BP Shareholders Expected to Receive 50% of Market Cap in Distributions

BP Shareholders Expected to Receive 50% of Market Cap in Distributions

1020 GMT - BP is likely to generate significant free cash flow in the coming years, and investors could receive more than 50% of the company's current market capitalization back over the next five years, RBC Capital Markets says as it upgrades its rating on the British energy major's stock to outperform from sector perform. The bank assumes that oil prices will average $101 in 2022 and $98 in 2023. RBC says that the upgrade isn't a nod to BP's wider strategy, which was announced when oil prices were at $40. "On a higher commodity deck, life gets a bit easier," the bank says. Brent crude contracts for delivery in April are trading at $100 a barrel, down from highs of $105 on Thursday. ([e-mail])

 
Companies News: 

Evraz Confirms Potential Exposure to Sanctions Against Russia

Evraz PLC said Friday that it is exposed to the effects of policies adopted by the Russian government, and that the worsening situation in Ukraine increases the risk of sanctions which could affect its operations.

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Rightmove 2021 Profit Rebounded to Above Pre-Pandemic Levels Amid Housing Boom

Rightmove PLC said Friday that pretax profit for 2021 rose above pre-pandemic levels on the back a housing boom driving up revenue per advertiser.

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Frasers Group Acquires Troubled Studio Retail's Operating Business for GBP26.8 Mln

Frasers Group PLC said Friday it has acquired digital retailer Studio Retail Group PLC's main operating subsidiary Studio Retail Ltd. and certain other assets for a consideration of 26.8 million pounds ($35.9 million).

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Pearson 2021 Pretax Profit Fell; To Buy Back Shares of Up to GBP350 Mln

Pearson PLC said Friday that pretax profit fell in 2021, raised its dividend payout and said it planned to buy back shares.

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IAG Expects 1Q Operating Loss, Return to 2Q Profit After 2021 Net Loss Narrowed

International Consolidated Airlines Group SA said Friday that it expects a significant operating loss in the first quarter before a return to profit in the second quarter, as it reported a narrowed net loss for 2021.

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Babcock International's Performance in 10 Months to Jan. 31 Was in Line With Views

Babcock International Group PLC said Friday that its performance in the first 10 months to Jan. 31 was in line with expectations, and that its outlook for fiscal 2022 was unchanged.

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Lukoil Buys 50% Stake in Area 4 Oil Project Offshore Mexico

Lukoil PJSC said Friday that it has completed the acquisition of a 50% stake in the Area 4 oil project offshore Mexico for $435 million plus expenditures of around $250 million.

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Alliance Trust 2021 Profit Rose Against Weak Comparative Year

Alliance Trust PLC said Friday that its 2021 pretax profit rose significantly on higher revenue and a weak comparative year, but missed its own performance benchmark.

 
Market Talk: 

Petra Diamonds Could Achieve $138 Mln Revenue in 3Q

1112 GMT - Petra Diamonds has revenue of $110.5 million from 80% of volumes sold at the current February/March tender, which is seen as a positive surprise by the company's corporate brokerage Peel Hunt. With 20% of volumes left to sell, quarterly revenue of $138 million looks achievable assuming a comparable mix, Peel Hunt says. "While the volumes placed at tender look lower than we anticipated, the pricing received so far, at $188/ct, is nearly 60% above our expectation," the brokerage says. Shares in Petra, which owns diamond mines in South Africa and Tanzania, rise 2.1% to 99 pence. ([e-mail])

Jupiter Fund Management Might Have a Difficult Start to The Year

1107 GMT - Jupiter Fund Management's 2021 results were in line with expectations, but outflows remain a significant headwind, Peel Hunt says. The U.K. fund-management group could have a difficult start to the year as it highlighted short-term challenges, like the macro and geopolitical context, Peel Hunt says. Several larger funds have already reported a weak investment performance in January, the U.K. brokerage adds. Peel Hunt again downgrades its 2022 forecast for Jupiter, expecting pretax profit of GBP152.5 million below consensus of GBP162 million. Shares are flat at 203.6 pence. ([e-mail])

Pearson Gains After Flagging Buyback, Upbeat Outlook

1055 GMT - Shares in Pearson are among the biggest FTSE 100 risers, up 9% after the education publisher announced a GBP350 million share-buyback program and an upbeat revenue-margin outlook. Shore Capital upgrades the stock to buy from hold, saying the company is benefiting from positive operational, trading and financial momentum. "More broadly, we like Pearson's financial strength, growing exposure to--and substantial sunk investment in--digital products and its status as a beneficiary of a positive medium-term outlook for global learning spend," the brokerage says. ([e-mail])

IAG Shares Seen Likely to Benefit From 2022 Capacity Outlook, Guidance

1035 GMT - Airline group IAG's 4Q operating loss of EUR305 million was better than the consensus loss of EUR367 million and Citi's estimate of EUR384 million, driven by better-than-expected revenue of more than EUR387 million, Citi says. The company--which operates British Airways and Iberia, among others--is expected to fly at 85% of 2019's capacity in 2022, and has said it will return to an operating profit in 2Q, Citi says. "We think that the shares will react positively to these results given the positive outlook on capacity ramp up and operating profit guidance for 2022," the U.S. bank says. Citi rates the stock buy and has a 2,200 pence target price. Shares are down 1.1% at 145.84 pence. ([e-mail])

Rightmove Reaps Benefits as Customers Upgrade Packages

1029 GMT - Rightmove continues reaping the benefits of its position as the leading U.K. property website, as the number of customers taking its upgraded package more than doubled in 2021, AJ Bell says. The online property portal's position in the market is already very strong and therefore growth in revenue, earnings and cash flow is heavily reliant on charging agents more, so this development is significant, the brokerage says. "Rightmove has faced a backlash from the industry for the level of fees it charges but despite some efforts to unseat them from their dominant position, including through agent-backed rival OnTheMarket, the company has proved very hard to budge," AJ Bell says. Shares are up 4.8% at 645.0 pence. ([e-mail])

Rightmove Benefits From Buoyant UK Housing Market

1020 GMT - Rightmove shares rise 4% after the property website said 2021 pretax profit topped pre-pandemic levels as a housing boom drove up revenue per advertiser. Rightmove's market-leader status and popularity among prospective property buyers creates a virtuous circle for the business, AJ Bell says. "This reinforces its position as a must-have product for estate agencies and gives it significant pricing power in securing agency subscriptions," the brokerage says. "It doesn't hurt that the U.K. housing market has been buoyant of late, which means its estate-agent customers are happy to pay more for its services." ([e-mail])

IAG Falls After Reporting Loss as Headwinds Linger

1005 GMT - International Consolidated Airlines Group shares top the FTSE 100 fallers, down 1.9% as the owner of British Airways and Iberia reported a narrowed net loss for 2021. "The airline sector has been waiting a long time for its big comeback and every time it looks as if there are clear skies, along comes something else to stop the recovery," AJ Bell says. "Covid's multiple variants have weighed on sentiment towards wanting or being permitted to fly, which has put a lot of financial pressure on airlines. Now we have the Russia-Ukraine war making some people nervous about wanting to get on a plane again. All this adds up to a big headache for IAG, which continues to lose money." ([e-mail])

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(END) Dow Jones Newswires

02-25-22 0634ET