Integration of Dresser-Rand and Rolls-Royce Energy
Siemens expects more synergies in oil and gas business
14.07.2016 – Despite a material downturn in the sector, Siemens expects the acquisition of Dresser-Rand and Rolls-Royce‘s former energy business to generate considerably greater synergies than originally anticipated. At the Energy and Oil & Gas Capital Market Day in Houston, Texas, Siemens Managing Board member Lisa Davis explained that the integration of the two companies was expected to generate synergies of 365 million euros by fiscal 2019 – or 165 million euros above the planned figure. Rolls-Royce‘s former energy business would contribute synergies of 115 million euros in fiscal 2019. Annual synergies from Dresser-Rand are now expected to hit 250 million euros by fiscal 2019. ”Dresser-Rand and Rolls-Royce Energy are perfectly complementing our offerings in the oil and gas business. On the revenue side, we‘re realising substantial synergy potential with our expanded product portfolio, cross-selling and services. On the cost side, we‘re achieving this primarily by consolidating R&D and procurement, and optimizing our footprint,“ said Lisa Davis.
The synergies are being generated to a large extent by a strong business portfolio seamlessly combining electrification, automation and digitalisation that enables Siemens to uniquely offer complete solutions and services along the entire energy value chain. Siemens is the leader in power transmission as well as automation and drives, as well as having leading positions in the fields of oil and gas, fossil-fueled power plants and power distribution.
Along the entire energy value chain, Siemens is profiting from its undisputed strength in the digital enterprise. The company‘s new Sinalytics platform offers customers a technology that further enhances the reliability and efficiency of its products. Sinalytics connects and backs up installed Siemens systems worldwide, thus enabling remote systems monitoring and maintenance. Based on advanced data analytics, the platform can predict and prevent errors and identify possibilities for optimizing performance while also reducing energy consumption and cutting costs. At Siemens, Sinalytics processes an average of 550 GB of data from more than 300,000 devices every day. The order backlog for long-term, flex contracts in the power generation services business already amounts to around 3 billion euros. Geared not to rigid service intervals but to customer requirements, flex service contracts focus on maximizing system reliability, availability, efficiency and flexibility. Advanced algorithms, sophisticated data analytics and machine-learning technology are the basis for intelligent systems that are continuously fed fleet- and unit-specific operation and maintenance data.
Lisa Davis, Member of the Managing Board of Siemens AG, Power and Gas, Wind Power and Renewables, Power Generation Services
Share:
