Rolls-Royce Records 25% Jump in Full Year Profit in 2019

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.

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.

Close to 20 African Airlines 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. Today, Rolls-Royce powers over 60 wide-body aircrafts in Africa, delivering on average, an additional 10 wide-body aircrafts each year.

According to the press release, the company further expects to make 450 widebody engine deliveries in 2020.