Rolls-Royce in ‘holding pattern’ until Shapps accelerates mini-nukes project
He has since embarked on a shake-up to revive its fortunes, which has included shutting down certain parts of the business.
However, Mr Erginbilgic has also benefited from a bounceback in international travel as Rolls-Royce has been able to charge higher prices for its engines, which has sparked an increase in revenues to £6.95bn.
The company charges customers per hour of flight using its engines.
Hours were up 36pc to 83pc of pre-pandemic levels, and in spite of high inflation, costs have been kept down.
Erginbilgic said: “Better profit and cash generation reflect greater productivity, efficiency, and improved commercial outcomes. We have tightly managed our cost base to offset inflationary cost pressures.”
The company slashed its debt by £500m to £2.8bn, which should help it towards regaining a better credit rating.
It also benefited from an increase in defence orders.
Rolls-Royce provides power and propulsion for the UK’s nuclear-powered submarines and has also been chosen to supply the reactors for Australia’s vessels from the early 2040s.
Its power business, which makes diesel-burning engines for ships and generators, is a key target for improvement for Mr Erginbilgic.
He previously described the division as “grossly mismanaged” but the company said on Thursday that it should offer better profit margins later in the year.