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Shell Reports Better-Than-Expected Profits, Distributions, Says RBC

07/28/2022 | 04:08am EDT

Shell Reports Better-Than-Expected 2Q Profits, Distributions

0737 GMT - Shell has reported strong numbers across the board for the second quarter of the year, with higher-than-expected shareholder distributions, Biraj Borkhataria, energy analyst at RBC Capital Markets, says in a note. Adjusted earnings of $11.5 billion were above consensus of $11.0 billion, with better-than-forecast performances in upstream and refining, he says. In addition, Shell outlined a $6 billion share buyback program and a flat dividend. "Notably, assuming the majority of this is done in calendar 3Q, the combined distributions just under $8 billion would be well ahead of our assumption of $6 billion, although with a slightly different mix," Borkhataria says. Shares in the energy group rise 1.2% after its second-quarter results. (jaime.llinares@wsj.com)

 
Companies News: 

Shell Launches $6 Bln Share Buyback as 2Q Earnings Hit Record High

Shell PLC on Thursday reported a jump in its profits to a record high in the second quarter and announced a share buyback of $6 billion while keeping the dividend unchanged.

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Segro 1H Adjusted Pretax Profit, Revenue Rose

Segro PLC on Thursday reported a rise in first-half adjusted pretax profit and revenue, as the company benefited from high customer demand and low supply.

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Barclays 2Q Pretax Profit Fell Significantly, Missing Market Views; Costs Set to Keep Rising

Barclays PLC reported Thursday a significant decline in second-quarter pretax profit, missing market views, after the U.K. bank booked higher operating costs and impairments which it said are set to continue rising.

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ITV 1H Pretax Profit, Revenue Rose on Strong Performance in Studios, Media & Entertainment

ITV PLC said Thursday that first-half pretax profit and revenue rose as it booked strong performances in the studios and media-and-entertainment divisions.

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St. James's Place Swung to 1H Pretax Loss, Funds Under Management Fell

St. James's Place PLC reported Thursday a swing to a pretax loss for the first half of 2022 and said funds under management declined on the effects of reversals in global investment markets.

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BT Group 1Q Pretax Profit Fell, Adjusted Ebitda Rose

BT Group PLC said Thursday that pretax profit fell in the first quarter of fiscal 2023, but that adjusted Ebitda rose due to flow through from revenue and continued strong cost control.

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Airtel Africa 1Q Pretax Profit Rose 6.5%; To Grow Ahead of Market This Year

Airtel Africa PLC on Thursday reported a 6.5% rise in first-quarter pretax profit and said that it continues to target growth ahead of the market this year.

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Rentokil Initial 1H Pretax Profit Rose on Strong Pest Control and Hygiene Growth

Rentokil Initial PLC said Thursday that pretax profit for the first half of the year rose, driven by a positive performance across its pest-control and hygiene businesses, and that raised its dividend payout.

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Centrica Resumes Dividend as 1H Earnings Jump

Centrica PLC on Thursday reinstated the dividend and reported improved earnings for the first half of 2022.

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Schroders 1H Pretax Profit Slipped; Assets Under Management Rose

Schroders PLC on Thursday reported a fall in pretax profit for the first half of the year, while assets under management rose.

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BAE Systems Appoints Land Securities' Cressida Hogg as Chairman Designate

BAE Systems PLC said Thursday that Land Securities Group PLC's Chairman Cressida Hogg will join its board as chairman designate, with effect from Nov. 1.

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RELX 1H Net Profit, Revenue Rose Amid Strategy Shift

RELX PLC said Thursday that first-half net profit and revenue rose due to its strategy of focusing on the organic development of its analytics and decision tools.

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BAE Systems Launches $1.8 Bln Buyback, 1H Pretax Profit Fell on Higher Costs

BAE Systems PLC said Thursday that it was launching a three-year share buyback of up to 1.5 billion pounds ($1.82 billion) as it reported a fall in pretax profit for the first half of 2022 after booking higher costs.

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Smith & Nephew PLC Sees Fall in 1H Pretax Profit

Smith & Nephew PLC said Thursday that pretax profit fell in the first six months of the year and backed its guidance for the rest of 2022.

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Aveva 1Q Revenue Fell on Constant Currency Basis; Sales Pipeline Solid for FY 2023

Aveva Group PLC said Thursday that revenue on a constant currency basis fell by a mid-single digit rate in the first quarter of fiscal 2023, and that its sales pipeline was solid for the remainder of the fiscal year.

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Diageo FY 2022 Pretax Profit Rose on Robust Sales Growth; Raises Dividend

Diageo PLC on Thursday reported a rise in pretax profit for fiscal 2022 on robust sales growth, although the print missed expectations, and said it has raised its dividend payout.

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Barclays puts GBP1.3bn aside for trading blunder, marring fee surge -- Financial News

Error takes the shine off positive results in trading unit

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Weir Group 1H Pretax Profit Rose 26%; Hikes Dividend

Weir Group PLC on Thursday reported a 26% rise in pretax profit for the first half of the year and said that it expects headline operating profit to be at the top end of analysts' range for the full year.

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Hammerson Swung to 1H Pretax Profit on Continued Pandemic Recovery

Hammerson PLC said Thursday that it swung to a first-half pretax profit as footfall recovered to near prepandemic levels and costs fell.

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Metro Bank 1H Pretax Loss Narrowed; Monthly Breakeven Seen in 1Q 2023

Metro Bank PLC said Thursday that first-half pretax loss narrowed and that the strategic plan remains on track, with monthly breakeven expected during the first quarter of 2023.

 
Market Talk: 

Centrica's Dividend Resumption Will Be Well Received

0747 GMT - Centrica has released a strong set of results for the first half of the year, including a return to paying dividends which should be well received, RBC's utilities analyst John Musk says in a note. The upstream and nuclear businesses benefited from a high commodity price environment in the first half, whilst the energy marketing and trading segment also performed well, Musk says. "Centrica points to medium-term progress to a dividend payout ratio of 50%, as well as the potential return of surplus structural capital to shareholders in due course. We reiterate our outperform rating and 125 pence price target [on the stock]," he says. (jaime.llinares@wsj.com)

Anglo American Gains as EPS, Dividend Top Hopes

0745 GMT - Shares in Anglo American rise 4% after the miner reported better-than-expected first-half earnings per share and dividends. Citigroup says EPS at $3.11 was 9% better than consensus, while the interim dividend also topped expectations. "Given results broadly in line, we don't think there will be material change to consensus estimates just on the back of these results," Citi analysts say in a note. "However, commodity prices for Anglo have trended lower over the last couple of months and there could be some small downgrade to consensus estimates for FY'22 as analysts update their numbers for lower commodity prices." (philip.waller@wsj.com)

Schroders's 1H Earnings Look Solid, Strategy Is Sensible, RBC Says

0744 GMT - Schroders delivered solid 1H earnings and its strategy to transition away from its core traditional active management products and instead focus on structural growth areas of private assets, solutions and wealth management is a sensible long-term strategy, RBC Capital Markets says. The FTSE 100 asset manager's strong ESG offering and improving investor sentiment should help stabilize outflows from its traditional active products, RBC analyst Mandeep Jagpal says in a note. "Our view is that the difficult market environment will continue to be more of a drag for mutual funds and institutional flows, as clients reconsider their asset-allocation policies," the Canadian bank says. RBC retains its sector perform rating and 2,700 pence price target on the stock. Shares are up 3.4% at 2,822 pence. (joseph.hoppe@wsj.com)

BAE Systems 2022 Guidance Benefits From Foreign-Exchange Tailwind

0743 GMT - BAE Systems' first-half results were good as its operating profit of GBP1.03 billion beat consensus by 4% and the defense-and-aerospace company backed its 2022 guidance, Citi analyst Charles J. Armitage says in a note. Sales of GBP10.58 billion also beat consensus of GBP10.45 billion with free cash flow guidance of GBP123 million based on a foreign-exchange tailwind, which sees the dollar to pound rate at $1.38, Armitage says. "Very much the predictable results we'd hoped for, aided by a foreign-exchange tailwind going forward - we expect the shares to be up this morning," he says. Citi has a buy rating on the stock with a 878 pence target price. (anthony.orunagoriainoff@dowjones.com)

Diageo's Guidance for FY 2023 Is Unclear, RBC Says

0741 GMT - Diageo's FY 2022 results were positive, though expectations for fiscal 2023 remained unclear, RBC Capital Markets analysts James Edwardes Jones an Emma Letheren say in a research note. The liquor maker mentioned an already-known challenging operating environment amid a weaker market in the U.S., while it backed its medium-term guidance: organic net sales growth in the range of 5% to 7% and organic operating profit growth in the range of 6% to 9%. However, it is unclear whether this is quantitative guidance for 2023, the analysts say. "We think Diageo is priced for something like perfection; there's a danger that this is not how 2023 will turn out," they say. (michael.susin@wsj.com)

Segro's Shares Price Already Factors in Good Prospects

(MORE TO FOLLOW) Dow Jones Newswires

07-28-22 0407ET

Stocks mentioned in the article
ChangeLast1st jan.
AIRTEL AFRICA PLC -3.47% 133.4 Delayed Quote.-0.22%
ANGLO AMERICAN PLC -1.61% 2870 Delayed Quote.-4.84%
AVEVA GROUP PLC -0.47% 3152 Delayed Quote.-7.40%
BAE SYSTEMS PLC 0.83% 821.4 Delayed Quote.49.40%
BARCLAYS PLC -2.07% 147.62 Delayed Quote.-21.06%
BRITISH POUND / US DOLLAR (GBP/USD) 0.03% 1.13594 Delayed Quote.-16.21%
BT GROUP PLC -2.36% 126.35 Delayed Quote.-25.48%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.07% 0.7358 Delayed Quote.-7.24%
CENTRICA PLC 0.31% 71.62 Delayed Quote.0.17%
CITIGROUP INC. -1.28% 43.84 Delayed Quote.-27.41%
DIAGEO PLC -0.26% 3781.5 Delayed Quote.-6.31%
DOW JONES AFRICA TITANS 50 INDEX -0.40% 416.23 Real-time Quote.-21.89%
EURO / US DOLLAR (EUR/USD) 0.04% 0.9917 Delayed Quote.-12.19%
FTSE 100 -0.48% 7052.62 Delayed Quote.-4.04%
HAMMERSON PLC -1.37% 18.305 Delayed Quote.-44.19%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.22% 0.01225 Delayed Quote.-8.62%
ITV PLC -4.96% 58.6 Delayed Quote.-46.99%
LAND SECURITIES GROUP PLC -3.81% 509.8 Delayed Quote.-34.34%
METRO BANK PLC -5.25% 79.4 Delayed Quote.-17.38%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.06% 0.57752 Delayed Quote.-16.33%
RELX PLC 0.31% 2277 Delayed Quote.-5.20%
RENTOKIL INITIAL PLC -0.55% 492.1 Delayed Quote.-15.74%
S&P AFRICA 40 INDEX 0.22% 135.66 Real-time Quote.-22.12%
SCHRODERS PLC -3.02% 395.3 Delayed Quote.-34.68%
SEGRO PLC -3.95% 724.2 Delayed Quote.-49.59%
SHELL PLC 1.73% 2378.5 Delayed Quote.46.66%
THE WEIR GROUP PLC -0.79% 1507 Delayed Quote.-11.95%