President - Energy
|Underlying profit before financing costs
|Net assets £m||314||324||346*||348||381|
|Order book - firm £bn||0.4||0.4||0.4*||0.6||0.4|
*restated following the transfer of the diesel business from energy to marine.
Sales analysis 2005:
- Oil & gas
- Power generation
Highlights of the year
The first 12 industrial RB211-based compression packages were installed and commissioned for the West-East Pipeline Project in China, four months ahead of schedule. An additional three gas turbine units were ordered for the expansion of the pipeline's capacity.
Six industrial Trent-based compression packages were delivered to Qatar for the Middle East Dolphin project. This is the first mechanical drive application of the Trent 60, the most powerful and efficient aero-derived gas turbine on the market.
Sharjah Electricity and Water Authority chose two Trent 60 power-generation sets for the latest phase of the Wasit power-plant expansion, and the first Trent 60 for Asia was ordered by a major electricity producer in Yinchuan, China.
Ten RB211 industrial gas turbine power-generation units were ordered to provide electrical power for floating production, storage and offloading vessels operated by Total off the coast of Nigeria and by Petrobras, off the coast of Brazil.
The 500th industrial RB211 was shipped from the Rolls-Royce assembly and test facility in Montreal.
A joint venture was established with a Singaporean consortium to continue development work on solid-oxide fuel cell technology.
The Rolls-Royce energy business supplies a wide range of gas turbine packages to the worldwide oil & gas and power-generation markets, with more than 4,000 industrial gas turbines sold and over 140 million hours of operating experience.
The financial results for 2005 reflect a strong performance by the oil & gas business, offset by the slow recovery of the power-generation market and continued investment in new product technologies.
In oil & gas, we continued to strengthen our presence in emerging markets, winning orders worth over US$120 million for projects in West Africa, over US$100 million from customers in Asia, and over US$70 million for gas turbine packages for Brazil.
The international power-generation market has shown signs of recovery and the Group won important new orders for the industrial Trent in the United Arab Emirates and China.
In 2005, the Group continued to invest in its fuel cell technology. Rolls-Royce and the Singaporean consortium, Enertek Singapore Pte Ltd, will between them invest a further US$100 million in the project. In addition, Rolls-Royce Fuel Cell Systems Limited opened a new Rolls-Royce facility in the UK that will pilot the production of ceramic components for use in fuel cell systems. This business is developing solid-oxide fuel cell systems for megawatt-scale, stationary power-generation applications with the goal of introducing a competitive product this decade.
The services sector enjoyed a record order intake in 2005 and contributed 38 per cent of energy sector sales. Strong growth in long-term service agreements was maintained, with a further £93 million of business secured during the year. This brings the backlog of energy business long-term service agreements to £220 million.