Rolls-Royce, the provider of one of the best aerospace propulsion engines, is reviewing their balance sheets amid the COVID 19 crisis. They are looking for options to improve the position of their balance sheets and recover from the COVID 19 situation.
The company mentioned that they are in the early stages of reviewing a range of potential options and no decisions have been made yet.
Rolls Royce design and manufacture engines for planes like Boeing 787, Airbus 350 and various other civil air crafts. Their business was hit during the sharp reduction of air travel caused due to the pandemic. Since the beginning of 2020, they have faced a loss of 57% of their share value.
The liquidity and financial position of the company remains the same. The reports from Bloomberg states that the company is considering options like raising their equity and disposals.
The company has recently secured agreements with the U.S Navy for ship engines, propulsion components, and services which are valued up to $115.6 million. They announced this in their company blog on June 24, 2020. They are also working towards engines powered by sustainable energy fuels. Some of the projects related to this include H3PS(High power, High scalability Highbrid power train) and MTU Gasengines for ships.
In May, the company had planned to cut down 1/6th of its workforce which makes up to 9000 employees from a global workforce of 52,000. They expect to overcome the crisis by fitting into the smaller market.
Their annual revenue was 15 million pounds and half of it is made from the Civil Aerospace business. Most of the employees among this 9000 belong to this department. Standard&Poor, the rating agency had cut down the ratings of Rolls-Royce owing to the low travel rates and ban on air travel due to the pandemic.