The energy arm of Rolls-Royce has committed to a £1bn share buyback after the closing of last month’s sale of its energy gas turbine and compressor business to Siemens.
The transaction is expected to be completed by the end of 2014.
CEO of Rolls-Royce, John Rishton said: “As no material acquisitions are planned, and reflecting the strength of our balance sheet, we will return the proceeds of the Energy sale to our shareholders.”
The news comes as the firm conduct an investor briefing to provide an update on group strategy, capital allocation, financial guidance framework and accounting.
Earlier this month Emirates withdrew a 70-aircraft order with Airbus, which Rolls-Royce warned would result in a £2.6bn gap in its order books because it had planned to supply the engines for the A350 fleet.
Today’s briefing is set to discuss group guidance for 2014 and 2015, as well as, ratify group capital expenditure is approaching 4% of underlying revenue in the next three to five years, down on last year’s figure of 4.9%
The meeting will also confirm expectations for distribution of its high bypass turbofan Trent engines to surpass 4,000 by 2023.
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The deadline for entries to the 2014 Manufacturer of the Year Awards is July 31.