Rolls-Royce has secured an another contract from the U.S. Navy to supply power and propulsion systems for further two latest vessels in the U.S. Navy's Littoral Combat Ship (LCS) programme.
The LCSs named Little Rock and Sioux City, designed to operate in combat zone close to the shore (littoral waters), will have two Rolls-Royce MT30 gas turbines powering four large Mk1 waterjets which will help the vessels to travel at around 40 knots. MT30 is derived from aero engine technology and builds on over 45 million hours of operating experience.
"This order builds on the success of the Rolls-Royce powered Littoral Combat Ships to date and we're delighted that we will also power the Little Rock and the Sioux City. We have worked closely with Lockheed Martin, the U.S. Navy and other partners during the LCS programme, using our extensive experience to further develop these highly advanced ships. The combination of the MT30 gas turbine and our latest waterjet technology will ensure these ships are at the cutting edge of global naval capability," said Andrew Marsh, President of Rolls-Royce while commenting on the contract.
The power systems company already powers two Lockheed Martin Littoral Combat Ships, the USS Freedom, which was deployed two years early and the Fort Worth, which is due to complete trials later this spring.
RBC raises Rolls-Royce's price target to 990p from 900p and assigns 'Top pick' rating on the stock, while Bernstein raises price target to 820p from 795p and assigns 'Marketperform' rating.