Marine

Financial

The order book declined by eight per cent. However new order intake during the year improved by 15 per cent to £2.1bn providing some evidence of recovering demand. Significant systems and equipment orders during the period included:

• MT30 gas turbines and water jets for a ten vessel contract for the US Navy Littoral Combat Ship.
• First orders for the award-winning Environship, including two vessels for Norway’s Nor Lines AS.
• 60 water jets for a new fleet of 20 Fast Patrol Vessels for the Indian Coast Guard.
• An order to design and equip two anchor handling vessels for Farstad Shipping in Norway.

Revenue declined by 12 per cent due to a 23 per cent decline in OE revenue that was partially offset by a nine per cent improvement in service revenue. The recovery in OE that had been expected in the second half of the year did not materialise as customer investment decisions were deferred. The improved service revenue was driven by the expansion of our network of marine supply centres and the growth of our installed fleet.

Profit declined by three per cent relative to a fall in revenue of 12 per cent reflecting an improved revenue mix and an increased focus on costs and operational performance. 

Portfolio

• In May, the UK Government announced its decision to replace the UK’s Vanguard class nuclear submarines with a new design of submarine utilising our Pressurised Water Reactor (PWR) Generation 3 reactor technology.
• In September, we announced the success of our joint tender offer for Tognum. This acquisition brings together highly complementary product and technology sets and represents an important strategic step in the long-term development of the business.
• We continue to invest in our service capability and capacity, with customer training centres opening in Norway and Singapore, and service centres opened or expanded in Namibia, the Netherlands, Poland, Germany and Hong Kong.