Maintaining sustainable operations
For DNV GL, ensuring robust financial performance is essential to maintaining our independence as an organization. A solid financial base enables us to deliver our strategic ambitions, develop our people, building their skills and competence, and invest in research and innovation, so we remain relevant to our customers. Economic performance is part of how we view sustainability – delivering long-term value in financial, environmental, social and ethical terms.
By delivering a profit, we are able to generate sustainable benefits to society; from creating direct and indirect employment, to paying taxes where we operate, which contributes to local communities. Ultimately, being a profitable company ensures we maintain sustainable operations, invest in our future and deliver on our purpose.
Revenue for the year was NOK 21,551 million with an operating profit of NOK 2,334 million. At the end of 2019, DNV GL Group had a total equity of NOK 15,419 million. We employed 11,832 employees paying a total of NOK 11,716 million in employee wages and benefits. Total tax expenses were NOK 610 million for the year.
We continue to commit 5% of our annual revenues to research and innovation programmes, which helps us to fulfil our purpose to safeguard life, property and the environment.
Towards the end of 2019, we started work on developing a new five-year strategy that will support robust financial and sustainable performance from 2021 to 2025. Our strategy project will run into 2020 and the strategy will be completed and launched at the end of the year.
We are solely owned by Stiftelsen Det Norske Veritas, an independent Norwegian foundation with the long-lasting purpose to safeguard life, property and the environment. This purpose is realized mainly through the 100% ownership of DNV GL Group AS.
Our owner requires DNV GL to run profitable operations so that society at large benefits from the employment, taxes and other economic activity we create. As a result, many stakeholders, including employees, suppliers and subcontractors, and customers, rely on DNV GL to effectively manage our economic performance.
Sustainable and profitable growth is a key criterion for our success. All business areas are expected to meet or exceed their annual revenue targets, but growth must not take place at the expense of profitability, quality or the integrity of our operations.
DNV GL’s approach to managing our tax affairs are as follows:
- DNV GL is dependent upon society’s trust
- DNV GL shall not participate in tax planning or financial transactions which can damage this trust
- DNV GL is to comply with the letter and spirit of tax law in all countries in which we operate
- All group company transactions are to be made on an arm’s length basis as set out under the OECD Guidelines
- Tax cost and risk assessments are to be integrated in all core business considerations, both strategic and in day-to-day operations
- DNV GL is committed to being fully compliant and will provide sufficient information and economic context when reporting to and negotiating with tax authorities.
More information on our tax liabilities in 2019 is available in the financial statements.