FTSE 100: 7105.72 24.00 0.34%
FTSE 250: 23289.65 80.98 0.35%
FTSE AIM: 1258.69 1.08 0.09%
The FTSE 100 rose to a new three-week high Tuesday, largely
thanks to a solid second-quarter performance from BP PLC and the
banking sector's decent earning numbers, this time from Standard
Chartered PLC, says Michael Hewson, chief market analyst at CMC
Markets. The FTSE 250 has also been buoyed by good results, this
time thanks to Direct Line Insurance Group PLC, whose first-half
pretax profit rose on lower motor vehicle claims. Energy major BP's
shares were boosted after the company raised its dividend and
announced a share buyback. But while this is all well and good, it
is heavily dependent on OPEC+ keeping prices at their present
levels, which given current volatility is by no means easy, Mr.
Genel Energy Reports 1H Profit, Raises Dividend
Genel Energy PLC on Tuesday reported a profit for the first half
of the year and raised the interim dividend.
A.G. Barr Expects 1H Revenue Increase; Backs FY 2022
A.G. Barr PLC said Tuesday that it expects revenue for the first
half of fiscal 2022 to be around 18% ahead of the prior year's, and
backed its guidance for the year.
Bank of Ireland's 1H Operating Profit Rose Materially
Bank of Ireland Group PLC on Tuesday said operating profit
increased significantly for the first half of the year, surpassing
Rockhopper Exploration Yet to Receive News on Italian
Rockhopper Exploration PLC on Tuesday said that it is yet to
receive news regarding the outcome of its arbitration against the
Cambridge Cognition 1H Revenue Rose 50%, on Track for Full-Year
Cambridge Cognition Holdings PLC said Tuesday that it achieved
significant growth in revenue in the first half and that it remains
on track to be profitable in 2021.
Flowtech Fluidpower 1H Revenue Rose; Sees 2021 in Line With
Flowtech Fluidpower PLC said Tuesday that revenue rose for the
first half, and that it expects its results for the year to be in
line with market expectations.
Rotork 1H Pretax Profit Rises, Declares Dividend; CEO to Step
Down Next Year
Rotork PLC on Tuesday reported an 8.2% rise in pretax profit for
the first half of the year on revenue that was also slightly
higher, returned to the dividend list and reinstated its full-year
Filtronic Achieved Profitability in FY 2021
Filtronic PLC on Tuesday reported that it swung to a profit in
the year ended May 31.
Merit Group Says FY 2021 Pretax Loss Was Wider Than Previously
Merit Group PLC said Tuesday that its pretax loss for the year
ended March 31 was 3.1 million pounds ($4.3 million), rather than
GBP2.9 million as previously reported.
Clinigen Group Appoints Elmar Schnee as Chairman Starting
Clinigen Group PLC said Tuesday that it has appointed Elmar
Schnee as its new chairman, replacing Peter Allen who will step
down at the annual general meeting in November.
NWF Group FY 2021 Pretax Profit Fell; Current Performance in
Line With Views
NWF Group PLC said Tuesday that fiscal 2021 pretax profit fell
on lower revenue, but that its performance to date in fiscal 2022
has been in line with the board's expectations.
Trinity Exploration Says Chairman Bruce Dingwall Has Been
Trinity Exploration & Production PLC said Tuesday that it
has appointed nondirector Nicholas Clayton as interim nonexecutive
chairman as Executive Chairman Bruce Dingwall has been recently
hospitalized due to a serious health incident.
Aferian Posts Improved 1H Profit; Will Buy Remaining 8% Stake in
Aferian PLC said Tuesday that its profit improved in the first
half of the fiscal year, and that it will acquire the remaining 8%
minority interest in 24i Unit Media BV.
Gopher Investments Disappointed With Playtech Decision to Sell
Finalto to Consortium
Gopher Investments said Tuesday that it is disappointed with
Playtech PLC's board regarding the latter's decision to take a
Barinboim Group-led consortium offer to buy financial-trading arm
Finalto and not change its recommendation on the offer.
Restore Reiterates Marlowe Takeover Bid Rejection, Notes
Restore PLC said Tuesday that it has reiterated its unanimous
rejection of Marlowe PLC's unsolicited 743 million pounds ($1.03
billion) takeover bid and that it has received strong support from
Mine Worker Strikes Could Offset Copper Demand Weakness
0954 GMT - BHP's Escondida workers have voted to strike and
there is risk of similar action at Codelco's Andina and JX Nippon's
Caserones as well, Jefferies says. These mines in Chile account for
7% of global copper mine supply, Jefferies says. The disruptions
could offset copper demand weakness in the very near term and limit
downside to prices before the market strengthens going into the end
of the year, the bank says. "Copper mining equities have begun to
recover from the recent pullback but are not yet reflecting further
significant increases to the copper price, in our view," Jefferies
says. The bank has a buy rating on Freeport-McMoRan, First Quantum
Minerals and Glencore.
BP's Dividend Raise Comes Earlier Than Expected
0932 GMT - BP has increased its quarterly dividend by 4%, an
earlier-than-expected change in policy, Barclays says. In addition,
better surplus free cash flow has translated into a step-up in
buybacks, which reflects strong performance from the underlying
business, the British bank says. "We expect a positive reaction to
BP's results and enhanced shareholder returns," Barclays says.
Shares in the oil company rise 4.5%. Moreover, Barclays notes that
BP's strategy is progressing well, as the company has built a
21-gigawatt renewable pipeline since it announced its new strategy,
and four major projects began production in the second quarter.
Standard Chartered's Share Buyback Bodes Well
0923 GMT - Standard Chartered gains 1.6% after the
emerging-market bank said second-quarter profit jumped 69% as its
recovery continued to pick up on easing credit impairments. The
bank has followed the trend set by more U.K.-focused rivals, with
big bad loan releases boosting the bottom line even as lower
interest rates squeeze revenues, Hargreaves Lansdown says.
"However, unlike its U.K. counterparts, a majority of overall
revenue comes from non-interest rate-related fees and commissions
and that should stand it in better stead once the bumper period at
the start of the pandemic is behind us," HL analyst Nicholas Hyett
says, adding that the bank's decision to buy back $250 million of
shares is a vote of confidence in its revenue outlook.
Fresnillo 1H Matched Hopes, But Costs Weigh on Outlook
0912 GMT - Fresnillo's first-half results broadly matched
expectations, but the Mexican silver miner's costs are a risk,
according to Citigroup. Pretax earnings before interest,
depreciation and amortization of $747 million compared to
company-compiled consensus at $753 million, though the key trend
from the interim results was cost pressure, Citi says. Adjusted
costs rose 20% year-on-year compared to company guidance for a 10%
full-year increase, the investment bank says. "Earnings momentum
for Fresnillo is likely to sustain in 2H, with commodity prices
staying high, while production is expected to further ramp up.
However, costs remain a key risk," Citi analysts say. Shares rise
BP's Dividend, Buyback Boost Is Higher Than Expected
0851 GMT - BP's shareholder distribution boost is higher than
expected, Jefferies says, noting the quarterly dividend increase
and $1.4 billion share buyback for 3Q. The oil-and-gas company also
plans a $1 billion quarterly buyback and 4% annual dividend growth
through 2025, which is at the high end of expectations, Jefferies
says. The updated remuneration implies a 10% yield and brings BP
into the top end of the sector range, the bank says. Jefferies says
it continues to see greater upside potential in Shell. Shares rise
3.0% to 298.5 pence.
BP Investors Cheer Higher-Than-Expected Returns, Profit
0851 GMT - Shares in BP top the FTSE 100 risers, up 3% after the
oil major's second-quarter results topped expectations and it
increased shareholder returns. RBC Capital Markets described the
underlying results as decent, with adjusted net income of $2.8
billion beating market consensus of $2.15bn, driven by oil
production and operations and lower-than-expected tax. RBC also
highlights BP's plans to buy back $1.4bn in shares in the next
quarter, versus expectations of between $500-$1bn, and to raise its
dividend. "With many of its peers announcing higher shareholder
distributions, BP looks to be addressing one of the concerns with
its investment case--lack of dividend-per-share growth," RBC
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
August 03, 2021 12:23 ET (16:23 GMT)
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