|FY Review - £ million||2011||2010||Change|
|Order book||1,487||1,164||+28 %|
|Engine deliveries||75||95||-21 %|
|Underlying revenue||1,199||1,233||-3 %|
|Underlying OE revenue||602||691||-13 %|
|Underlying services revenue||597||542||+10 %|
|Underlying profit before financing||24||27||-11 %|
The order book increased by 28 per cent, driven by significant demand in the oil and gas industry. New orders of £1.5bn included a number of significant contracts:
- 32 RB211 gas turbines for offshore application in support of Petrobras. This US$650m contract is the largest signed by the Energy business.
- Six RB211 compressor units for Petro China’s WEPP Line 2 East project.
- Eight Bergen engines for power generation in Bangladesh - 82 now sold in Bangladesh.
- A €250m contract with EDF to supply instrumentation and control (I&C) technologies to the world’s largest reactor upgrade programme, being carried out in France.
Revenue declined by three per cent largely due to the phasing of OE deliveries in power generation. Demand for aftermarket products and services continue to grow with an increase of ten per cent.
Profit fell by 11 per cent as a result of lower revenue and investment in the future growth of our Civil Nuclear business.
- In February 2011, we announced plans for the construction of a new purpose-built gas turbine package, assembly and test facility in Rio de Janeiro, Brazil. The facility, expected to become operational in the first quarter of 2013, will strengthen our support of Petrobras and other customers in the rapidly expanding offshore market in Brazil.
- As in the Marine business, Energy will benefit from the joint acquisition of Tognum. By combining our medium-speed diesel and gas Bergen engines business with Tognum’s high-speed reciprocating engines and systems capabilities, we have significantly enhanced our core product portfolio and global network of sales and service facilities.
We continued to build our capability in the Civil Nuclear sector, with a number of important milestones reached during the year.
- A cooperation agreement was signed with Areva for the manufacture of complex components for the first European Pressurised Reactors to be built in the UK.
- Enhanced MoUs were agreed with Nuclear Power Delivery UK,EDF and Rosatom.
- We acquired the US-based R.Brooks Associates, a world leader in remote inspection.