Rolls-Royce is expected to announce its first dividend in five years this week as the aero engine maker continues its recovery under Tufan Erginbilgic.

Since Covid almost brought the company down it has been one of the stock market’s top performers and its turnaround, buoyed by a return to full health of the aviation sector, has put it in a strong position to return cash to shareholders.

Its stock was the best performer in the FTSE 100 in both 2023 and 2024 surging 207% and 96% respectively and its value has continued to rise this year.

Results this week will reveal £2.3 billion profit and free cashflow at £2.6 billion, giving Rolls-Royce headroom to reinstate the dividend with a payout of 5.2p per share expected, plus some share buybacks. 

BP boss Murray Auchincloss faces a make-or-break meeting with investors on Wednesday that will determine his future and possibly that of the energy company itself.

Shareholders have been unhappy at the cost of the green strategy and Mr Auchincloss has pledged a complete review of its operations after it revealed profits slumped by a third last year. 

The problem is that going green is not making money for investors.

The language around net zero is changing. A US politician has described net zero as sinister and Trump has distanced himself from the Paris Agreement, stating he wants to “drill, baby, drill”.

US investor Elliott Investment Management has taken a stake in BP and is expected to demand sweeping changes. The company is now seen as a possible takeover target for rival Shell.

Diary

Monday 24 February

• EU inflation

Tuesday 25 February

• Full-year results from UNITE
• Ofgem unveils latest energy price cap

Wednesday 26 February

• Full-year results from Aston Martin Lagonda, Hammerson and Morgan Sindall
• BP Capital Markets day
• British Retail Consortium UK shop price index

Thursday 27 February

• Full-year results from Aviva, London Stock Exchange, Macfarlane, Rolls-Royce, Haleon, Hiscox, Taylor Wimpey, WPP, Howden Joinery, Ocado, Drax, Metro Bank, Serco and Shaftesbury Capital

Friday 28 February

• Full-year results from Pearson, IMI, Rightmove, Spectris, St James’s Place, Morgan Advanced Materials and Tritax Big Box