LONDON (Reuters) – Rolls-Royce’s new chief executive Tufan Erginbilgic said on Thursday the British carmaker was capable of “much more” after reporting annual profit that beat expectations, sending the stock soaring 19% on the London Stock Exchange.

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Tufan Erginbilgic, a former oil giant BP executive who took office two months ago, said major improvements were needed to secure the future of Rolls-Royce, whose engines power the Airbus A350 and Boeing 787 .

After announcing a 57% increase in its underlying operating profit, the company also indicated that its restructuring program was already underway and was advancing at a steady pace.

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“Although our performance has improved in 2022, we are capable of much more,” said Tufan Erginbilgic, promising to improve efficiency and business results.

The strong results and positive outlook helped push Rolls Royce shares up 19% to £1.29, their highest level in more than a year, in early trading on the London Stock Exchange on Thursday.

The company posted operating profit of 652 million pounds (740.08 million euros) in 2022, beating analysts’ forecasts of 478 million pounds.

The resumption of travel has led to an improvement in the performance of civil aeronautics, its largest division.

The outcome of a strategic review will be unveiled in the second half of the year, the company said, planning to provide mid-term goals as the new director seeks to put his stamp on the company.

For 2023, Rolls-Royce expects underlying operating profit of £0.8-1.0 billion and free cash flow of £0.6-0.8 billion, supported by early benefits from restructuring.

Before Thursday’s results, Rolls-Royce’s stock had risen 15% since early January, boosted by the reopening of China’s borders.

(Reporting Paul Sandle and Sarah Young; Lina Golovnya, editing by Kate Entringer)

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