|H1 12||H1 11||Change|
|Order book (£bn)||3.9||2.7*||+44%|
|Underlying revenue (£m)||1,070||1,171||-9%|
|Underlying OE revenue (£m)||622||695||-11%|
|Underlying services revenue (£m)||448||476||-6%|
|Underlying profit before financing (£m)||147||157||-6%|
* 2011 year-end data
N.B. H1 2011 restated to take into account the transfer of Bergen to Engine Holding on January 2nd as per Note 2 on p.19
• A 44 per cent increase in the order book to £3.9bn includes £2.2bn of new orders compared with £1.0bn in H1 2011. Most of this increase is due to the £1bn order by the UK MoD to deliver reactor cores for its fleet of nuclear-powered submarines. Offshore orders were encouraging and reflected the increasing bid activity in the Oil & Gas sector in areas such as Brazil, partially offset by weak order flow in the Merchant sector. The Naval business remains stable. Significant orders in the period included:
o A contract with the US Navy to supply power and propulsion systems for the two latest vessels in the Littoral Combat Ship (LCS) programme.
o A contract with the Republic of Korea’s Navy to supply the MT30 gas turbine to power a new FFX frigate. This is the first order for the MT30 in Asia.
o Over £100m of contracts to design and equip 13 Offshore Supply Vessels (OSVs) for Norway’s Farstad Shipping, Korea’s Hyundai and Brazil’s Navegação São Miguel.
• Revenue fell by nine per cent reflecting lower OE volumes and deferrals by customers of services activity. Services revenue was also affected by lower customer spend as a result of reduced workscopes. This was partially offset by a better capture of the available market from the recent investment in the global network of services centres.
• Profit reduced by six per cent due to lower OE and services volumes, competitive pricing pressures and some adverse foreign exchange movement, partially offset by cost reduction.