اليوم صدرت عدة تقارير عن BAE لكي تطمن حملة اسهمها بعد المخاوف التي اجتاحتهم بسب تاخير الاتفاق على التعديلات في الصفقة السعودية !
المفاوضات بدات قبل سنة ومفروض تنتهي في نهاية العام ولكن الى الان لم يحدث اتفاق رغم التقدم في المفاوضات
السعودية طلبت عدة تغيرات بالعقد ! من اهمها
1-ان يكون التجميع في بريطانيا بدل السعودية وأخيرا وافقت BAE لكن الاختلاف على السعر فالزيادة في السعر من 1-2 مليار جنية استرليني !
2- ان تكون اخر 24 طائرة تحوي الردار الجديد !
3- بناء مجمع للترقية والصيانة بدل التجميع
4- ما زالت المفاوضات على شراء طائرات هوك جديدة مستمرة !
Delays to BAE Systems’ Eurofighter jet deal with Saudi Arabia could hit the defence company’s 2011 earnings, BAE warned in a statement on Wednesday.
Negotiations over the price escalation of the deal, which was initially valued at £4.5bn-£10bn, for 72 Eurofighter Typhoon jet fighters, will continue into 2012, rather than having been completed in 2011 as the company and many analysts had hoped.
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Nevertheless, analysts called the news broadly positive, especially for 2012 and beyond. BAE’s shares, however, fell 7.6p to 287.3p.
Sandy Morris, analyst at Royal Bank of Scotland, said the statement revealed that the Saudis and BAE had agreed various upgrades that could mean £1bn-£2bn of extra value down the line, and that it was natural to expect that Riyadh would need to review carefully that degree of cost escalation.
“It looks to me like there is a lot of good news packaged in that statement,” he said “We would have loved it [the deal’s completion] in 2011, but are not going to love it a lot less in 2012.”
Several other analysts agreed. UBS said it expected the bulk of contracts to be signed in the first half of this year, giving 2012 “a flying start”. The additional training support could mean BAE sells 30-50 more Hawk training aircraft to Saudi Arabia, bringing in £1bn-£1.5bn in extra sales over the coming five years, the bank’s analysts said.
The fact that BAE gave details of the progress of its dealings in Saudi Arabia, where bribery accusations have dogged the company in the past, was a welcome change, analysts said. The initial government-to-government contract was signed between the UK and Saudi Arabia in 2006, and has been so sensitive for BAE that it has revealed little about its progress.
But the statement revealed that the company had agreed some improvements, including that all 72 aircraft should be built in the UK, rather than shifting assembly to Saudi Arabia. Saudi Arabia also wants the final 24 fighters it has agreed to buy to be the most sophisticated version of the Eurofighter, which includes significantly upgraded and expensive radar systems.
“The proposed changes relate to final assembly of the last 48 of the 72 Typhoon aircraft, the creation of a maintenance and upgrade facility in the Kingdom of Saudi Arabia, initial provisioning for subsequent insertion of Tranche 3 capability in respect of the last 24 aircraft of this order and formalisation of price escalation,” the statement said.
BAE had previously told investors that the group expected underlying earnings per share to be broadly similar in 2011 to those for 2010 (restated), but warned that this depended in part on conclusion of its so-called Salam negotiations with Saudi Arabia.
Any hit on earnings from the slip in that deadline will be mitigated by BAE’s recent deal to sell three ocean patrol vessels to Brazil, the company said.
In 2010, BAE said it would write down the value of the three vessels and take a charge of £100m to the 2010 account after a deal to sell them to Trinidad and Tobago went sour.
The fact that the company has now managed to sell them to Brazil for £133m “is expected to largely mitigate the earnings per share impact of the deferred Salam trading in the Group’s 2011 results”, the statement said.
In addition, BAE is expected to gain a benefit to underlying earnings per share of approximately 5.9p from the UK research and development tax credit agreement it announced last month.
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المفاوضات بدات قبل سنة ومفروض تنتهي في نهاية العام ولكن الى الان لم يحدث اتفاق رغم التقدم في المفاوضات
السعودية طلبت عدة تغيرات بالعقد ! من اهمها
1-ان يكون التجميع في بريطانيا بدل السعودية وأخيرا وافقت BAE لكن الاختلاف على السعر فالزيادة في السعر من 1-2 مليار جنية استرليني !
2- ان تكون اخر 24 طائرة تحوي الردار الجديد !
3- بناء مجمع للترقية والصيانة بدل التجميع
4- ما زالت المفاوضات على شراء طائرات هوك جديدة مستمرة !
Delays to BAE Systems’ Eurofighter jet deal with Saudi Arabia could hit the defence company’s 2011 earnings, BAE warned in a statement on Wednesday.
Negotiations over the price escalation of the deal, which was initially valued at £4.5bn-£10bn, for 72 Eurofighter Typhoon jet fighters, will continue into 2012, rather than having been completed in 2011 as the company and many analysts had hoped.
More
ON THIS STORY
BAE wins £133m Brazil navy contract
BAE job cuts run deep among Brough families
BAE warns of uncertainty over US contracts
BAE job cuts will ‘devastate’ local economies
ON THIS TOPIC
Wave energy pioneer courts big engineers
Aerospace groups told to shift to civil sector
Week in review BAE Systems cuts jobs
Bahrain and Saudi offered slots at arms fair
IN AEROSPACE & DEFENCE
Boeing plans to shut Wichita defence facility
Embraer wins $355m US Air Force contract
Qatar Holding becomes top Lagardère investor
Lockheed Martin wins contract worth up to $2bn
Nevertheless, analysts called the news broadly positive, especially for 2012 and beyond. BAE’s shares, however, fell 7.6p to 287.3p.
Sandy Morris, analyst at Royal Bank of Scotland, said the statement revealed that the Saudis and BAE had agreed various upgrades that could mean £1bn-£2bn of extra value down the line, and that it was natural to expect that Riyadh would need to review carefully that degree of cost escalation.
“It looks to me like there is a lot of good news packaged in that statement,” he said “We would have loved it [the deal’s completion] in 2011, but are not going to love it a lot less in 2012.”
Several other analysts agreed. UBS said it expected the bulk of contracts to be signed in the first half of this year, giving 2012 “a flying start”. The additional training support could mean BAE sells 30-50 more Hawk training aircraft to Saudi Arabia, bringing in £1bn-£1.5bn in extra sales over the coming five years, the bank’s analysts said.
The fact that BAE gave details of the progress of its dealings in Saudi Arabia, where bribery accusations have dogged the company in the past, was a welcome change, analysts said. The initial government-to-government contract was signed between the UK and Saudi Arabia in 2006, and has been so sensitive for BAE that it has revealed little about its progress.
But the statement revealed that the company had agreed some improvements, including that all 72 aircraft should be built in the UK, rather than shifting assembly to Saudi Arabia. Saudi Arabia also wants the final 24 fighters it has agreed to buy to be the most sophisticated version of the Eurofighter, which includes significantly upgraded and expensive radar systems.
“The proposed changes relate to final assembly of the last 48 of the 72 Typhoon aircraft, the creation of a maintenance and upgrade facility in the Kingdom of Saudi Arabia, initial provisioning for subsequent insertion of Tranche 3 capability in respect of the last 24 aircraft of this order and formalisation of price escalation,” the statement said.
BAE had previously told investors that the group expected underlying earnings per share to be broadly similar in 2011 to those for 2010 (restated), but warned that this depended in part on conclusion of its so-called Salam negotiations with Saudi Arabia.
Any hit on earnings from the slip in that deadline will be mitigated by BAE’s recent deal to sell three ocean patrol vessels to Brazil, the company said.
In 2010, BAE said it would write down the value of the three vessels and take a charge of £100m to the 2010 account after a deal to sell them to Trinidad and Tobago went sour.
The fact that the company has now managed to sell them to Brazil for £133m “is expected to largely mitigate the earnings per share impact of the deferred Salam trading in the Group’s 2011 results”, the statement said.
In addition, BAE is expected to gain a benefit to underlying earnings per share of approximately 5.9p from the UK research and development tax credit agreement it announced last month.
Copyright The Financial Times Limited 2012. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.
