Rolls-Royce wins Hyundai deepwater vessel contract

Power systems developer Rolls-Royce has announced another big contract win, this time to design and equip four deepwater platform supply vessels for Hyundai.

The contract is worth more than £45m to Rolls-Royce and includes options for a further two of the vessels, which are designed for supplying equipment and services to deep-water oil and gas platforms.

The 4,400 tonne, 97 metre long vessels will feature a range of Rolls-Royce equipment including a diesel electric propulsion system, which the firm said improved fuel efficiency and lowered emissions when operating at reduced power levels.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

They will be built at Hyundai's shipyard in Ulsan, Korea, and are due to be delivered in 2013 and 2014.

"This latest order develops our long term relationship with Hyundai as a builder of these advanced vessels, designed to operate safely in the most challenging conditions," said Jrn Heltne, Rolls-Royce's Senior Vice President of Offshore Ship Technology.

In February Rolls-Royce reported a record-breaking year with underlying profit before tax rising 21% to £1.16bn on the year before.

Underlying earnings per share rose 25% to 48.54p from 38.73p in 2010 and the company said it would pay a final dividend of 10.6p, taking the full year pay-out to 17.5p.

The firm also said that it expects to see see good growth in underlying revenue and underlying profit.