Aircrafts engine-maker, Rolls-Royce, has posted a 25% increase in operating profit in the full year period that ended on 31st December 2019, from £616 million in 2018 to hit £810 million ($896.6 million).
Free cash flow (FCF) settled at £911 million, up from £641 million in 2018, which the company largely attributes to higher underlying operating profit and Civil aftermarket cash margin of £578 million.
On the other hand, FCF before working capital movement (inventory, receivables & payables), insurance receipts and Trent 1000 cost was £747 million, up from £418 million in 2018, signifying a 79% increase.
Net cash position rose to £1.4 billion, up from £611 million in 2018, while their gross debt reduced by £1.1 billion.
Trent 1000 in-service cash cost £578 million, up from £431 million in 2018.
Additionally, the company delivered 510 widebody engines, thus reducing average widebody loss to £1.2 million. Engine flying hours recorded a 7% growth, even as large engine installed fleet increased to 5,029.
However, the firm recorded an operating loss of £852 million.
Growth in Africa
Today, Rolls-Royce services 75 aircrafts in Africa, with 35 more aircrafts on order.
20 Airlines in 14 African countries operate Rolls-Royce’s Trent powered aircrafts, including Air Tanzania, Air Senegal, Ethiopian Airlines, South African Airways (SAA), Air Mauritius, EgyptAir, Air Senegal, RwandAir, and Uganda Airlines.
New aircrafts entering into service in 2020 include 2 Airbus A330neo with Uganda Airlines, 2 Airbus A350 with Ethiopian Airlines and 2 Airbus A330neo with RwandaAir.
“Africa is entering a new era buoyed by the promise of free trade, open skies and resilient growth. Home to the world’s fastest-growing aviation market and set to influence the shape of global energy trends, Africa is in a unique position to pursue innovative clean energy technologies. As we enter this new decade, we are focused on growing our presence across the continent and partnering with Africa’s dynamic and forward-looking policymakers, investors and industry leaders to help close the deficit in electrification and support a more sustainable industry powered by innovation and collaboration.”
Patrick Regis – President for Africa & Middle East
The company expects to make 450 widebody engine deliveries in 2020.
Rolls-Royce Holdings plc is a British multinational engineering company that designs, manufactures and distributes power systems for aviation and other industries. It is the world’s second-largest maker of aircraft engines, after General Electric, and has major businesses in the marine propulsion and energy sectors.
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