Member Info for MJK1

Now the Turkish deal is announced the only others I’ve heard mentioned in the last 2 weeks are the Thai and Emirates orders.

What are you talking about? Typhoons have 2x EJ200 engines produced by the Eurojet consortium of which RR owns 33%.

If the volcano erupts, the aviation industry won’t be impacted like it was back in 2010 because a particle density limit of 4mg/m3 has been introduced since then. Back in 2010 there was no safe limit so the planes were grounded. Barring flying through a visible cloud close to an erupting volcano, the planes will keep flying.

I use the IG share trading app and there’s no 3p dip at 10:10 this morning on there.

On an equal Mcap basis a post rights share price of £7 is equivalent to a pre rights share price of over £30. That’s more than double what it ever reached back at the peak at the start of 2014. I’d say a £7 share in 15 months is extremely optimistic!

Tufan obviously stuck to his guns with regards to pricing which can only be good for RR’s profitability going forward. Tim Clark is too shrewd to put all his eggs in one basket. The 777X with its GE9X engines is unproven in the hot and sandy environment Emirates operate in. 2500 cycles is over 3 years on the wing at a flight per day and 2 cycles per flight. That’s a big ask for a brand new unproven engine.

There are 2 possible calculations, the first equating market capital you just multiply today’s share price by 4.33. The other equates share prices for LTH who fully participated in the RI. For that Pre RI share price (£) = ((Post RI share price (£) x 13) - £3.20) / 3.

Yesterday Ethiopian Airlines announced an order for 11 Boeing 787’s at the Dubai Airshow. Anyone know which engine they’ve specified, Trent 1000 or GEnx?

It’s an interesting discussion and one I’ve thought about but can’t find any data on the internet. I think £1000 per hour per engine sounds too high. If the fleet is doing 292000 hours per week that’s about 15 million per year which would bring in a revenue of £15 billion per year. This is roughly the total revenue of RR so I think too high. Anyone have further insight?

Sinpants, Airbus were delivering 7 A350’s per month back in June. Then there is the A330NEO (Trent 7000) and Boeing 787 (Trent 1000). This can quite clearly account for a current production rate of 6 engines per week including spares.

****y, so you are now saying the production numbers are more than 6 per week currently and 10 per week planned for next year? bizarre, when you first came back at me, i think everyone would have assumed you were implying my numbers were an over estimate.

shareflyer, believe me, rough production numbers are known throughout the company, no matter which department you work in. i speak from first hand experience, i worked there for over 30 years.

****, oh dear, has the newcastle result upset you! 😂. any chance you can correct my inc statements then?

I was speaking to an employee today who works on the engine pass-off test beds. They are currently delivering 6 Trent engines per week with plans to move to 10 per week next year. Engine flight hours should be increasing massively going forward. All going in the right direction.

For anyone that fully participated in the rights issue, the current share price of £2.11 is equivalent to a pre-rights price of £8.08, so it isn’t correct to say a long term holder who bought at £5 is well under.

cd, the pre-Covid market cap was about 40% higher than it is currently which would have put it at about £2.20 for post RI prices. A long way to go yet hopefully.

Sounds like good news then mrJimV?

I work for a supplier to RR Derby and we’ve also heard there was going to be some big announcement today from the CEO.

First thing he needs to do is get them back in the office. Engineers working 1 day a week in the office is ridiculous and productivity is suffering massively.

Sophie, does it not say they’ve got £2 billion in cash so net debt is only £2 billion. All looks promising to me.

appears to be this:-

“Loss before taxation of £(1.8)bn included £(2.1)bn of net financing costs, of which £(1.8)bn were mark-to-market on derivative contracts and in year foreign exchange losses, and £(0.2)bn net interest payable. It also included a £76m gain on the disposal of AirTanker Holdings.”

Can anyone explain what this £2.1 billion loss on financing costs actually is and is it a one off or expected to be ongoing?