London - Britain's Rolls-Royce said it planned to return 1 billion pounds ($1.7 billion) to investors through a share buyback, passing on the proceeds from the sale of its energy turbine business which was announced in May.

“As no material acquisitions are planned, and reflecting the strength of our balance sheet, we will return the proceeds of the Energy sale to our shareholders,” Chief Executive John Rishton said in a statement on Thursday.

The company also confirmed it was on track to meet guidance for this year and next.

Rolls-Royce, whose primary business is making engines for aircraft, in May agreed to sell its gas turbine unit to German conglomerate Siemens AG for 785 million pounds. The deal is expected to complete by the end of 2014. - Reuters