Shares in London were down marginally in morning trading. Click here to find out The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
Shares in SDX Energy (SDX) are up this morning, after the North African driller announced a successful production test at its SD-3X well in the South Disouq prospect, Egypt. Though the pay zone was lower than other offset wells for the block, initial tests have exceeded the company’s expectations, and SDX is now “very confident” of achieving daily production of 60 million standard cubic feet at the planned facility for South Disouq. Buy.
Interserve (IRV) has won a £105m contract with Durham University, as part of a consortium to design, build, finance and operate two new college facilities. Work begins shortly and is due to complete in 2020. While it is good the group is continuing to bring in new work, it is still a high-risk proposition in our opinion. Sell.
KEY STORIES:
The fight for North Sea driller Faroe Petroleum (FPM) is officially underway. Yesterday, Faroe alerted its shareholders to a request from DNO - which acquired a 28 per cent stake in Faroe four months ago - to appoint two “independent directors”, including executive chairman Bijan Mossavar-Rahmani, to its board. Faroe believes shareholders should reject the request, arguing DNO is a competitor on the Norwegian Continental Shelf, and that the move is “wholly self-serving” and “part of an undisclosed strategy…to try and gain control of Faroe's business without making an offer to all shareholders at an appropriate premium”.
Shares in Global Ports Holding (GPH) are up nearly 8 per cent in early trading after the cruise port operator announced a 13.7 per cent increase in revenue to $56.6m during the first half, with passenger numbers up 6.2 per cent to 1.6m. A loss for the period of $3.6m, compared to $6.7m loss last year, was mainly due to $16m of amortisation expense in relation to port operation rights. During the period the group signed new agreements to operate ports in Havana and Zadar Gazenica, and began a partnership with Dreamlines, an online travel agent for cruises. Management expect full year full year results to be towards the upper end of expectations.
Royal Bank of Scotland (RBS) has confirmed chief financial officer Ewen Stevenson will step down from his role on 30 September. Deputy chief financial officer Katie Murray will be appointed to the job on an interim basis from then.
