Equities are steady in early trading as investors digest a reduction in intetest rates in China late last week. Click here for the Trader Nicole Elliott’s latest views.
IC TIP UPDATES:
BHP Billiton (BLT) has made further steps towards demerging a vast swath of assets into a separate company with the appointment of two senior directors-elect for the new company. Meanwhile it has also confirmed that BHP shareholders will all receive shares in the new entity and that the existing BHP business will retain its dividend rather than rebasing it, implying a higher payout. The demerger will likely happen in the middle of next year. We keep our buy rating.
Ophir Energy (OPHR) has confirmed agreement with the board of Salamander Energy (SMDR) for a recommended all share takeover which values Salamander at 115.9p a share or £314m. We keep our buy on Ophir.
Sustainable wood specialist Accsys Technologies (AXS) enjoyed a 38 per cent uplift in revenues in the six months to September with gross profits up 46 per cent to €5m and underlying losses reduced from €2.5m to €1.9m. We maintain our buy recommendation.
KEY STORIES:
Friends Life (FLG) has announced the suspension of its share buy back programme while it remains in talks with Aviva (AV.) after agreeing the key terms on a potential combination of the two businesses. In principle, a deal has been agreed which would value Friends Life at 398.9p a share.
Oil services specialist Petrofac (PFC) has said that full year profits are likely to be towards the lower end of expectations at around $580m-$600m but that it has brought in $10bn in new business this year, taking the order book to $21bn. But the lower oil price environment and issues on certain contracts mean 2015 expectations are now for a profit around the $500m level.
Food producer Cranswick (CWK) posted a small reduction in revenues for the six months to September but better margins meant underlying profits rose by 11.4 per cent to £25.8m.
OTHER COMPANY NEWS:
Eland Oil & Gas (ELA) reports average gross production of 3,500 barrels of oil per day from the Opuama Field in Nigeria with average uptime of the field improving to 90 per cent.
Avingtans (AVG) has warned on full year profits after being hit by the restructuring of a client in the aerospace business and the falling oil price in its energy business.
Petropavlovsk (POG), the Russian gold miner, has agreed to sell its alluvial gold business in the Amur region for around $21.8m.
