.
Eriksen said the acquisition is a positive move for the future of the classification society.
“We now have one owner with a long-term view, but with high short term ambitions," he said.
"One hundred percent of the profit made by DNV GL will remain in the group of companies to further develop and position the company globally.
"We will continue to invest in research, development and innovation as well as continue to take bold moves on our digitalization journey."
