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Reports UK

UK stock market morning note (May 09, 2014)

May 9, 2014, Friday, 07:23 GMT | 02:23 EST | 10:53 IST | 13:23 SGT
Contributed by SVS Securities

The FTSE 100 is called to open lower this morning following the lack of clear direction from Wall Street and in Asia overnight. The economic diary today focuses on the UK with the release of manufacturing and industrial production data together with trade balance figures. Commodity prices are trading in narrow ranges and on the foreign exchanges, the major currencies are also range bound.


Company Announcements

Petrofac

IMS reports that net profit for the full 2014 year is expected to be between USD580m- USD600m, reflecting in the main lower than expected earnings from its Integrated Energy Services (IES) due to the delay to the Greater Stella Area project, lower than expected production on Ticleni, the dilution of its equity interest in Seven Energy and no significant contribution from new awards. It has completed a review of IES, resulting in a refocusing of its business development plans. It noted a good operational performance in Engineering, Construction, Operations and Maintenance (ECOM) and strong order intake with over USD5.5bn in the year to date. The group's backlog stood at a record level of USD18.6bn at the end of March 2014.

Drax

IMS notes that since publishing its preliminary results in February, power prices have fallen further, with the mild weather across Europe resulting in weaker gas markets. It also currently anticipates some further weakness in renewables obligation certificates (ROC) prices this year, exacerbated by abnormally high wind generation. It now anticipates that, unless markets improve in the coming months, full year EBITDA and underlying EPS for 2014 will be below current market forecasts.

Grafton

IMS from the builders merchant and DIY company notes that trading in the first 4 months of the year has been positive with a strong start compared to weak comparatives for the same period a year ago which was affected by adverse weather. Demand has generally improved, supported by evidence of a continuing recovery in the UK and Irish economies. Group revenue was ahead 13.5% to GBP654m in the 4 months to end April 2014.