HOUSTON, Jan. 13 /PRNewswire-FirstCall/ -- Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE: DRC) announced today that it has received two awards totaling over $200 million. The awards, which were booked in December 2008, include an order from Rolls Royce Power Engineering plc to supply DATUM compressors for Gazprom's Portovaya Station for approximately $108 million and an award from Petrobras Netherlands B.V. to supply power generation packages and services for the P-55 semi-submersible production platform for approximately $100 million.
Vince Volpe, Dresser-Rand's President & CEO, commented that "these two contracts add to our growing backlog of deliveries scheduled for 2010 and is further evidence of the continuing investment in the energy infrastructure to support the world's expected need for energy resources over the coming decades."
The Portovaya Compression Station is the head station of the Nord Stream pipeline and will have an installed compression capacity of 354 MW, unparalleled in Russia. It will be built near Vyborg, north east of Saint Petersburg, on the Russian coast of the Baltic Sea. According to Gazprom, the Nord Stream gas pipeline is a new route for Russian gas exports to Europe. It will be approximately 1,200 km (746 miles) long and run across the Baltic Sea from the Portovaya Bay to the German coast, near Greifswald.
"We're pleased that Gazprom and Rolls Royce selected Dresser-Rand to supply DATUM compressors for the Portovaya Head Compression Station," said Jesus Pacheco, Dresser-Rand's Executive Vice President of New Equipment Worldwide. "The advanced technology of the DATUM compressors combined with Rolls Royce's gas turbines for this application provides Gazprom with the best solution in terms of equipment and operating costs, as well as a reduced level of emissions compared to other technologies." Pacheco added that "Dresser-Rand's DATUM compressor efficiency significantly contributes to maximizing gas exports and its modular design minimizes downtime."
The P-55 award from Petrobras includes a $78 million supply contract for four (4) gas turbine driven power generation units using Dresser-Rand's advanced, modular VECTRA 40G power turbines and a services contract of up to $22 million. P-55 will be a semi-submersible platform with a production capacity of 180 thousand barrels per day of oil. It will be installed in a water depth of 1,795 meters at the Roncador field in the Campos Basin. It is scheduled to begin operations in early 2012.
Pacheco noted that "This award adds to our growing presence in Petrobras' offshore installations with both power generation and compression solutions, and is further evidence of how the value of our technology continues to support our role as a leader in the build out of the growing floating production market."
About Dresser-Rand
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 33 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 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 www.dresser-rand.com.
DRC-FIN
SOURCE Dresser-Rand Group Inc.
