HOUSTON, Oct. 20 /PRNewswire-FirstCall/ -- Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") announced today that its Norwegian subsidiary will supply four power generation packages for a floating, production, storage and offloading (FPSO) vessel. This will be the first of up to four identical contracts, as part of BP's Angola development program. The first contract's sales are estimated at approximately $75 million.
"We are very pleased to have been awarded this contract," said Jesus Pacheco, Dresser-Rand's executive vice president, New Equipment Worldwide. "The award is further evidence of our leading role in the growing FPSO market by also providing power generation solutions for offshore installations. This program further enhances our presence and commitment to supporting our equipment in Angola. The special significance of this order is that it will directly lead to add on business for the following identical projects over the next few years."
The power generation packages, which feature Dresser-Rand's three-point mounted, torque tube design, will be full-load string tested at Dresser-Rand's facility in Drammen, Norway.
Industry sources estimate that there are over 100 FPSO projects planned over the next 5 years. Many of those projects are earmarked for Asia, West Africa and Latin America, and Dresser-Rand continues to believe that this will remain a strong segment of the upstream market over the short and mid term future.
Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The Company operates manufacturing facilities in the United States, France, United Kingdom, Germany, Norway, India, and China, and maintains a network of 31 service and support centers covering more than 140 countries.
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements with respect to planned or proposed repurchase of shares of common stock. Forward-looking statements include, without limitation, the Company's plans, objectives, goals, strategies, future events, future revenue, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information. The words "anticipates", "believes", "expects," "intends", and similar expressions identify such forward-looking statements. Although the Company believes that such statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include, among others, the following: potential for material weaknesses in its internal controls; economic or industry downturns; its inability to implement its business strategy to increase aftermarket parts and services revenue; competition in its markets; failure to complete or achieve the expected benefits from any future acquisitions; economic, political, currency and other risks associated with international sales and operations; fluctuations in currencies and volatility in exchange rates; loss of senior management; environmental compliance costs and liabilities; failure to maintain safety performance acceptable to its clients; failure to negotiate new collective bargaining agreements; unexpected product claims and regulations; infringement on its intellectual property or infringement on others' intellectual property; difficulty in implementing an information management system; and the Company's brand name may be confused with others. These and other risks are discussed in detail in the Company's filings with the Securities and Exchange Commission at http://www.sec.gov/. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. The Company can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on results of operations and financial condition. The Company undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. For information about Dresser-Rand, go to its website at http://www.dresser-rand.com/.
DRC-FIN
