Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Rolls-Royce replaces finance director as new chief shakes up top team
Tufan Erginbilgic also appoints new heads for engineering group’s two main businesses.................
https://www.ft.com/content/328cdbd3-7a6b-4d3c-b318-c953e8c02025
New CEO of UK's Rolls-Royce brings in new CFO
https://uk.finance.yahoo.com/news/ceo-uks-rolls-royce-brings-062805927.html
Continuation:
He left BP in 2020 after being passed over for the top job. He told journalists he was attracted to Rolls-Royce because of its global brand, and because it was an opportunity to help transition the company to a low-carbon future.
The more immediate task for the new CEO is returning Rolls-Royce shares to their former glory. They traded as high as £3.60 in 2014, and were above £3 in May 2019, not long before the Covid-19 pandemic struck.
Bernstein’s Zhao still sees a risk that shares could falter if the company can’t follow through on its new plans. His price target is £1.08, 28% lower than where shares are currently trading.
“We will need clarity on new targets and strategies,” Zhao says, adding that the company still needs to execute and deliver on the targets.
“That will take time, with downside risks of false starts,” he says.
Rolls-Royce’s CEO Has a Turnaround Plan. The Stock Is Revving Up.
https://www.barrons.com/articles/roll-royce-stock-ceo-turnaround-ba461d51
Rolls-Royce is synonymous with classic British luxury cars. But the company doesn’t actually make cars anymore—that unit has been a subsidiary of Germany’s BMW BMW +1.77% since 2003.
Rolls-Royce still exists as its own company, though. It is mainly an aerospace firm, making and maintaining high-powered engines. It’s more like General Electric GE –0.01% than Ford F +1.99% .
Shares of Rolls-Royce Holdings (ticker: RR.UK) have jumped this year under new Chief Executive Officer Tufan Erginbilgic on hopes he will turn things around after years of underperformance.
Rolls-Royce’s underlying profit rose more than 50% in 2022. The company gets the bulk of its income from servicing aircraft engines, and it says that engine flight hours, a key metric, will continue to increase this year. It expects flight hours to reach as much as 90% of the prepandemic levels of 2019 this year. They were at just 65% of that in 2022.
“Historically, Rolls-Royce has traded at a low valuation to peers,” say analysts led by George Zhao at Bernstein. “The strong 2022 finish and 2023 [guidance] could lead to optimism for investors that the company is on the path to improved performance and improved confidence.”
London-based Rolls-Royce employs 41,875 staff and has a market value of 12.3 billion pounds sterling ($15.1 billion). It develops, manufactures, and services power systems, or engines, for vehicles on land, air, and sea.
Rolls-Royce fetches 27.4 times this year’s expected earnings and is valued at a 60% premium to peers. Shares are up 53% this year, to £1.43. The average target price among 12 analysts surveyed by FactSet is £1.52.
Christophe Menard, an analyst at Deutsche Bank, says shares could rise to £1.60. That’s on the back of a prediction that operating profit will climb by around 19%—and that’s without an expected boost from Erginbilgic’s latest turnaround drive.
Erginbilgic, a dual Turkish-British national, took the helm in January. Rolls-Royce had a difficult pandemic as travel restrictions kept most airplanes grounded. Predecessor Warren East launched a restructuring program in the wake of the Covid-19 downturn, eliminating 9,000 jobs to save on costs.
When Erginbilgic started the job, he said the company was in danger of becoming a “burning platform” and that it was a last chance to win investors back. He pledged to focus on efficiency and optimization, and demanded that the business worry more about profit and loss and less about increasing market share.
Erginbilgic spent more than 20 years at oil and gas giant BP, leading its refining and market division and overseeing the company’s investments in electric-vehicle charging.
To be continued.
Jet flying aircraft powered by Rolls-Royce engines can soar through the sky at 460 mph
https://wahoo-ashland-waverly.com/news/science/jet-flying-aircraft-powered-by-rolls-royce-engines-can-soar-through-the-sky-at-460/video_9d92b1bd-061f-5faa-bdaf-bcd95d43ba5a.html
Zelensky invites Chinese leader to visit Ukraine
https://edition.cnn.com/videos/world/2023/03/29/exp-zelensky-xi-invitation-mclean-03293aseg1-cnni-world.cnn
@Tomaaa,
As I have already mentioned in my previous messages ARESENAL17 was bang on right about the results and you were totally wrong. If you don’t admit to this fact then how do you justify the following message that you sent on 17 Feb.2023 @ 14:51 just 5 days before the results. I quote last part of your message “RR will be red on the day of results and follow Boeing GE and Raytheon route but we shall see on Thursday. “RR will be red on the day of those results IMO.”
FOR YOUR INFORMATION, the results was exactly opposite to your expectations and it was actually a turning point for RR.
You are misleading the board with your constant nonsense and this might have some kind of negative effect on the new investors who may NOT know enough about RR.
@Tomaaa,
This is part of the message that you sent on 27 Mar. 2023 @1:59
****nal hasn’t a clue, anyone who thinks so should not be investing. US set market up Friday close for a trade Monday......
This is part of your another message that you sent on 17 Feb.2023 @ 14:51 just 5 days before the results.
RR will be red on the day of results and follow Boeing GE and Raytheon route but we shall see on Thursday. “RR will be red on the day of those results IMO
Now, by taking the above messages into consideration, you come to the board and claiming to be a master of economic and you know everything about the stock market inside out while A17 has no clue. I leave this judgement to the respectable members of the board to find out the truth!!!
@PSK
I have a great respect for ARESENAL17. I think he is very knowledgeable and has got a very good experience with RR. I remember very well that after Tufan, called RR. a burning platform, the board was filled with darkness and negativity and the members confidence level dropped to zero and some good members of the board sold their shares with loss or a little profit and they left. A17 was the ONLY one in here who kept saying that the results will be good and stay with RR. When the results came out, A17 was absolutely right.
Over the last couple of years, He has been saying that trading RR. may give you an instant profit but keeping the shares and going for long is more profitable. Let’s say those investors who bought RR. at say 70P or 80P back in October time and when the price rose to £1.08 in January, they offloaded the shares thinking that they had made a good profit but they were wrong because the price jumped even further to £1.60 at some stage after the result’s day. So, He has proved to be right again. No wonder why he is good because, he had worked for RR. for 26 years and he knows how the system works.
Central banks and governments have been trying to calm market worries and the following statements were made late Friday:
1- German Chancellor Olaf Scholz defended Deutsche Bank at a news conference on Friday, noting that it had "thoroughly reorganised and modernised its business model" and was "very profitable".
Note: Deutsche Bank recorded annual net income of 5 billion euros ($5.4 billion) in 2022, up 159% from the previous year.
2- Bank of England governor Andrew Bailey also told the BBC that the UK banking system was "safe and sound".
2- President Christine Lagarde told EU leaders the euro area banking sector was resilient due to strong capital, liquidity positions and post-2008 reforms. She also said the ECB toolkit was equipped to provide liquidity to the financial system if needed.
As the results of such statements, all US markets recovered the earlier day loss and closed higher. DOW closed up by 0.4%, S&P 500 up by 0.56% and Nasdaq up by 0.31%. So, there is a good possibility to have a blue day tomorrow.
https://www.bbc.co.uk/news/business-65064378
https://www.cnbc.com/2023/03/24/deutsche-bank-shares-slide-8percent-after-a-sudden-spike-in-default-insurance-costs.html
Deutsche Bank shares slide 8% after sudden spike in the cost of insuring against its default
https://www.cnbc.com/2023/03/24/deutsche-bank-shares-slide-8percent-after-a-sudden-spike-in-default-insurance-costs.html
While, it is fantastic to see the share price rising 15% in 30 hours but this was NOT a surprise to me as I mentioned it to a negative dreamer on my post, dating Friday 17 March 2023 at 18.59 in which I clearly said RR. is down because of the general status of world market and it will have the quickest recovery as soon as the fear for the banking crash is out of the way.
RR. had its turning point on the result’s day and the market price is determined by the performance and the fundamentals and it has NOTHING to do with sentiment. This is just a tip of the iceberg and the share price will double by the end of next year when there is a general election in UK as well as US.
Good luck to all investors.
This BBC article is about 7 hrs old well before the take over and it shows that UBS made a good profit in FY 2022 while CS was loss making.
Credit Suisse reported a loss of 7.3bn Swiss francs ($7.9bn; £6.5bn) in 2022 - its worst year since the financial crisis of 2008 - and has warned it does not expect to be profitable until 2024. UBS, however, made a profit of $7.6bn in 2022.
The Swiss government played a major role to get the deal done and is controlling the CS crisis.
https://www.bbc.co.uk/news/business-65004605
Rolls-Royce closes AI start-up after talks with buyers collapse
https://www.ft.com/content/bc175349-57f2-4473-b3a6-e41ff8974f6b
@ GeckoUK
I am sorry about your lack of understanding about RR. When I say about the change of performance on the results day, I mean the underlying operating profit increased by £238m to £652m and this is forecasted to be £800m to £1B for 2023. The net debt dropped from £5.2B to £3.3B and this is forecasted to drop more to £2.5B for 2023. As you can see the improvement is not just limited to last year and it will continue for this year too. On top of all this, there will be strategic review underway which will be fully announced in the second quarter and the initiative is already taking place as you can see in my next post of the FT article. Also, at the beginning of the week the submarine agreement was announced for which RR. will be benefited. On the budget day, Jeremy Hunt announced that a decision will be made about the SMR by the end of this year. These are the main reasons why the share price increased from 1.09 to 1.60 and the drop is mainly due to a failure of a few banks which has had effect on all the other shares in the stock market. I do not understand how you managed to put a figure of 1.25 to 1.30 as a true reflection while every other brokers have come out with figures a lot higher than yours, Barclays downgraded the RR. about 10 days ago and they still put a conservative figure of 1.45. Tufan made a mistake calling RR. a burning platform and he corrected himself when he gave a statement on the result day. All the credit for the last year performance should be given to Warren East as he was responsible for the financial year 2022.
For your information, I have been investing on the stock market since 1982. I bought shares in every company that Margaret Thatcher privatised starting with BT in 1984. I have had shares in company’s making me 10 times profit like Property Trust and in company’s going bankrupt like Petranol. This is nature of the game and I am used to it.
@ GeckoUK
You must be a genius. Why don’t you give advice to Jeremy Hunt or Janet Yellen as an economic adviser instead of wasting your time in here. You say over of period of 22/2/23 to 9/3/23, RR. had a rise of 51 pence rise over 15 days with no real candles in that time period which is rare. You obviously put a blind eye to the excellent final results of RR. on the 23/02/23 and do not realise the change of the company’s performance which surprised the stock market and the brokers which in turn immediately revised their ratings accordingly. You say that it was only a few weeks ago RR.’s share price was 109p, even if it drops to 130p that’s still a 10% rise over a month which is good return. So, in accordance with your statement RR.’s share price should not rise more than 10% in a month despite of good results and securing new contracts in this period. If we go by your golden rules, which is completely ignoring the performance and the financial standing of the company’s in general, SVP should not have collapsed over a night because it was too quick to fall and the share price of Credit Suisse should have come down 30% over 3 days which is more than 10% over a month.
Learn something NEW, RR. is down because of the general status of world market and it will have the quickest recovery as soon as the fear for the banking crash is out of the way.