Quarterly News Review from Rolls-Royce: Second Quarter 2008
Monday, 7 July 2008
The latest quarterly news round-up from Rolls-Royce plc demonstrates the breadth of the Group’s portfolio and its increasing access to global markets. The company’s most significant announcements in the quarter, 1 April - 30 June 2008 were as follows:
- Trent 900s for THAI. THAI Airways International selected the Trent 900 for its new fleet of six Airbus A380s. The Trent 900 has a 58 per cent share of firm and option orders on the A380, and has been chosen by ten of the 13 operators that have announced an engine selection.
- Trent 700s for Sichuan. Sichuan Airlines chose Trent 700 engines to power its fleet of three leased Airbus A330-200 twinjets from AerCap. The order includes a long term TotalCare® services agreement. Sichuan Airlines is the 53rd customer or operator to select the Trent 700, which has a 53 per cent market share for the A330.
- Business jet forecast. Rolls-Royce updated its forecast for the business jet sector, anticipating continued growth in jet deliveries through the remainder of the decade, with an engine market worth $110 billion over the next 20 years. Demand is being augmented by an increase in non-US markets coupled with new models.
- First run of BR725. The 16,100lb thrust BR725, which will power the Gulfstream G650 corporate jet, completed its first run at the company’s facility in Dahlewitz, Germany. The engine is the sixth new powerplant to be added to the company’s civil aerospace portfolio in six years.
- Russian rigs. Mooring equipment worth around £10 million will be supplied to two ice-class drilling rigs to operate in the Shtokman field, one of the world’s largest natural gas fields in the Russian sector of the Barents Sea. The contract marks a breakthrough for Rolls-Royce in the expanding Arctic exploration and production market.
- Polar research. Rolls-Royce has won a contract to design a research vessel which will operate in both Arctic and Antarctic waters. The ship, ordered by the Norwegian Institute of Marine Research, will carry out meteorological and sea floor studies and will also monitor fish stocks.
- Seismic research vessel. Rolls-Royce has won its first design and equipment contract, worth £13 million, for the Chinese seismic research vessel market. The vessel, one of the world’s most advanced, was ordered by BGP Marine China, a subsidiary of China National Petroleum Company (CNPC).
- Patrol craft waterjets. Six new fast patrol craft that will help the Trinidad and Tobago coastguard protect its islands will use Rolls-Royce waterjets to help reach speeds of up to 40 knots. The vessels, to be built by Austal in Australia, will carry out surveillance, safety at sea and search and rescue duties, as well as target illegal drug trafficking.
- MT30 milestone. The MT30 gas turbine, part of the Trent family of engines, went into operation on board a ship for the first time. Two MT30s were ‘lit off’ on board the U.S. Navy’s first Littoral Combat Ship, Freedom, which has been built by Lockheed Martin.
- Safer deck contracts. Four contracts, worth a total of about £50 million, were signed for delivery of safer deck operations equipment for four anchor handling vessels. Two of the contracts are with Karmsund for Ezra, Singapore, and two with Aker Yards for K-Line Japan.
- Trent 60 orders from eight countries. Orders for three additional Trent 60 electrical generating sets were received from existing customers in Belgium and Australia, while energy companies in another six countries confirmed reservations for 27 Trent 60 engines. The potential value of these orders and reservations, when they become firm contracts, exceeds $500 million at today's list prices.
- RB211 Thai orders. Orders for three additional RB211 units, two for gas compression and one for power generation, were received for PTT Public Company Limited’s gas separation plant project in northeast Thailand.
- More RB211s for Petrobras. Brazilian oil and gas company, Petrobras, is due to receive three Rolls-Royce RB211-G62 electrical generating sets for its new Caraguatatuba gas receiving and treatment station in the fourth quarter of this year.
- Additional RB211 for China pipeline. An additional gas compression package, scheduled to be operational by the end of 2009, increases the number of RB211 gas turbine compressor units on the China West-East Gas Pipeline Project to 16.
Operations and technology
- Composite research. A joint venture with GKN Aerospace will carry out research and development into the use of composite materials in aero engine fan blades. Rolls-Royce will fund and own 51 per cent of the venture.
- Science Prize. The third annual Rolls-Royce Science Prize has been awarded to St Anne’s Primary School, based in Corkey, Northern Ireland, for its extensive project on water management. St Michael's Roman Catholic School in Billingham was the runner up. Both schools were commended for working with industry to engage young scientists and show them how science can make a practical difference. The Rolls-Royce Science Prize rewards excellence in science teaching across the UK and Ireland, and has so far awarded £440,000 to 196 schools.
The Group will report its interim results for the six-month period ending 30 June 2008 on 24 July 2008.