Rolls-Royce share price in focus as company agrees propulsion systems deals
Rolls-Royce Holdings Plc (LON:RR) has inked two deals to deliver propulsion systems for five double-ended ferries, the London-listed engine maker has said. Rolls-Royce’s share price was little changed in yesterday’s session, closing 0.84 percent lower at 944p, with the decline broadly in line with a drop in the London market. The engine maker’s shares have lost about eight percent over the past year.
Rolls-Royce said yesterday in a statement it had signed contracts with Bastø-Fosen and Fjord 1 in Norway for azimuth propulsion systems for five new double ended ferries. The company said that the contract value stood at £5.5 million in total.
The ferries, which are designed by Multi Maritime and will be constructed in Turkey, are scheduled to enter into service along the coast of Norway in the summer of 2016. Three of the ferries will be delivered to Bastø-Fosen with the remaining two to go to Fjord 1.
The blue-chip company explained that the ferries were designed to commute back and forth between ferry quays along the rugged Norwegian coastline. Helge Gjerde, Rolls-Royce’s Senior Vice President for Commercial Marine, commented in the statement that the company was “ very proud to support these ferries which are part of Norway’s key coastal transportation system”.
The ferry propulsion deals mark Rolls-Royce’s latest contract win, with the company last week securing an order from the Grimaldi Group to upgrade five vessels with fuel-saving technology for an undisclosed amount. Separately, the company was awarded a $1 billion (£676.7 million) contract to provide jet engines to Air China, which will power 15 Boeing 787-9 Dreamliner aircraft.
Rolls-Royce is scheduled to update investors on its recent performance on May 8. The day would also mark the company’s annual general meeting.
As of 07:48 BST, Thursday, 09 April, Rolls-Royce Holding PLC share price is 944.00p.
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