TORFINN KILDAL, PRESIDENT
KONGSBERG MARITIME

2006 has been a year with bustling activity and strong growth in most fields. Sales orders in the offshore industry and the merchant marine market were record-high, exceeding MNOK 4 400 in 2006. The backlog of orders at year-end 2006 came to MNOK 3 054, the highest ever. The EBIT came to MNOK 329, the best ever for the business area.

The high level of activity in the market for drilling rigs is one of the reasons for the boom in new orders. Nearly 50 drilling projects have been initiated, and Kongsberg Maritime is involved in more than 80 per cent of them. The projects are important to us, and involve most of KONGSBERG's products.

Kongsberg Maritime has a strong position in dynamic positioning and manoeuvring systems. There have never been more contracts signed for dynamic positioning than in 2006, and the deliveries included a preponderance of medium- and large-sized systems.

Improvements

Kongsberg Maritime works continuously to further develop and improve its products. Product development takes place in close cooperation with our customers, collaboration which has been constructive for many years. We also work closely with groups of shipyards to streamline the installation and commissioning of our systems. Meanwhile, the company is strengthening its global customer support activities.

Challenges

KONGSBERG is getting more involved in the offshore oil and gas industry.

To deal with these challenges, Kongsberg Maritime acquired the companies Fantoft Process Technologies and Sense Intellifield in 2006. Fantoft Process Technologies delivers dynamic process simulators and real-time systems for oil and gas fields, LNG installations and transportation pipelines. Sense Intellifield delivers products and services in the field of integrated operations for the oil and gas market.

The acquisition of Fantoft Process Technologies and Sense Intellifield also gives Kongsberg Maritime a broader portfolio of products in the rapidly growing market for integrated operations. Integrated operations are having a growing impact on the oil and gas industry with a view to both exploration and production.

Kongsberg Maritime has gathered our hydroacoustics activities into a single division, Subsea. We expect this to facilitate more efficient utilisation of technology. Products will continue to be marketed under the Simrad and KONGSBERG brands.

Kongsberg Maritime is constantly in search of new areas of application for our knowledge and technology.

The high level of activity at Kongsberg Maritime called for the recruitment of 200 new co-workers in 2006. This has brought us more new knowledge and, together with existing knowledge, has raised the company's level of expertise.