Rolls-Royce lifted after Saudi makes two major orders worth £1.4bn

Rolls-Royce received a much needed boost yesterday following its recent profits warning with news of two major orders worth a combined £1.4billion.

The Derby-based aero-engine maker said it was selling Trent 700 engines for 20 Airbus A330 regional aircraft operated by SAUDIA, Saudi Arabia’s national airline.

Leasing company International Air Finance Corporation, which owns the aeroplanes, is buying the engines for £600million. Rolls-Royce (up 3p at 783p) has also signed a long-term servicing contract worth £840million directly with SAUDIA.

Saudi deal: Rolls-Royce received a boost after recently posting a profit warning

It said the Trent 700 was now the clear market leader on the A330 with more than 60 per cent of new orders over the last three years.

Eric Schulz, the firm’s president for civil large engines, welcomed ‘our customer’s confidence in the Trent 700 as delivering unrivalled reliability for Middle East operations’.

Brenda Kelly, head analyst at London Capital Group, said: ‘Despite the latest contract wins, a large gap will still need to be filled if we are to negate the recent stock turmoil post the recent profit warning.’

The company blamed a number of factors including reduced demand for business jets for the profit warning.