DNV to offload its Petroleum Services subsidiary

Founded by the Norwegian foundation DNV in 1981, Singapore-based DNVPS is a provider of fuel management services with customers including ship owners, managers and charterers. The company primarily operates within two segments, fuel quality testing and bunker quantity surveys, fields in which it claims a pioneering position, starting its services in 1981 and 1987, respectively. DNVPS currently claims around half of the global contracted volume in fuel quality testing.

DNVPS has experienced strong growth, reaching $50 million in revenue with a business model said to be resilient to cyclical freight rates. It employs 220 staff and has offices in Rotterdam, Houston, Fujairah and Oslo with four strategically located laboratories, supported by sales and customer support in 150 key shipping clusters. The business provides fuel and cost-efficiency solutions and helps ensure regulatory compliance. Closing of the transaction is subject to legal and regulatory approvals.

“The sale is a strategic decision, based on a review of the DNV Foundation’s total portfolio of activities following the DNV GL merger. DNVPS was not part of the merger process and has remained with the DNV Foundation. We believe the new ownership will provide DNVPS with a stronger platform and better focus for delivering on its strategic ambitions,” said Henrik O. Madsen, president and CEO DNV GL Group. He added that DNV GL will continue its partnership with DNVPS to provide services to new and existing clients.”

Eirik Andreassen, who will remain as managing director of DNVPS, said: “This is a defining moment for DNVPS as we are poised for growth with IK. Opportunities will come from sharpening our focus on our clients’ needs, building on our global leadership position, expanding our high-quality service offerings and R&D capabilities and leveraging our fuel quality testing database to create value and develop innovative services and products.”

Thomas Klitbo, deputy director of IK, said: “DNVPS is an innovative and well-established company in a specialised niche market. The company will benefit from increased global fleet size and increased demand for its services, which will allow it to maximise volume growth. We are looking forward to working with the management team on this project.”