Rolls-Royce share price: Group inks ship design deal with Norwegian company
Rolls-Royce Holdings (LON:RR) has inked a ship design and equipment deal with Norway’s Gunnar Langva, the British company has said. The move is good news for the FTSE 100 engine maker, whose recovery continues following a string of profit warnings.
Rolls-Royce’s share price has been steady in London in today’s session, having added 0.79 percent to stand at 916.62p as of 14:48 BST, largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.83 percent higher at 7,426.25 points. The group’s shares have added just under a fifth to their value over the past year, and are up by some 37 percent in the year-to-date.
Rolls-Royce announced in a statement yesterday that it had signed a contract to deliver ship design and an extensive range of ship equipment to a purse seiner / pelagic trawler to be built for the shipowning company Gunnar Langva AS based in Ålesund, Norway. The company, however, did not disclose the financial details of the deal.
The 75-metre long vessel is to be built by Westcon Yards in Norway, and the UK group’s contract is signed with the yard. The new deal marks Westcon’s second order for Gunnar Langva. The previous vessel was delivered in 2013 and also designed by the British engine maker.
The news comes as Rolls-Royce continues with its recovery under chief executive Warren East, who has been looking to turn around the company’s fortunes following a string of profit warnings and a bribery scandal. The company updated investors on its interim performance earlier this month, delivering a near 150-percent rise in profits. The group’s revenue meanwhile jumped 12 percent.
In analyst ratings, Deutsche Bank, which sees Rolls-Royce as a ‘sell,’ lowered its valuation on the shares from 570p to 560p. According to MarketBeat, the engine maker currently has a consensus ‘hold’ rating and an average price target of 769.93p.
As of 15:11 BST, Thursday, 31 August, Rolls-Royce Holding PLC share price is 918.00p.