Erginbilgic has taken the shake-up to revive Rolls-Royce's fortunes since his appointment in January. Photo: F. Carter Smith/Bloomberg.
Rolls-Royce is stuck in «standby mode» until the UK commits to building next-generation nuclear power plants, its chief executive said.
The government has launched a competition for prefabricated small modular reactors with up to £20bn available, but it remains to be decided which sites in the UK will host them and how much will be purchased.
This means it is harder for companies to attract money, as loans are usually backed by projects and future earnings.
Rolls-Royce CEO Tufan Erginbilgic is among executives growing increasingly annoyed at the government's lack of clarity.
“Raising money is part of the problem,” he said, adding that the company then needs to move on to the “implementation phase” of building factories. “How many more years do you want to stay in this mode?”
Last week, Energy Secretary Grant Shapps announced an SMR competition in which one to four projects were to receive funding.
D Mr. Erginbilgic said he was confident that Rolls-Royce was in «good shape» to compete for money.
His comments came as Rolls-Royce turned a profit on Thursday thanks to the return of long-haul transportation. and recent cost-cutting efforts.
The Derby-based engineer posted a profit of £524m in the first half of the year, compared to a loss of £111m in the same period in 2022.
This happened less than a year after he took over the company. a firm he described as a «burning platform» shortly after his appointment in January.He has since embarked on a shake-up to revive her fortune, including shutting down parts of the business.
However, Mr Erginbilgić also benefited from the resumption of international travel as Rolls-Royce was able to charge higher prices for its engines, resulting in an increase in revenue of up to £6.95 billion.
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The company charges a fee. customers per hour of flight using its engines.
Hours increased by 36% to 83% from pre-pandemic levels, and despite high inflation, costs were reduced.
Erginbilgic said: “Higher profits and cash generation reflect higher productivity, efficiency and best business results. We are managing our cost base tightly to offset inflationary cost pressures.”
The company has reduced its debt by £500m to £2.8bn, which should help it regain a higher credit score.
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It has also been affected by increased defense orders.
Rolls-Royce provides power and propulsion for British nuclear submarines and has also been selected to supply reactors for Australian ships from the early 2040s.
His energy business, which produces diesel engines for ships and generators. , is Mr. Erginbilgic's key task for improvement.
He previously described the division as «grossly unmanageable,» but the company said Thursday it should offer a higher rate of return later in the year. year last week, causing his stock prices to skyrocket.
Mr. Erginbilgic is halfway through checking out the business, having already shut down some small parts of the engineer. In November, he said, he will unveil a broader plan for Rolls-Royce.
He promised to close the R2 plant, which was set up to sell Rolls-Royce's own AI software.< /p>
Rolls-Royce's direct carbon capture project, which was aimed at removing existing CO2 from the atmosphere, will also be phased out.
It is understood that Rolls executives are considering expanding partnerships with outside investors, reflecting investments that he has recruited for his mini-nuclear weapons program, which has raised money from Qatar's state wealth fund.
His electric aircraft business is considered one of the candidates.
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