Rolls-Royce wins contract with Samsung

 
Suzie Neuwirth
AEROSPACE firm Rolls-Royce yesterday said it has signed a contract to supply machinery for two drilling rigs which will be built in Korea.

The deal, which is valued at £22m, was awarded by Samsung Heavy Industries, a subsidiary of the Samsung Group conglomerate, and the drilling rigs will be built for Stena Drilling.

The new rigs are due for delivery in 2016.

“We’ve seen a positive outlook for the aerospace sector recently, which has boosted the stock,” Brenda Kelly, analyst at IG, told City A.M.

“The contract is just the icing on the cake. It shows there are still growth opportunities for the company.”

Shares closed 2.6 per cent higher at 1,174p.