The GBP27m loss for 2016 compared to a GBP15m profit in 2015, while underlying revenues fell 24% to GBP1.11bn last year compared to GBP1.32bn in the previous year.
“This reflected continued weakness in offshore and merchant, as ship owners deferred overhaul and maintenance on the back of reduced utilisation of their vessels,” Rolls-Royce said.
The marine business orderbook fell by 29% during 2016 to GBP905m reflecting further delays and cancellations in orders. In addition the new order intake was also down 29% on 2015 at GBP715m.
Rolls-Royce has undertaken two phases of restructuring its marine business since 2015 with a total of 1,900 job cuts.
However, Rolls-Royce is continuing to invest in the technology side of the marine business. “The pace of technology change in the sector is accelerating, and we continue to invest in pioneering research into Ship Intelligence technologies focused on data-driven value-added services that facilitate full ship automation in the long term,” it said.
Rolls-Royce said that the overall outlook for its marine business remained “cautious” for 2017. “We expect that the market will continue to feel the impact of low oil prices, and the general overcapacity in several segments will take time to reach equilibrium.”
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
