Airbus keeps outlook as Q1 core earnings rise

The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. (File/Regis Duvignau/Reuters)
Updated 30 April 2019

Airbus keeps outlook as Q1 core earnings rise

  • Quarterly revenues rose 24 percent from a year ago to 12.55 billion euros ($14 billion), while adjusted operating profit jumped to 549 million euros from 14 million last year
  • Airbus suffered a cash outflow of 4.3 billion euros in the quarter as it built inventories but the company is expected to see that reverse course later in the year

PARIS: European planemaker Airbus stuck to its full-year financial targets after reporting slightly higher-than-expected core first-quarter profits, overshadowed by a heavy drain on cash as it stocked parts to ease industrial bottlenecks.
Quarterly revenues rose 24 percent from a year ago to 12.55 billion euros ($14 billion), while adjusted operating profit jumped to 549 million euros from 14 million last year, driven by higher commercial jet deliveries.
A Reuters poll had given a mean forecast for revenues of 12.99 billion euros and an adjusted operating profit of 520 million.
Higher deliveries of A320neo jets, which sell at a premium to earlier models, and progress in reducing costs on the larger A350 contributed to the sharp rise in profits. But Airbus still faces snags in producing a longer-range A321 with new cabins.
“Airbus is working to improve execution in its internal industrial systems and monitoring engine performance,” it said in a statement. Engine delays have also weighed on deliveries.
Excluding adjustments, earnings fell 9 percent partly as a result of a row over Germany’s suspension of export licenses to Saudi Arabia and costs for the A380 superjumbo, which Airbus has said it plans to shut down in 2021 due to poor sales.
Airbus suffered a cash outflow of 4.3 billion euros in the quarter as it built inventories but the company is expected to see that reverse course later in the year.
It reaffirmed 2019 targets including positive free cashflow of 4 billion euros and a 15 percent rise in operating profit.
Last week, Airbus’ rival Boeing abandoned its 2019 financial outlook, halted share buybacks and said it had lowered production due to the grounding of its 737 MAX jet after two crashes had cost it at least $1 billion so far.


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.