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BP, Carnival and Centrica

A selection of recent updates from the IC Companies writers
March 23, 2020

The oil majors staged a minor rally after Donald Trump attempted to intervene in the ongoing production dispute. But with the price of crude bobbing around the $20/bbl mark, the onus is on capital preservation. BP (BP.) has announced that it will cut spending by a quarter this year, to $12bn (£9.6bn), but the rationalisation measures don’t stop there. Click here to get the lowdown from Alex Hamer.

The cruise ship industry was one of the first segments of the economy to feel the chill from the Covid-19 and matters have gone from bad to worse. To stave off a cash crisis, Carnival (CCL) has increased the size of its bond sale and reduced the number of shares it will offer. Click here to find out the details from Alex Janiaud.

According to the IC’s Nilushi Karunaratne, “Centrica (CNA) can’t seem to catch a break”. Quite so, but the utility isn’t alone in the face of the viral outbreak and the consequent disruption to the wider economy. The group has foreshadowed working capital outflows and delinquent debt as customers defer payments. Click here to read Nilushi’s take on Centrica’s latest update.  

Prices for many key commodities have pulled back sharply, but Glencore (GLEN) has always insisted that its dual trading and mining activities afford it a degree of insulation when markets are in decline. Click here to get Alex Hamer’s thoughts on the group’s near-term income prospects.  

Property landlords are also feeling the pinch as aggregate demand and consumer confidence plummet. Emma Powell has provided a timely update in how the retail property constituents are faring. Click here to get Emma’s appraisal of performance.