DIVISION OFFSHORE & MARINE

Offshore & Marine is the largest division at KONGSBERG, delivering systems for dynamic positioning and navigation, marine automation, cargo management and level sensors.

2006 was a good year for the division. There was growth in all areas, and the backlog of orders will keep the division busy for the next three to four years.

Dynamic positioning systems (DP systems) for offshore vessels have been a successful product for many years, and the segment is continuing to grow rapidly. Our DP systems are installed on supply ships and floating oil installations and gaining popularity on cruise ships, supply vessels and lighter construction vessels. Originating in the North Sea, this market has developed at the international level, especially in China, India, the US and Brazil. KONGSBERG has a leading global position in this market, and we expect to maintain it. On the rig market, KONGSBERG has a strong position in positioning, navigation (bridge) and automation.

Marine automation (vessel automation) for merchant vessels and offshore vessels encompasses systems for controlling the engine, cargo and propulsion. There is a tremendous need for carriage, and we envisage robust growth in the merchant marine. KONGSBERG's tangible presence at and good relations with shipyards in China and South Korea contribute significantly to the strong influx of new orders and large backlog.

The market for automation and steering systems for LNG (Liquefied Natural Gas) carriers saw a high level of activity again in 2006. Kongsberg Maritime is currently involved in more than 70 LNG carriers on order, under construction or in operation. It is important for Kongsberg Maritime to be present and help develop the new generation of LNG carriers to maintain its position in the market.

Navigation encompasses bridge equipment for merchant vessels and offshore vessels, completing the division's range of products. By integrating the various sub-systems and converting everything to the same technology platform, KONGSBERG can accommodate more of its customers' needs.

In 2007, the division will concentrate on upgrading the equipment on older merchant marine vessels and on the offshore market. Another target area is global sourcing. In other words, the division will outsource the procurement of produced equipment to local suppliers in the areas in which it is most cost effective to purchase and manufacture the products.