DIVISION OFFSHORE & MARINE

2007 was a very good year for the division. Growth was higher than expected in all areas. In 2007, the division's backlog of orders was very good following on the heels of record-high contracting for offshore and merchant vessels, where the division's products maintained strong market shares.

Dynamic positioning (DP) systems for offshore vessels have been a successful product for many years, and the segment continued to grow in 2007. DP systems are commonly used on supply ships and floating oil installations, but they have also been making headway on cruise ships, supply vessels and lighter construction vessels. Based on activities in the North Sea, the international market has developed, especially in South Korea, China, India, the US and Brazil. KONGSBERG has a leading global position in this market, and the systems are under continuous development. KONGSBERG has a strong position on the rig market in dynamic positioning, navigation (bridge), security systems and automation. Marine automation (vessel automation) for merchant vessels and offshore vessels encompasses systems for engine, cargo and propulsion control. There is a huge demand for cargo carriage. In 2007, many orders were placed for our systems for merchant vessels, especially in South Korea and China. KONGSBERG's strong local presence and good relations with shipyards in China and South Korea are important factors underlying the strong influx of new orders and the significant backlog. In 2007, the division increased its presence and expanded its delivery system in Asia, with a larger percentage of the division's employees at the sister companies in South Korea, China and Singapore.

The division delivers automation and control systems for gas carriers (LNG – Liquefied Natural Gas) and is now involved in more than 75 LNG vessels on order, under construction or in operation. It is important to take part in developing the new generation of LNG vessels to maintain the company's position on the market. In 2007, systems delivered to the latest generation of LNG carriers could, for example, offer an automated process for cooling methane. These vessels have conventional propulsion systems in which the degassing of the increasingly more valuable cargo can be reliquefied rather than used for heating the boilers and propulsion.

Navigation encompasses bridge equipment for merchant and offshore vessels, and helps complete the division's range of products. KONGSBERG can accommodate multiple customer needs by integrating the various subsystems and converting everything to the same technology platform.

The subsidiary Kongsberg Seatex, which delivers advanced position reference system to maritime vessels and offshore installations, had a good year in 2007. New orders were especially good for motion sensors and reference systems for dynamic positioning.

After sales and proactive customer support also contributed to the strong orders in 2007.