(Boursier.com) – Even lower! Rolls Royce still plunges 10% in London, bringing its drop since January 1 to nearly 85%. The title is weighed down this Thursday by the announcement of an upcoming capital increase of 2 billion pounds as well as the obtaining of several loans while the group remains undermined by the unprecedented crisis which shakes the aeronautical industry and the virtual shutdown of global air traffic.
The engine manufacturer, which powers the Boeing 787s and Airbus 350s, has consumed four billion pounds of cash this year, said it expects to return to positive cash flow in the second half of 2021 and is targeting 750 million pounds. free cash flow in 2022.
"The capital increase announced today strengthens our resilience to navigate the current uncertain operating environment," said Rolls-Royce Managing Director Warren East. "This is a comprehensive plan that will avoid any liquidity issue during this crisis," he told reporters. "We wanted this plan to provide sufficient leeway, even in the worst-case scenario."
Britain's export credit agency UK Export Finance has said it is ready to support an extension of its guarantee to 80% of the current five-year two billion pound loan to Rolls-Royce. The agency is also ready to support an increase in the loan to an amount of up to £ 1 billion. Rolls-Royce has also announced that it has commitments for a new two-year credit facility in the amount of one billion pounds.
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