Oil giant BP (BP.) beat second quarter profit expectations after it unveiled $2.82bn compared to forecasts of $2.6bn. That’s four times the amount it reached last year, boosted by higher oil prices.
Investors like the encouraging figures, bidding shares in the group marginally higher in early trade on Tuesday, the stock up 0.7p to 566.2p. More good news for shareholders comes on the income front, with BP increasing its dividend payout for the first time in four years.
Over markets nudge modestly higher early on Tuesday, the FTSE 100 index making mid-single digit gains at 7,707.20. Mid cap and AIM markets also make progress higher.
LITTLE ENCOURAGEMENT AT CENTRICA
Embattled energy supplier Centrica (CNA) stands among the bigger FTSE 100 fallers after reporting lower profits and a new swathe of lost customers from its British Gas arm.
Centrica reported pre-tax profits of £626m for the six months ended 30 June 2018, down from £628m in the same period in the previous year, despite revenues rising from £14.2bn to £15.3bn.
More customers lost remains a long-run trend with Centrica losing 226,000 accounts globally during the period, 140,000 of them British Gas customers in the UK. Centrica also has announced that its group chief financial officer Jeff Bell will be stepping down at the end of October.
Centrica shares are the biggest losers among blue-chips, down more than 5% at 144.8p.
WRONG KIND OF SUN
British travel company Thomas Cook (TCG) has warned that annual profit would come in at the lower end of expectations as the hot summer weather in which most of Europe has been basking will hit late holiday bookings.
Thomas Cook makes a large slice of its profits during the summer as families head to the Mediterranean in search of sunshine, something that so many customers in the UK and across northern Europe are not having to chase this summer.
That said, firm third quarter figures showing underlying profits up and bookings ahead 11% overall offsets the negative vibe, with shares in the company rallying around 5% higher at 101.5p.
Dixons Carphone (DC.) said on Tuesday that about 10m records containing personal data of customers may have been accessed in 2017, when the British electricals and mobile phone retailer became the victim of a major cyber attack.
The shares stay flat at 176.1p.
CHAIRMAN CLOSES ON VEDANTA BUYOUT
Mining group Vedanta Resources (VED) said on Tuesday that chairman Anil Agarwal’s family trust, Volcan Investments, has made a firm offer to buy the rest of the business it does not own in a deal that values the mining conglomerate at $3.07bn.
That sees the share price jump more than 5% to 820p, which values the company at £2.3bn, just a fraction off the implied £2.34bn sterling offer price.
Credit cards and loans business Provident Financial (PFG) sees its shares jump more than 13% to 699.4p as the group unveils a host of boardroom changes, including the appointment of former Aviva (AV.) man Patrick Snowball as chairman.
That news comes alongside interim results that show a 24% drop in first half adjusted pre-tax profit, hurt by disappointing collections results at its home credit business during the second quarter.
Britain’s third-largest builder, Taylor Wimpey (TW.) said on Tuesday the outlook for the UK housing market was stable and kept its full year outlook unchanged, although the shares stay flat at 172p.
JUST EAT GUIDES UP, SHARES DOWN
Just Eat (JE.), locked in an expensive battle with Deliveroo to be the British takeaway platform of choice, raised its full year revenue forecasts on Tuesday and said it would increase its investment plans to meet strong demand.
The stock dips 2% to 830.8p with investors again made nervous about investment plans and their possible impact on profits.
Standard Chartered (STAN) on Tuesday reported a 34% rise in half year pre-tax profit as the Asia-focused bank continued to grow its revenue after years of restructuring. But investors are not getting carried away, the stock falling 3%-plus to 673.5p, with doubts still plentiful about how the business can arrest its long-run declining share price.
Gold prices traded sideways in a narrow range on Tuesday, with investors in a wait-and-see mode ahead of the outcome of central bank monetary policy meetings.
Oil prices fell on Tuesday, with Brent futures set for their biggest monthly loss in two years, on oversupply concerns after a report showed OPEC’s output in July rose to its highest for 2018.
