Motor Sich signs USD 1.2 bln contract with Russian Helicopters

Motor Sich (MSICH UK) signed a USD 1.2 bln five-year contract to supply helicopter engines to Russian Helicopters, Motor Sich CEO Vyacheslav Boguslayev said at the Dubai Airshow on Sunday. The contract provides for the supply of 1,300 TV3-117 series engines for commercial helicopters. Roman Dmytrenko: This is the first time Motor Sich signed a public long-term contract with Russians, which have historically been its key customers. The key positive from this news is the average price of the engine, which stands at USD 920 ths per unit, while the latest reported figures were close to USD 600 ths (we modeled an average price of USD 700 ths for the next five years). We believe this is due to the fact that most of these supplies are for the newer version of this engine, which Motor Sich recently finished testing and is able to price higher.