From Breakingviews - Rolls-Royce strategy bind is a problem best shared
expectations for 2022, after a year blighted by an acute aviation sector recession. But new Chief Executive Tufan Erginbilgic still has a problem.burning platform
”, Erginbilgic pleasantly surprised them by disclosing 505 million pounds of free cash flow last year, fuelled by a 35% growth in large engine flying hours. That’s way better than the 1.5 billion pound cash outflow in 2021, but also four times what analysts had expected. Even so Rolls, which makes 45% of its revenue from making, selling and servicing commercial aircraft engines, is on the wrong side of the energy transition.
Aviation accounts for about 2.5% of global carbon emissions, with most aircraft powered by kerosene. Rolls focuses on wide-body jet engines used in long-haul flights, the hardest to decarbonise. Deploying low-carbon Sustainable Aviation Fuel offers a stopgap solution to slashing emissions in the short term. But reaching net zero emissions by 2050 may involve ditching gas turbines entirely.
Unfortunately, it’s not obvious which new technology to bet on. Batteries can only be applied to the shortest journeys. One solution could come from hydrogen-powered fuel cell engines - Rolls clinched a partnership with easyJet
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Rolls-Royce Cullinan Black Badge (2023) review: the night knightStealthy for the wealthy: we send _jakegroves to test the RollsRoyce Cullinan Black Badge ⚫️ 'One of the most opulent places to spend your time inside a moving vehicle'
Baca lebih lajut »
New Rolls-Royce boss says more to come after profit beatThe new chief executive of Britain's Rolls-Royce forecast more profit growth in 2023 and said the engineering company was capable of 'much more' after last year beat expectations, sending the stock up 19%.
Baca lebih lajut »
FTSE 100 falls as ex-dividend trades weigh; Rolls-Royce soarsThe FTSE 100 index fell on Thursday, as banking and healthcare majors traded ex-dividend, although a surge in Rolls-Royce after it reported higher profit limited further losses.
Baca lebih lajut »
Flying recovery proves a tailwind for new Rolls-Royce boss's turnaroundTufan Erginbilgic's mission to reverse Rolls-Royce's years of underperformance got off to a strong start when a recovery in flying helped it soundly beat forecasts for profit and cash in 2022 and raise its expectations for this year.
Baca lebih lajut »
New Rolls-Royce CEO Embarks on Strategic Review of Jet Engine-MakerEmbattled British aircraft-engine maker Rolls-Royce has embarked on a strategic review led by its new chief executive in a fresh effort to turn the company around.
Baca lebih lajut »
Rolls-Royce shares soar by 23% after annual results crush expectationsShares of aviation manufacturer Rolls-Royce soared, after the company's annual results sharply beat expectations.
Baca lebih lajut »