Oil major BP (BP.) reported a 72% jump in profit in the first quarter on Tuesday, driven by higher oil and gas prices and increased production as it pushes ahead with growth plans.
BP's underlying replacement cost profit for the three months to 31 March came in at $2.59bn, well above the $1.514bn a year ago. It is also higher than the $2.11bn posted in the last quarter of 2017.
Fast food delivery service Just Eat (JE.) sees its share price nudge close on 4% higher to 800p in early trade on Tuesday as it posts a reassuring first quarter update. The company is Tuesday’s biggest FTSE 100 gainer.
Particularly pleasing for investors is evidence that it is gaining higher value orders, part of its new growth plans, rather than simply matching restaurants and customers. Orders rose 32% to 51.6m.
British American Tobacco (BATS) and supermarket Morrisons (MRW) head the FTSE 100 loser board, off around 1.5% a piece.
The FTSE 100 makes very modest upward progress, adding around 12 points at 7,522.
PAYOUT SECURITY
Electricity and gas transmission utility National Grid (NG.) has confirmed plans to sell-off the remaining 25% stake it still owns in Quadgas HoldCo, which owns Cadent Gas.
This will generate cash proceeds for the group worth about £1.2bn, shoring up the corporate balance sheet and lifting confidence in future dividends. National Grid shares nudge modestly higher to 846p, although they remain a long way off 2016 and 2017 highs of around £11.00.
British challenger bank Virgin Money (VM.) on Tuesday reported strong credit performance and better-than-expected deposit growth from savers, as a string of business-boosting initiatives start to bear fruit.
Virgin Money reports 10.4% year-on-year growth in its mortgage book and a 7.4% increase in customer savings deposits. Credit cards remains its smallest but fastest growing operation, up 13.9% year-on-year. Virgin Money shares rally close on 3% to 286.6p.
SURPRISE CEO DEPARTURE
Newspapers group Johnston Press (JPR), which publishes The Scotsman and The Yorkshire Post, is to have fresh leadership after chief executive officer (CEO) Ashley Highfield’s surprise resignation.
He is leaving for ‘family reasons’ according to the company’s statement.
Highfield will be replaced by chief finance officer David King as CEO, providing stability that investors apparently welcome judging by the shares 7.5% rally to 8.76p.
British insurer Aviva (AV.) has launched a £600m share buyback programme, as part of a bigger £2bn capital deployment plan. This is aimed at slashing debt and boosting shareholder returns.
Aviva shares respond positively, rising 1.2% to 5365.4p continuing their recent strong run up from 488p lows. The stock hasn’t been this high since last summer.
COMMODITIES EXTEND GAINS
Oil prices extend gains on Tuesday, supported by comments from Israeli Prime Minister Benjamin Netanyahu that he was sure US President Donald Trump would do ‘the right thing’ in reviewing Iran’s nuclear deal with western powers.
But Gold inches lower early on Tuesday, hovering close to a nearly six-week low touched in the previous session, as the US dollar held firm near three and a half month highs, says Reuters.
