Tullow Oil Still a Sell Despite Progress, Panmure Says
Tullow Oil is moving forward, but there is more to do, says
Panmure Gordon after the Africa-focused oil producer reported a
first-half profit and narrowed 2021 production guidance toward the
upper end of its range. While early signs of progress from its new
strategy are encouraging, FTSE 250-listed Tullow remains a long way
from restoring the dividend and offering the growth potential
investors typically seek from exploration and production companies,
Panmure says. "The company is fully valued at current levels and
there are numerous better alternatives for investors seeking
exposure to the E&P sector," Panmure analyst Ashley Kelty says,
increasing the brokerage's target price to 45 pence from 44 pence,
but reiterating its sell recommendation. Shares rise 7% to 48
pence.
Companies News:
Pharos Energy Posts Net Profit, Decline in Revenue
Pharos Energy PLC said Wednesday that revenue declined in the
first half but the company swung to a profit after an impairment
charge hit earnings in the same period of the previous year.
---
AssetCo Appoints Campbell Fleming as CEO
AssetCo PLC said Wednesday that Campbell Fleming will be the
company's chief executive officer from Oct. 2.
---
Trackwise Designs Swung to Pretax Loss in 1H
Trackwise Designs PLC said Wednesday that it swung to a pretax
loss in the first half of the year, although revenue rose.
---
Trinity E&P Swung to 1H Net Profit as Oil Prices Rose
Trinity Exploration & Production PLC on Wednesday reported a
swing to net profit for the first half, as its underlying
performance was boosted by stronger oil prices.
---
Anpario 1H Pretax Profit Rose But Logistics Costs Hit Gross
Margin
Anpario PLC said Wednesday that its pretax profit rose in the
first half of 2021 but revenue was largely flat and logistics costs
hit its gross margins.
---
Panoply Shares Rise as Five-Month Performance Tops
Expectations
Shares in Panoply Holdings PLC rose sharply on Wednesday after
it said business was significantly ahead of expectations for the
first five months of its fiscal year and raised its guidance for
the year.
---
Restore Says 3Q Marked By Positive Trading Momentum
Restore PLC has backed its growth target for the year after
positive trading momentum so far in the third quarter.
---
Actual Experience Appoints Kirsten English as Chairwoman
Actual Experience PLC said Wednesday that Kirsten English will
replace Chairman Stephen Davidson, who will retire after the
company's next annual general meeting in March.
---
Fintel Signs Fintech, Distribution Agreement With Tatton; Sells
Verbatim for GBP5.8 Mln
Fintel PLC said Wednesday that it has signed a fintech and
distribution agreement with Tatton Asset Management PLC, which
includes the sale of Verbatim, its fund management business, for a
cash consideration of up to 5.8 million pounds ($8 million).
---
Renewables Infrastructure Group to Raise GBP200 Mln
Renewables Infrastructure Group Ltd. said on Wednesday that it
will raise 200 million pounds ($276.9 million) by issuing about
161.3 million ordinary shares.
---
TinyBuild Posts Lower 1H Pretax Profit
Videogames company tinyBuild Inc. said Wednesday that pretax
profit for the first half of the year fell on one-off costs, as it
acquired Russian development studio Bad Pixel.
---
Science in Sport Booked 1H Pretax Loss; 2H Started With Strong
Sales
Science in Sport PLC said Wednesday that it booked a pretax loss
in the first six months of 2021, while sales were dynamic in July
and August.
---
HgCapital Trust Agrees to Sell Achilles to Bridgepoint
HgCapital Trust PLC said Wednesday that it has agreed to sell
its supply-chain risk and performance management company Achilles
to Bridgepoint Group PLC for an undisclosed sum.
Market Talk:
Fevertree's Margin Outlook to Cause 2022 Consensus
Downgrades
0946 GMT - Fevertree's first-half results were unsurprising but
its relatively cautious stance on margin improvement in 2022 is
likely to bring down consensus forecasts, Citi says. The drinks
manufacturer said it expects a marginal improvement in its Ebitda
margin. Citi says consensus forecasts currently assume a
140-basis-point improvement, so the guidance is set to cause a
low-single-digit cut to consensus earnings per share forecasts. "We
don't see the results today as a catalyst for the shares'
performance to improve near-term. We continue to think that further
share price outperformance relies on Fevertree delivering ahead of
the sales guidance," Citi says.
---
Fevertree 1H Profit Rises, But Costs, Supply Woes Weigh
0941 GMT - Fevertree Drinks gains 1% after the mixer-maker
reported higher first-half pretax profit, though rising costs and
supply issues weighed. Fevertree sales have benefited from the
re-opening of bars and continued strong sales in shops and
supermarkets, Hargreaves Lansdown says. "However, like many
businesses, Fevertree has had to contend with rising logistics
costs--especially in shipping product across the Atlantic," HL
analyst Nicholas Hyett says. "With input costs also rising and
heavy-goods vehicle shortages creating some bottlenecks, disruption
could get worse before it gets better. New bottling partners across
the pond will help reduce the headwind next year, but in the short
term, it's weighing on margins and means profit growth has been
slower."
---
BOE Likely to Maintain Stimulus, Supporting Corporate Profits,
Stocks
The Bank of England is unlikely to speed up scaling back
stimulus, despite a steep increase in consumer prices in August,
which should be supportive for the rebound of corporate profits and
the equity market, says Ben Laidler, global markets strategist at
multi-asset investment platform eToro. U.K. annual CPI inflation
surged to a 9-year high of 3.2% in August, marking the biggest
monthly jump in the annual rate on record. Yet Laidler expects the
Bank of England to remove policy stimulus slowly as bank officials
remain keen to support the economic recovery. "We see this stimulus
staying for an extended period, whilst growth uncertainties remain
high, and much of the inflation acceleration one-off," he says.
---
Tullow Oil Makes Progress, But Debt-Cutting Stays Key
0920 GMT - Tullow Oil gains 6% after the Africa-focused oil
producer reported a first-half profit and narrowed 2021 production
guidance toward the upper end of its range. Tullow has made good
progress in 1H to stabilize the business by completing its debt
refinancing, while also improving operational performance from its
key assets in Ghana, Citigroup says. Still, balance-sheet gearing
remains high, with debt reduction still a key priority. "Tullow's
new strategy looks the right approach, targeting lower-risk
opportunities to enhance value from its West African portfolio.
However, the FY21 cashflow guidance, despite the higher macro
environment, highlights the continued challenge to balance
re-investment in its core Ghana assets and de-leverage the balance
sheet," Citi says.
---
Trustpilot's 1H Likely to Prompt Revenue Forecast Upgrades
0904 GMT - Trustpilot's first-half results were solid and
Goodbody said it is likely to upgrade its 2021 revenue forecasts by
4.5% after the company guided for its 2021 performance to mirror 1H
constant currency growth. After a subdued 2020, results for the
consumer-reviews platform reflect the business's increased momentum
and reacceleration toward historic growth rates, Goodbody says. Its
improved retention rates are also a sign of the quality of its
product offering, the Irish brokerage says. "Given a strong market
position of the brand both in the U.K. and growing demand for its
platform as penetration rates grow globally, we see Trustpilot as a
strong play in this space," the broker says. Goodbody rates the
stock at a buy.
---
Strong UK Inflation, Jobs Data Add Pressure on BOE to Cut
Monetary Support
0824 GMT - Consumer prices in the U.K. grew at their fastest
pace in almost a decade in August, adding more pressure to the Bank
of England to scale back pandemic-era monetary policy support, says
Shane O'Neill, head of interest rates for Validus Risk Management.
Commenting on annual CPI inflation accelerating 3.2% in August, he
says inflation and Tuesday's solid jobs data "will give some
support to those members of the Monetary Policy Committee who want
to starting reducing stimulus sooner rather than later."
Yesterday's labor data showed the number of payroll employees back
above pre-pandemic levels.
---
Jump in UK Inflation Unlikely to Sway Next Week's BOE
Decision
0814 GMT - The surge in consumer prices in the U.K. in August
was not unexpected and is unlikely to trigger a monetary policy
reaction at the Bank of England's policy meeting next week, says
Derrick Dunne, chief executive officer of YOU Asset Management.
"Given that the spike was not unexpected, inflation itself is
unlikely to spur a shift in monetary policy this month," he says,
adding that the next week's meeting will more likely focus on
Tuesday's employment data. Still "the current rate of quantitative
easing can't last forever, and savers and investors should continue
to anticipate a rise in interest rates at some point next year, if
not before." Annual CPI inflation accelerated to 3.2% in August,
beating expectations in a WSJ poll.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 15, 2021 06:24 ET (10:24 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024