UK stock market morning note (February 12, 2014)
February 12, 2014, Wednesday, 10:23 GMT | 05:23 EST | 14:53 IST | 17:23 SGT
The FTSE 100 is called to open slightly higher this morning following the gains overnight on Wall Street and in Asia after Janet Yellen the new US Federal Reserve Chair's testimony signalling that interest rates would be kept low for an extended period. Today's economic diary is likely to see Mark Carney, Governor of the Bank of England update his forward guidance policy when he presents the Bank's quarterly Inflation Report. This will be followed by a speech this afternoon by the ECB President Mario Draghi. Commodity prices are generally firmer and on the foreign exchanges, the dollar is slightly lower against the major currencies but all are trading within narrow ranges.
Tullow Oil Final Results see profits after tax fall 68% to USD216m impacted by exploration write-offs and a fall in profit on disposals on revenue ahead 13% at US2.64bn. The dividend is maintained at 12p a share. Average working interest production rose 6% to 84,200 boepd, generating operating cashflow of USD1.9bn with 2014 average working interest production expected to be in the range of 79,000-85,000 boepd. It added that a significant exploration and appraisal programme is planned for this year targeting opportunities in its core plays in Africa and the Atlantic margins, with it again aiming for resource additions of over 200 mmboe.
Reckitt Benckiser Full Year Results see net revenue ahead 5% at actual exchange rates to GBP10bn with adjusted operating profit up 2% at GBP2.6bn and operating margins increasing by 20 bps to 23.6% - the latter exceeding targets. The full year dividend is raised 2% to 137p. It added that market conditions are more challenging now than at the beginning of last year, particularly in some emerging markets. However, it is targeting net revenue growth of 4-5% and flat to moderate operating margin expansion.
Telecity Final Results see adjusted EBITDA up over 18% to GBP153.2m on revenue ahead 15.1% at GBP325.6m. The full year dividend is raised to 10.5p from 7.5p. It noted that it had a shortlist of candidates for the role of CFO and expects to update the market in the coming weeks. It added that it entered 2014 with a solid recurring revenue base and a good order book pipeline. Management expect 2014 full year revenue to be in the range of GBP355m-GBP362m at current exchange rates with operating margins remaining strong. Total capex is expected to range from GBP110m to GBP130m per annum in the medium term.